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Disney's Live Sports Bet Pays Off as Revenue Surges
Disney's CFO Hugh Johnston sees live sports as a critical sector for driving customer lifetime value. He stated that live sports are 'just on fire,' with people and advertisers unable to get enough of it.
The revenue from Disney's Sports segment, primarily ESPN, grew 4% year over year in fiscal Q3, driven by subscription and affiliate fees and advertising. This divergence helps explain why Johnston is leaning into sports as general entertainment advertising softens.
Johnston cited 'creative deals' with the NBA, NFL, MLB, and NHL, giving ESPN its 'base load' of marquee content through 2029 or 2030. However, Disney chose not to obtain rights to every sports property, citing Formula 1 and UFC as examples that had become too expensive.