Disney may be changing under new leadership, but one major piece of the company apparently isn’t going anywhere.
Disney CEO Josh D’Amaro is making his position on ESPN clear, reaffirming that he has no interest in spinning off the sports giant despite recent financial pressures facing Disney’s sports business.
The comments came during D’Amaro’s interview with CNBC at D23, as Disney’s new CEO discussed ESPN’s place within the larger company and how Disney plans to navigate a rapidly changing sports-media landscape.
And according to D’Amaro, ESPN remains firmly in the plan.
When asked about ESPN and the recent decline in Disney’s sports results, D’Amaro reiterated his stance:
“I have been clear that I’m not interested in spinning off ESPN.”
That’s a pretty definitive answer.
The question comes at an important time for ESPN. According to the report, Disney’s sports segment saw operating income decline 17% in its fiscal third quarter, even as company executives pointed to strengths including increased NBA Finals ratings and ESPN’s broader sports portfolio.
The sports-media business as a whole is also dealing with some pretty significant changes, including the continued decline of traditional cable subscriptions and increasingly expensive sports-rights agreements.
But Disney’s strategy appears to be adapting ESPN to those changes rather than separating itself from the brand.
One major part of that strategy? Disney+.
D’Amaro indicated that Disney wants to move more sports content onto Disney+ as it looks for ways to reach more casual sports viewers, further connecting ESPN with the company’s larger streaming ecosystem.
That’s particularly notable as Disney continues expanding its sports-streaming strategy. ESPN Unlimited has already made ESPN’s linear networks and services available through streaming, including through the ESPN hub within Disney+ for eligible subscribers.
Disney has also continued investing in live sports. Just days before D’Amaro’s comments, the company announced a multi-year deal that will bring Formula E races to Disney+ across 144 territories, with U.S. coverage also available through ESPN platforms.
In other words, Disney doesn’t appear to be backing away from sports. It appears to be looking for more places to put them.
There are still plenty of challenges ahead for ESPN, particularly as the traditional cable television model continues changing and competition for premium sports rights remains expensive.
But if anyone was wondering whether Disney’s CEO transition could revive the possibility of ESPN being separated from the company, D’Amaro’s answer is pretty straightforward. That’s not his plan.
Instead, Disney appears focused on making ESPN work within its growing streaming ecosystem and using Disney+ to introduce more viewers to its sports programming.
Keep checking back with Theme Park Scope for the latest Disney business news, ESPN updates, Disney+ streaming announcements, D23 news, and other developments from The Walt Disney Company.
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