Skip to main content

Disney’s new billion-dollar purchase tees up stand-alone ESPN streaming service

After a few months of fiscal tire kicking, The Walt Disney Company today announced it will purchase a third share (33 percent) of Major League Baseball Advanced Media’s streaming secret weapon, BAMTech. The technology service and streaming company is responsible for streaming video for major clients, including Disney-owned ESPN and Time Warner’s HBO.

As expected, Disney will pay a whopping $1 billion for its share in the company. The payment will be made in two installments, including one now and one in January. As part of the terms of the deal, the media giant will also have the option to acquire majority ownership of BAMTech “in the coming years.”

Recommended Videos

“Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company,” said longtime Disney Chairman and CEO Bob Iger in a statement. “We look forward to working closely with BAMTech as we explore new ways to deliver the unmatched content of The Walt Disney Company across a variety of platforms.”

There’s no question that video streaming is becoming key to media companies, and Disney is clearly making it a priority. Apparently, the media company wants a “path to control” for its streaming media future. Disney and BAMTech were said to be in advanced talks since April, per Recode sources.

As the streaming landscape seems to evolve daily, it’s not surprising that BAMTech has attracted such a powerful suitor — the company has successfully grown from almost two decades of streaming Major League Baseball games to hosting HBO’s stand-alone streaming service, HBO Now, and more.

Under the terms of the deal, Disney said that BAMTech will also help Disney’s struggling ESPN brand “launch and distribute” a new stand-alone, multisport subscription streaming service. The service will include content provided by BAMTech and ESPN, including “live regional, national, and international” events. Current content on ESPN’s linear networks, such as Sportscenter, will not be part of the service — at least not yet. Disney says it will roll out more details in the next few months.

ESPN chief John Skipper had this to say about the new partnership: “Bringing a multisport service directly to fans is an exciting opportunity that capitalizes on BAMTech’s premier digital distribution platform and continues ESPN’s heritage of embracing technology to create new ways to connect fans with sports. As WatchESPN continues to grow and add value to the multichannel video subscription, this new service will be an outstanding complement.”

Forbes suggested last August that BAMTech could some day compete with the likes of Netflix and Hulu. The company already has appealing technology and a sterling track record, including streaming major sporting events. More coveted content could, in theory, help the company reach new heights. Disney, of course, has plenty of content aside from ESPN, including networks like Disney channel and ABC, dual animation studios (Pixar and Disney Animation), and relatively recent purchases of marquee studios Marvel and Lucasfilm — i.e. all things Star Wars.

We’ll be following these events in the coming months, so stay tuned to Digital Trends.

Updated 8-9-2016 by Ryan Waniata: Updated post to confirm Disney’s purchase of BAMTech, ESPN stand-alone streaming service.

Stephanie Topacio Long
Former Digital Trends Contributor
Stephanie Topacio Long is a writer and editor whose writing interests range from business to books. She also contributes to…
Standalone ESPN to launch by fall 2025, with Disney Bundle available
ESPN+ as seen on a television.

While we're still a long way away from being able to subscribe to ESPN all on its own, it appears that work is very much continuing behind the scenes. Disney CEO Bob Iger, at the company's annual shareholders meeting, gave a brief mention to the previously-announced standalone sports offering.

While no major details were dropped, Iger initially said that "the full suite of ESPN channels" would be available as their own streaming subscription "in the fall of 2025." While the year had previously been announced, the season had not. But it makes a lot of sense, given the importance of college football and the NFL to ESPN.

Read more
Former Apple exec joins upcoming sports streaming service as CEO
Pete Distad, CEO of the new sports streaming service from Disney, Fox, and Warner Bros. Discovery.

Former Hulu and Apple executive Pete Distad will serve as CEO of the new sports streaming service from Disney, Fox, and Warner Bros. Discovery. Handout photo

It doesn't have a name. It doesn't have a launch date. (And if you already subscribe to a streaming service like YouTube TV, this really isn't for you anyway.) But the upcoming super sports streaming service that combines the sports you'd find from Disney (think ESPN and ABC), Fox, and Warner Bros. Discovery now has someone in charge.

Read more
New streaming service looks to end endless Googling for sports
Warner Bros. Discovery President and CEO David Zaslav.

Warner Bros. Discovery President and CEO David Zaslav Jeff Kravitz / Warner Bros. Discovery

We still have a million questions about the upcoming sports streaming service that combines the live options from the likes of Disney (as in the full ESPN family), Fox, and Warner Bros. Discovery. Most important for what we're currently calling the super sports streaming service will be a name. And a close second will be what it's going to cost.

Read more