Disney Names New ESPN President as Company Prepares for Launch of ESPN+

As Disney moves closer to the launch of ESPN+, its new direct-to-consumer streaming subscription product, the company names James Pitaro as president of ESPN

Subscription News: Disney Names New ESPN President as Company Prepares for Launch of ESPN+

Source: ESPN

As Disney moves closer to the launch of ESPN+, its new direct-to-consumer streaming subscription product, the company names James Pitaro as president of ESPN and co-chair of the Disney Media Networks. Immediately prior to the promotion, Pitaro was the chairman of Disney Consumer Products and Interactive Media. He replaces acting chair George Bodenheimer, who will stay on as a consultant through year end.

Prior to joining Disney, Pitaro was vice president and head of Yahoo Media, where he worked to grow Yahoo Sports and Yahoo Music. He was also the vice president of business affairs for LAUNCH Media, Inc. Pitaro holds a bachelor’s degree in economics from Cornell University and a Juris Doctor from St. John’s Law School.

‘Jimmy is a talented and dedicated leader with the right strategic vision, relentless drive and passion for sports required to lead the stellar ESPN team at this incredibly dynamic time,’ said Robert Iger, chairman and CEO of The Walt Disney Company, in a news release. ‘Jimmy forged his career at the intersection of technology, sports and media, and his vast experience and keen perspective will be invaluable in taking ESPN into the future.’

Pitaro commented on the promotion, which is effective immediately.

‘As a passionate and lifelong sports fan, I am honored to be joining the ESPN team during such a pivotal time in its storied history,’ said Pitaro. ‘The appetite for quality sports content across platforms has never been greater, and I am looking forward to working with the talented ESPN team as we continue to redefine the future fan experience.’

Pitaro will lead ESPN and help facilitate the launch of ESPN’s standalone streaming subscription service, ESPN+, which is expected to launch later this spring for $4.99 per month, according to Engadget. ESPN+ will include more than 10,000 live regional, national and international games and events a year to include Major League Baseball, the National Hockey League, the Major Soccer League, golf, rugby, cricket and more. In addition, ESPN+ will have a library of 30 for 30 documentaries. NFL games are not part of the package.

Initially, ESPN+ will be available for iOS, Android, tvOS and Chromecast before expanding to other platforms. This product is separate from the ESPN app which will also be launching soon. Engadget reports the new app will have more personalization options plus scores, highlights, streaming versions of ESPN’s cable broadcasts and podcasts.

News of Pitaro’s promotion comes just a month after The Walt Disney Co. reported its quarterly earnings for the first fiscal quarter ended December 30, 2017. Here are a few highlights from that financial report:

  • Diluted earnings per share were $2.91, an 88 percent increase over the $1.22 earnings per share reported for the same period in the prior year.
  • The company received a one-time net tax benefit of $1.6 billion from the new U.S. tax legislation.
  • Total revenue for the quarter was $15.4 billion, a 4 percent increase year-over-year.
  • Media Networks, including ESPN, generated $6.2 billion of revenue during the period.
  • Though Media Networks revenue was flat, ESPN revenue declined slightly due to lower advertising revenue due to decreased number of impressions, lower rates and lower average viewership.
  • Disney had other income of $53 million from the sale of property rights.
  • Net income was $4.4 billion, a 78 percent increase year-over-year.
  • During the quarter, Disney agreed to buy Fox’s TV, entertainment and cable networks for $52.4 billion.

Insider Take:

Subscription News: Disney Names New ESPN President as Company Prepares for Launch of ESPN+

Source: Disney

While Disney had growth in its Parks and Growth revenue during its first quarter, Media Networks revenue was flat and Studio Entertainment and Consumer Products & Interactive Media revenue were down. ESPN viewership is also down. Will Pitaro be able to reverse ESPN’s declining viewership and capitalize on streaming subscription service opportunities? It is plausible that cord cutters and cord nevers might be interested in an ESPN+ subscription, provided ESPN offers unique content and an engaging user experience. This could be a good avenue for Disney to explore and test, particularly before it moves to creating its own stand-alone subscription for Disney fans.

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