Disney CEO considers entering the gaming industry via ESPN
Published: November 19, 2021
The Disney CEO, Bob Chapek, has said his company needs to get into the online gambling industry more seriously. The enterprise has to capitalize on the opportunity now that the attitudes towards gaming are shifting.
It will look to bring revenue to ESPN without damaging its family-friendly orientation. Gaming would attract younger sports fans, though it is still largely unclear how the two companies will enter the market.
Chapek has stated this is an opportunity for Disney to enter the sports betting arena. Admittedly, there are certain concerns about the brand withdrawal if the company signs betting partnerships.
However, recent enterprise research has shown the new activity would not hurt the franchise. He has added Disney will strengthen its sports betting presence via its ESPN brand.
It also has the potential to collaborate with other operators in the field in a significant way. The audience seeing Disney and ESPN as separate brands will also help the transition into a new industry.
The CEO has noted the betting will fortify ESPN, as it could attract younger audiences. They like to play games when watching sports, so their experience would be complete. Since Disney has always followed the consumers’ wishes, it must consider wetting its feet in this field.
Some spheres haven’t brought huge earnings to Disney, but the sports market has been its brightest one. 90% of the most-watched programmes on Disney’s networks in 2020 were sports events, with ESPN+ increasing subscribers by 66%.
The sports market provides an excellent opportunity for growth, especially after Disney has signed a ten-year deal with the NFL. Nevertheless, ESPN hasn’t recorded advertising revenue growth in Q4, and sports gaming could help with that.
Both companies have already been connected to sports betting, with ESPN cutting a deal with giants like DraftKings and Caesars Entertainment.
However, although the issue has been considered, it is not elaborated on how Disney and ESPN would penetrate the industry. For now, it is certain the enterprises and the fans alike are interested in sports betting and online casinos.
About Sports Betting in North America
Sports betting is a booming business in North America. Canada has recently legitimized single-game sports betting, with the provinces regulating the activity by way of the new federal law. Bill C-218 has been active since August 2021.
Furthermore, sports betting is legal in about thirty US states, with more of them moving towards legalization. The USA is a highly prospective betting market that is expected to flourish in the near future.