Media giant Disney (DIS) is officially launching its long-anticipated ESPN streaming app, just in time for football season. For the first time, the app will provide full access to all ESPN content in one place, including its linear TV channels. This move is part of Disney’s strategy to give more flexibility to sports fans, whether they have cable or not, by offering a direct-to-consumer alternative. ESPN Chairman Jimmy Pitaro called it one of the most important days in the network’s 46-year history by highlighting that fans have long wanted this kind of anytime, anywhere access.
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At the same time, Disney CEO Bob Iger stated that the company no longer views linear TV and digital platforms separately. Instead, the goal is to manage them together as one integrated ecosystem. As for pricing, cable subscribers will be able to log in and stream with no extra charge, while everyone else will choose from several plans. The first is the ESPN Unlimited plan, which costs $29.99/month or $299.99/year and includes over 47,000 live events like NCAA championships and major tennis tournaments. There’s also a bundle with Disney+ and Hulu for $35.99/month with ads, or $44.99/month without ads.
In addition, Disney is rolling out a more affordable ESPN Select tier that offers more than 32,000 live events, studio shows, and on-demand replays for $11.99/month or $119.99/year. Interestingly, existing ESPN+ subscribers will automatically be shifted to this plan. Additional bundles include the Disney+, Hulu, and ESPN Select package for $16.99/month with ads or $26.99/month without. Meanwhile, ESPN is boosting its content lineup through new deals with WWE (TKO)—reportedly worth $325 million a year—and a partnership with the NFL that involves acquiring the NFL Network.
Is DIS Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 19 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DIS price target of $136.80 per share implies 17.5% upside potential.
