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Disney's ESPN Problem May Finally Be Catching Up To It

Nov. 02, 2021 8:44 AM ETThe Walt Disney Company (DIS)AMZN, CMCSA, FOX, T, PARA23 Comments
Max Greve profile picture
Max Greve


  • Disney's new NFL deal almost certainly marks the end of its Disney Bundle, a key part of its streaming strategy up till now.
  • The new deal has full streaming access, which means cord-cutters can now cancel pay-TV and subscribe to ESPN+ for full access to Disney's NFL content.
  • The current math, at ESPN+'s current price, doesn't even come close to working. Roughly speaking, a quadrupling of ESPN+'s price or more is probably necessary.
  • This would double the Bundle price and essentially force non-sports subscribers to subsidize sports - the very thing that drove them out of pay-TV and to streaming in the first place.
  • Even after breaking the Bundle, substantial losses on the deal are possible. Those plus the end of the Bundle may raise questions about Disney's streaming strategy and pressure the stock.

Levi Stadium Opens As Mass Covid Vaccination Site

Justin Sullivan/Getty Images News

The dust still hasn't fully settled on the mid-October reports that Disney (NYSE:DIS) was seriously exploring spinning off or selling their one-time crown jewel ESPN. Disney was quick to label the reports inaccurate, and

This article was written by

Max Greve profile picture
Max Greve is a graduate of Northwestern University with a quadruple major in History, Economics, Political Science, and International Studies. Max is a full-time writer and in addition to stock market trends also writes articles on government, current events, macroeconomic trends, and last but not least, the ongoing inefficiencies of professional sports.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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