ESPN Is a Disney Crown Jewel, but Its Financials Demand 'Drastic Pivot' to Direct to Consumer | Analysis

The sports network generated $1.89 billion operating profit in the first 9 months of fiscal 2023, but cord-cutting and escalating costs for sports rights are weighing on growth [ESPN Is a Disney Crown Jewel, but Its Financials Demand 'Drastic Pivot' to Direct to Consumer | Analysis]( By Lucas Manfredi Disney’s disclosure last week that ESPN generated $17.3 billion in revenue last year — 21% of the entertainment giant’s $82.7 billion total — showed that the sport network remains a crown jewel for the company. But ESPN’s standalone financials highlight the urgency for Disney to make an aggressive direct-to-consumer pivot for the legacy network, analysts told TheWrap. ESPN has lost 19% of its pay-TV subscribers since 2018, and sports rights remain its biggest expense at about $9 billion in 2023, Bloomberg Intelligence analyst Geetha Ranganathan said in a Friday note to clients that this cost was up more than 20% from about $7.3 billion in 2022. [Read More]( --------------------------------------------------------------- [Wrap Pro logo] Discover why entertainment executives and professionals rely on the WrapPRO platform daily for exclusive coverage, analysis, deeper reporting, and access to VIP events & screenings throughout the year. [Subscribe Today]( --------------------------------------------------------------- [Facebook]( [Twitter]( [Instagram]( [YouTube]( TheWrap | 2034 Armacost Ave Los Angeles, CA 90025 [Preferences]( | [Unsubscribe]( [LiveIntent Logo]( [AdChoices Logo](