Would you pay $22 a month for a standalone ESPN streaming service?
Walt Disney Co. reportedly is “actively preparing” to make ESPN a stand-alone streaming service, a future that’s sparked mixed reactions on Wall Street.
But Citi Research analyst Jason Bazinet is far more upbeat about the possibility. In his view, investors largely responded with a yawn to the latest report, which Disney hasn’t commented on. Bazinet, however, thinks there should have been more cheers, he said. That average revenue per user “is just above Disney’s U.S. linear revenue per sub across all channels,” he said. Disney has the potential to generate greater revenue from current ESPN+ subscribers who presumably would trade up to the enhanced version and also attract other sports lovers who’ve parted ways with traditional cable.
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