Sports betting usa 2022
paragrBut the company’s research found that betting partnerships would “have no impact” on Disney’s family-centric brand, Chapek said, adding that the betting component could strengthen the ESPN brand, in which Disney owns 80% of the shares. Chapek said “sports betting is a very important opportunity” for Disney, and the company is “aggressively” marketing it through its ESPN brand. ESPN has suffered as millennials keep disconnecting cables and ESPN + streamers like Disney + continue to lose money. Gambling can be a profitable way for Disney to attract young sports enthusiasts.
According to reports, ESPN is negotiating with sports betting professionals including DraftKings and Caesars Entertainment to license its famous name for up to $3 billion. Although ESPN, like many media companies, has expanded sports betting content on broadcast and digital platforms through cooperation with sports betting, licensing the brand to betting companies will open up new areas. Highlights Disney plans to license the ESPN brand to sports betting platforms such as DraftKings in exchange for marketing expenses on their platforms. Although ESPN has not yet entered the gaming industry, competitor Fox Sports has already done so through Fox Bet.
While competitor Fox Corp. launched its own online betting site Fox Sports and bought the media and betting company Travis Clays, OutKick, ESPN is making its biggest leap into the fast-growing world of sports gambling. … Disney CEO Bob Chapek called sports betting a very important opportunity for the company, adding that its sports streaming platform ESPN is the perfect place to do it. Referring to Disney’s fourth-quarter results for the period ending September 30, Chapek said the company will expand into the sports betting market through its ESPN platform. In response to analysts’ questions, Chapek also said Wednesday that the company is looking to penetrate the gambling industry.
Disney, which owns ESPN, has conducted “substantial research” and does not believe that engaging in the betting business will harm the Disney brand, he said. But the company’s research found sports betting wouldn’t hurt the Disney brand, he told investors. Disney CEO Bob Chapek called ESPN “the ideal platform” for Disney to expand its sports betting operations. The further development of the gambling market offers exciting revenue opportunities for Disney and ESPN as more and more US states adopt legal sports betting.
According to Disney research, gambling won’t hurt the Disney brand, but it will strengthen ESPN. This actually reinforces the ESPN brand when you have a betting component and does not affect the Disney brand. This actually reinforces the ESPN brand when you have a betting component and does not affect the Disney brand.
ESPN has incorporated gambling and betting lines into some of its studio shows, and even tried out betting-themed shows. But he did not launch his own betting company like Fox Bets and OutKick, which meant managing the winner’s spending and raising funds. This was some of the first sports media websites that actively entered the gambling industry. ESPN collaborated with Rush Street Interactive to become a potential betting partner for Action Network and analytics company Eilers & Krejcik.
Both offerings include collaborative link integration on ESPN’s digital platforms that allow fans to bet on sports from Caesars Entertainments sports betting partner William Hill and DraftKings. The deal could take the form of a multi-year deal in which platforms would be allowed to use the ESPN name for marketing and possibly their bookmakers. The deal will give the selected partner the opportunity to use the ESPN name for branding purposes and potentially rename the bookmaker after the sports TV network.
Earlier this year, it was reported that the network had been in talks with gaming companies including Caesars and DraftKings to use the $ 3 billion ESPN brand. However, no mention was made of a possible acquisition associated with this effort. It looks like Disney-owned ESPN is trying to get some of this action. While the gambling connection was evident from the programming of broadcasting group ESPN, this is the first time Disney has openly detailed plans to expand beyond the Marvel and Star Wars franchises into the world of sports gambling.
To be sure, according to Josh Swissman, founding partner of the Strategy Organization, Disney has had a hand in sports betting in the past couple of years. In addition, Disney has a five-year rights agreement with the NFL and has acquired the rights to stream Monday Football games, making it an ideal place to capitalize on the sport’s explosive growth. But sports betting is entertainment, and today Disney is a sports entertainment company, at least since it acquired a large stake in ESPN.
The same cannot be said for ESPN, the Disney sports network. ESPN has made a name for itself by providing sports results and analyzing the sports business and culture.
It’s clear that attitudes (and laws) towards sports gambling have changed in recent years, and networks and leagues welcome sports betting with open arms – you can’t watch more than three commercials during an NFL game. This fall, without seeing an advertisement for sports betting. Former NFL manager and current NBC analyst Tony Dungi criticized the NFL for encouraging sports betting – the league is poised to raise $ 270 million from its partnerships this year. However, attitudes towards sports betting in the United States are changing: polls and studies show that adults do not have the negative attitudes towards gambling that have occurred in past years.
Research firm LightShed Partners believes that Disney should create ESPN and merge it with a gaming company. As LSR pointed out in July, there is no guarantee that ESPN will succeed. Sports betting will give the company the opportunity to reach younger, sports-conscious audiences, which is why entering the market is part of the ESPN plan. According to a recent Wall Street Journal report, the entertainment giant has held talks with Las Vegas-based Caesars Entertainment and sports betting giant Draftkings Inc. (DKNG).
In recognition of their growing popularity, The Walt Disney Company (DIS) plans to license the brand to its sports network, ESPN, for no less than $ 3 billion. Promotional money from sports betting platforms will help Disney increase the profits of its streaming platform ESPN Plus and ease the growth pressures of its linear cable counterpart. Disney doesn’t seem to be in a rush to transition to the streaming model for its sports network cash cow. ESPN + has 11.5 million subscribers, fewer than other Disney streaming platforms, and the lack of betting content is considered a contributing factor.
At the end of the second quarter, Disney had nearly 174 million subscribers to its services, 14.9 million on ESPN +. Disney owns 80% of ESPN, and its sports segments were a bright spot amid a falling quarter with falling revenues. “The Walt Disney Company has determined that the adoption of sports betting on ESPN will not negatively impact its core brand,” said Bob Chapek, CEO of the entertainment giant this week.
Disney is hoping sports betting is fueling its entertainment business as streaming slows down. Sad Baby Yoda … Investors didn’t sing “Hakuna Matata” after Disney’s quarterly reports.
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