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Amazon.com is presently in early discussions with Walt Disney Co. about collaborating on the development of ESPN’s streaming version. Amazon is also exploring the option of acquiring a minority stake in the sports network as part of this potential partnership.Individuals familiar with the situation reported these details through The Information on Thursday.
Currently, Disney and ESPN are actively determining an appropriate price for the new service, according to the report. And the pricing is one of the things necessary for smooth negotiations
The report adds that ESPN is considering a subscription fee ranging from $20 to $35 a month for the new streaming service. This pricing structure could potentially position it as the most expensive streaming service in the United States.
Amazon.com, Walt Disney, and ESPN have not yet provided responses to requests for comment from news media
Disney CEO’s stance on the Partnership
In July, Disney CEO Robert Iger informed CNBC of his company’s intention to retain control over ESPN. He also expressed a desire to seek out strategic partners for forming a joint venture or acquiring a stake in the sports network. This strategy aims to empower ESPN to directly engage consumers, marking a significant shift in distribution strategy.
In summary, preliminary discussions are ongoing between Amazon.com and Walt Disney regarding the collaborative development of ESPN’s streaming version. Simultaneously, Amazon.com is actively looking at the prospect of owning a minority share in the sports network and negotiation between Disney and ESPN is dependent on setting the appropriate subscription fee for the Upcoming streaming service,with $20 to $35 the potential monthly charges ranging from.
While awaiting responses from the involved parties, it’s worth noting that Disney’s CEO previously underlined the company’s commitment to elevating ESPN’s significance and exploring partnerships for improved consumer accessibility. This strategic direction highlights the evolving media distribution landscape, emphasizing the growing importance of direct-to-consumer offerings within the industry.