ESPN has launched a standalone streaming service, marking a significant shift in the way the iconic sports channel will operate. The new service, which provides access to all of ESPN’s channels along with additional personalization features, costs $29.99 a month or $299.99 a year. An ad-supported bundle with Disney+ and Hulu is also available for $35.99 a month.
Disney CEO Bob Iger stated that the company is not planning to release subscriber numbers for the new ESPN offering, citing an “agnostic” approach rather than focusing on immediate metrics such as subscribers. This decision has sparked debate among investors, who typically use subscriber numbers to gauge a streaming platform’s success.
Iger argued that Disney is taking a long-term view by prioritizing financial success over short-term growth. He stated that the company believes revenue and earnings are more important indicators of its performance than subscriber numbers. Iger also pointed out that some companies have stopped reporting subscriber totals, such as Netflix and Apple, which has led to an increase in investor focus on revenue and cash flows.
By withholding subscriber numbers from the start, Disney aims to avoid potential backlash from investors who may feel management is hiding something if the numbers are not meeting expectations. The company can still provide updates on subscriber milestones, but this approach allows them to maintain focus on generating profits rather than chasing growth at all costs.
The decision also reflects a broader shift in how Disney operates its divisions. Iger stated that the company will report its “Sports” division as usual, without separating viewership metrics from other earnings reports. This move aims to keep investors focused on financial success and running the entire company well, rather than solely focusing on digital offerings.
Ultimately, the impact of this decision on Disney’s stock price will depend on how it boosts ESPN’s bottom line through increased engagement with its brand and more personalized experiences. While some may question the lack of transparency on subscriber numbers, Iger’s approach seems to be a deliberate choice that prioritizes long-term financial success over short-term growth.
Source: https://www.cnbc.com/2025/08/21/were-sticking-with-an-old-school-rubric-to-grade-the-success-of-disneys-new-espn-service.html