Disney recently stated they want to keep ESPN after shopping the network and finding no takers. Disney is now looking to partner up with Amazon to show ESPN content on Amazon's streaming service. The initial cost is expected to be $25 a month. Wall Street called the initial price for the services the most expensive for streaming services and a major problem.
Wall Street believes viewer want live sporting events, but not at that cost. Viewers would need to make a choice between what streaming services to keep and what to drop. Streaming services are competitive with one another. But the cost is getting too expensive for the average viewer to carry every streaming service of interest to them.
Wall Street thinks Disney/Amazon are out of line to think the can get away with charging more than Netflix (most expensive streaming service), but offer fewer programming choices to a smaller audience.
Disney may have to sell a percentage of ESPN to Amazon if they want Amazon to foot half the bill. Disney doesn't want to do this. The SEC may have issues with this because this is not what they signed up for when they Put all their eggs into the ESPN basket.
Wall Street believes viewer want live sporting events, but not at that cost. Viewers would need to make a choice between what streaming services to keep and what to drop. Streaming services are competitive with one another. But the cost is getting too expensive for the average viewer to carry every streaming service of interest to them.
Wall Street thinks Disney/Amazon are out of line to think the can get away with charging more than Netflix (most expensive streaming service), but offer fewer programming choices to a smaller audience.
Disney may have to sell a percentage of ESPN to Amazon if they want Amazon to foot half the bill. Disney doesn't want to do this. The SEC may have issues with this because this is not what they signed up for when they Put all their eggs into the ESPN basket.
