How Disney Wants to Take On Netflix With Its Own Streaming Services

Disney unveiled plans on Aug 8 for Netflix-style streaming services for sports programming from ESPN and Disney movies. It is a striking, multibillion-dollar bid to reposition Disney, the world’s largest entertainment company, for growth and to address worries of cord-cutting in the traditional television business. Disney’s direct-to-consumer services will start in 2018. The first one will offer ESPN programming, including baseball, hockey, tennis and college sports — about 10,000 regional and national events in its first year. By 2019, Disney plans to start a separate entertainment service, which will include Pixar movies, Disney Channel television series and film library content.

For the last two years, Disney has not been to convince investors that ESPN, its longtime growth engine, will keep chugging away — albeit more slowly — even as the network deals with the subscriber erosion that is buffeting the broader cable television business. Its efforts have included paying $1 billion last year for a 33 percent stake in BamTech, which handles streaming for baseball teams and HBO. At the time, Disney said it was working on an ESPN-branded streaming service. On Aug 8, the company said it would pay $1.58 billion for an additional 42 percent stake in BamTech. Robert A. Iger, Disney’s chief executive, said the acquisition would help his company compete with streaming giants like Netflix and Amazon by introducing a video home base for all things Disney. “The media landscape is increasingly defined by direct relationships between content creators and consumers,” Iger said. “This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the company.”