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Disney's (DIS) ESPN Launches ESPN BET Sportsbook With PENN
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The Walt Disney Company’s (DIS - Free Report) subsidiary ESPN announced its partnership with PENN Entertainment (PENN - Free Report) to launch a new sportsbook called ESPN BET for fans in the United States. PENN Entertainment's existing sportsbook will be rebranded as ESPN BET and available in 16 states where PENN is licensed.
ESPN BET leverages ESPN's multi-platform reach and PENN Entertainment's product expertise to offer fans a seamless way to access betting content and place bets on various sports events.
It will be the only sportsbook endorsed by ESPN and feature the latter's sports betting content across various platforms. ESPN BET will also feature and promote responsible gaming through education, policies and best practices.
PENN Entertainment will benefit from this strategic agreement by receiving ESPN's promotional services, traditional media and content integrations and ESPN talent access.
Disney Leveraging on Strong Offerings to Boost Prospects
Disney’s shares have inched up 1.5% year to date against the Zacks Media Conglomerates industry’s decline of 1.2% during the same time frame.
Disney rides on an expanding portfolio of streaming service offerings like Disney+, ESPN+, Hulu, Disney+ Hotstar and Star+ bolstering its content portfolio across genres.
Disney’s focus on sports streaming, particularly live sports, is expected to be a major growth driver. Disney’s ESPN+ streams various live sporting events, original shows, series and documentaries and holds major sports viewership rights. Its latest ESPN BET platform is expected to cater to the rising demand for a trusted brand in the sports betting space, thereby driving viewer engagement.
The Zacks Consensus Estimate for fiscal third-quarter 2023 ESPN+ paid subscribers are pegged at 25.75 million, indicating an increase of 1.8% sequentially.
Moreover, Disney’s monetization initiatives in recent times have been noteworthy. It has started offering an ad-supported tier across its streaming platforms and has added more than 1,000 advertisers in the past year. It intends to launch an ad tier on Disney+ in Europe by the end of 2023.
Disney Faces Stiff Competition
Disney has been suffering from intense competition in the digital streaming space from players like Warner Bros. Discovery’s (WBD - Free Report) HBO Max and Comcast’s (CMCSA - Free Report) Peacock offering a mix of live and on-demand content, including sports.
Disney has underperformed the shares of Warner Bros. and Comcast, which surged 52.2% and 29.9% year to date, respectively.
Due to such stiff competition and market saturation, DIS expects weakness in Disney+’s domestic subscriber base to continue in the fiscal third quarter. Moreover, higher programming and production costs across its platforms are expected to hurt profitability in the rest of 2023.
The Zacks Consensus Estimate for the fiscal third-quarter Disney+ paid subscriber base is currently pegged at 155 million compared with 157.8 million reported in the previous quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $22.44 billion, indicating a 4.34% growth from the year-ago quarter’s reported figure.
The consensus mark for third-quarter 2023 earnings is pegged at 99 cents per share, down 2.9% in the past 30 days.
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Disney's (DIS) ESPN Launches ESPN BET Sportsbook With PENN
The Walt Disney Company’s (DIS - Free Report) subsidiary ESPN announced its partnership with PENN Entertainment (PENN - Free Report) to launch a new sportsbook called ESPN BET for fans in the United States. PENN Entertainment's existing sportsbook will be rebranded as ESPN BET and available in 16 states where PENN is licensed.
ESPN BET leverages ESPN's multi-platform reach and PENN Entertainment's product expertise to offer fans a seamless way to access betting content and place bets on various sports events.
It will be the only sportsbook endorsed by ESPN and feature the latter's sports betting content across various platforms. ESPN BET will also feature and promote responsible gaming through education, policies and best practices.
PENN Entertainment will benefit from this strategic agreement by receiving ESPN's promotional services, traditional media and content integrations and ESPN talent access.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney Leveraging on Strong Offerings to Boost Prospects
Disney’s shares have inched up 1.5% year to date against the Zacks Media Conglomerates industry’s decline of 1.2% during the same time frame.
Disney rides on an expanding portfolio of streaming service offerings like Disney+, ESPN+, Hulu, Disney+ Hotstar and Star+ bolstering its content portfolio across genres.
Disney’s focus on sports streaming, particularly live sports, is expected to be a major growth driver. Disney’s ESPN+ streams various live sporting events, original shows, series and documentaries and holds major sports viewership rights. Its latest ESPN BET platform is expected to cater to the rising demand for a trusted brand in the sports betting space, thereby driving viewer engagement.
The Zacks Consensus Estimate for fiscal third-quarter 2023 ESPN+ paid subscribers are pegged at 25.75 million, indicating an increase of 1.8% sequentially.
Moreover, Disney’s monetization initiatives in recent times have been noteworthy. It has started offering an ad-supported tier across its streaming platforms and has added more than 1,000 advertisers in the past year. It intends to launch an ad tier on Disney+ in Europe by the end of 2023.
Disney Faces Stiff Competition
Disney has been suffering from intense competition in the digital streaming space from players like Warner Bros. Discovery’s (WBD - Free Report) HBO Max and Comcast’s (CMCSA - Free Report) Peacock offering a mix of live and on-demand content, including sports.
Disney has underperformed the shares of Warner Bros. and Comcast, which surged 52.2% and 29.9% year to date, respectively.
Due to such stiff competition and market saturation, DIS expects weakness in Disney+’s domestic subscriber base to continue in the fiscal third quarter. Moreover, higher programming and production costs across its platforms are expected to hurt profitability in the rest of 2023.
The Zacks Consensus Estimate for the fiscal third-quarter Disney+ paid subscriber base is currently pegged at 155 million compared with 157.8 million reported in the previous quarter.
This Zacks Rank #3 (Hold) company expects fiscal 2023 revenues and operating income to grow in the high single-digit percentage range. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $22.44 billion, indicating a 4.34% growth from the year-ago quarter’s reported figure.
The consensus mark for third-quarter 2023 earnings is pegged at 99 cents per share, down 2.9% in the past 30 days.