• by Karlene Lukovitz  @KLmarketdaily, August 25, 2023

Amazon has joined the growing ranks of players in early discussions with Disney about a partnership to launch an ESPN streaming service, and possibly a minority stake. 

Amazon, whose participation in talks was reported by The Information, joins the NFL, NBA, MLB and most recently, Verizon in expressing interest in a potential partnership on a full-blown ESPN streamer. 

Disney CEO Bob Iger has said that a direct-to-consumer version of the ESPN cable network is “not a matter of if, but when,” and that Disney is open to selling a stake in the network to a strategic partner. However, he has also said that Disney is not necessarily looking for a “cash infusion” from ESPN partners, but companies that can help ESPN transition to a D2C model in the form of contribution content, distribution and marketing support, or both.  

Amazon’s interest in ESPN is not surprising. The company, now in the second season of its 11-year, $11-billion exclusive streaming deal for the NFL’s “Thursday Night Football,” has been open about its intention to aggressively pursue more live sports deals for Prime Video, and it could potentially use one of its own streaming offerings to expand distribution for an ESPN D2C service. The combined clout of Disney and Amazon could also help in negotiating rights with the major sports leagues.  

As the talks continue, Disney is considering a monthly fee for an ESPN streamer of between $20 and $35, according to the report. 

While a fee much over $20 would make it the highest-priced streaming service in the U.S., ESPN will no doubt charge as much as the market will bear, given the skyrocketing costs of licensing mainstream sports rights, and the high audience demand for such coverage.