Disney CEO Says ESPN Could Be Sold Directly To Customers

HBO and CBS have stand-alone platforms for people who don't want to subscribe to cable television.

Could ESPN be next?

Disney CEO Robert Iger appeared on CNBC's Squawk Box on Monday, July 27, and said ESPN could eventually cut the chord from cable TV and be sold to customers directly, but that the prospect isn't likely in the next five years.

"If we end up seeing more erosion in the so-called multichannel [cable and satellite dish TV] bundle, quality will win out," Iger said. "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."

This same topic of ESPN being offered as a direct-to-consumer service was discussed in lengthy features by the Wall Street Journal and Forbes earlier this year.

In March, Forbes estimated that viewers would have to pay $36 per month for ESPN as a stand-alone service. Earlier this month, the Wall Street Journal said that the Worldwide Leader in Sports would have to charge about $30 per customer to make the equivalent amount of revenue it makes now, using the unbundled model.

In appearing on CNBC, Iger also discussed the possibility of the Disney Channel being sold directly to viewers at some point down the road.

"Technology is the most disruptive force that so-called traditional media is facing," he added. "[But] we decided to view technology as a friend, not a foe."

The thing about ESPN is it covers sports so thoroughly that it could leave fans with no choice but to buy into its stand-alone platform if and when it goes that route.

But would you be willing to pay anywhere from $30 to $36 every month solely for ESPN?


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