Walt Disney Company CEO Bob Iger said today that it is possible that ESPN might be sold directly to the consumer, similar to HBO’s HBO Now. However, he cautioned that it would not be for another five years.
Iger made his comments during an interview on CNBC today, suggesting that it would be possible to sell ESPN and its channels as an individual package directly to consumers if the current multichannel bundle system finally erodes over time.
“While the business model may face challenges over the next few years, long term for ESPN ... they'll be fine. They have pricing leverage, too,” Iger told Squawk Box. "Disney [Channel] is another ... brand and product that could be sold directly to the customer."
Iger explained that they are trying to treat changing technology as a “friend, not a foe,” which Disney will have to do as more people cut the cord. After all, both HBO and Showtime now offer streaming networks that don’t require a cable subscription.
However, while HBO can offer its streaming channel for $14.99 a month, Disney might have to offer ESPN at a much higher price. ESPN pays millions for rights to broadcast sports, so the monthly subscription fee could be as much as $36, notes Forbes. That means you would pay $432 a year for only ESPN content.
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