ESPN, facing headwinds, might still reverse its slide

FILE - This Sept. 16, 2013, file photo shows the ESPN logo prior to an NFL football game between the Cincinnati Bengals and the Pittsburgh Steelers, in Cincinnati. ESPN has been a major profit center for Disney, but it's shedding cable subscribers in droves. (AP Photo/David Kohl, File)
FILE - In this Thursday, June 16, 2016, file photo, Mickey Mouse entertains visitors on the opening day of the Disney Resort in Shanghai, China. The Walt Disney Co. reports earnings, Tuesday, Aug. 8, 2017. (AP Photo/Ng Han Guan, File)
In this Monday, Aug. 7, 2017, photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange. The Walt Disney Co. reports earnings, Tuesday, Aug. 8, 2017. (AP Photo/Richard Drew)

NEW YORK — Two years ago, Disney CEO Bob Iger acknowledged that ESPN, long a major profit center for Disney, was shedding subscribers. On Tuesday, Disney announced a plan intended to start bolstering ESPN's fortunes.

For starters, the sports service will now launch a streaming sports service in early 2018, Disney said. The service, to be delivered through the ESPN app, will offer baseball, hockey, soccer and tennis matches, as well as college sports.

Notably, ESPN will not be streaming pro football or basketball, at least initially.

Disney is also buying a majority stake in streaming service BAMTech for $1.6 billion. That ups Disney's ownership to 75 percent, from 33 percent. The service was started by Major League Baseball, which remains a minority owner along with the National Hockey League.

Disney had always described its BAMTech investment as key to developing new streaming services for ESPN and other parts of Disney.

Investors have been concerned about ESPN's prospects for a while. Their big fear: ESPN might be facing long-term decline as more people quit cable or choose cheaper bundles without sports.

Over time, that could kick off a death spiral in which fewer subscribers mean less money for ESPN to use in bidding for sports rights; fewer games to air would then give more subscribers reason to quit.

But optimists believe ESPN has the clout to strike better deals with cable and satellite-TV companies that would ensure the channel reached more households and raise the price Disney gets from cable distributors. That could mean a pricier cable bundle for consumers, too.

Must Read

The Latest: Kasich warns against Medicaid phase-out

Mar 7, 2017

Ohio Gov. John Kasich says phasing out Medicaid coverage without a viable alternative is "counterproductive" and potentially risky

Mignolet saves late penalty, Liverpool holds Chelsea 1-1

Jan 31, 2017

Simon Mignolet saved a late penalty after being at fault for an early goal, earning Liverpool a 1-1 draw against Chelsea that slowed the leaders' charge to the Premier League charge to the title

Davis Cup: Defending champ Argentina KO'ed by Italy

Feb 6, 2017

Defending champion Argentina was knocked out of the Davis Cup in the first round by Italy

People also read these

The Latest: Kasich warns against Medicaid phase-out

Mar 7, 2017

Ohio Gov. John Kasich says phasing out Medicaid coverage without a viable alternative is "counterproductive" and potentially risky

Mignolet saves late penalty, Liverpool holds Chelsea 1-1

Jan 31, 2017

Simon Mignolet saved a late penalty after being at fault for an early goal, earning Liverpool a 1-1 draw against Chelsea that slowed the leaders' charge to the Premier League charge to the title

Davis Cup: Defending champ Argentina KO'ed by Italy

Feb 6, 2017

Defending champion Argentina was knocked out of the Davis Cup in the first round by Italy

Weather, 20 December
Houston Weather
+7

High: +11° Low: -2°

Humidity: 83%

Wind: NNE - 7 KPH

Canberra Weather
+27

High: +27° Low: +17°

Humidity: 87%

Wind: W - 20 KPH

Roissy-en-France Weather
+6

High: +6° Low: -5°

Humidity: 87%

Wind: ENE - 7 KPH

Florence Weather
+9

High: +9° Low: +6°

Humidity: 97%

Wind: ENE - 17 KPH

Parga Weather
+7

High: +16° Low: +4°

Humidity: 100%

Wind: SE - 25 KPH