ESPN’s upcoming highly anticipated direct-to-consumer (DTC) streaming app just got a huge update. The app, which has the working title “Flagship,” marks a significant shift in its sports media strategy for Disney. In a recent investor call, Disney CEO Bob Iger gave an update on the future of the app and what subscribers should expect.
The official name of the standalone ESPN app will be announced next week, and the company will offer bundles to entice subscribers. To give users a comprehensive sports streaming experience, the app is set to feature live games, studio shows, and exclusive content. It will also include innovative features such as integrated betting, fantasy sports, e-commerce, and personalized content, setting it apart from traditional sports broadcasting found on linear TV networks. If you’re an ESPN linear TV subscriber, you’ll get automatic access to the DTC app, according to Iger.
“First of all, to the last point, if you are a subscriber of linear ESPN, you will automatically get what I know we’ve been referring to as ESPN flagship. By the way, it will not be called that. And next week, Jimmy Pitaro plans to reveal not only the name, but will also talk about our pricing strategy. But the plan would be to basically be somewhat agnostic from a subscriber perspective, so that we can still do our best to preserve the multichannel ecosystem, but at the same time, obviously want to grow our DTC business,” said Iger.
Even with the launch of the app, Disney+ and Hulu consumers will still have access to select live sporting events, so the company can upsell them on the DTC service, per Iger. The yet-to-be-named streamer will reportedly sport a $25-$30 monthly price tag and give subscribers access to all of ESPN’s linear TV networks and ESPN+. As the launch date for the ESPN DTC app nears, Iger stated that his company plans to be “really smart” about bundling, and the experience will be “fully integrated” for bundlers.
As for content, the Flagship app brings all of the sports under ESPN’s umbrella to one place. That’s thousands of college sports, including basketball, football, and baseball, NFL, NHL, and NBA games, boxing, MMA, the PGA Tour, and many others.
Although the network’s exclusive negotiating window with the UFC has expired, Pitaro stated last month that ESPN remains interested in trying to figure something out. Additionally, this year, ESPN has declined to renew its rights to Formula One beyond 2025 and ended its relationship with MLB after 35 years. Unless the leagues and the networks come to an agreement with a new set of deals, the ESPN DTC app would be missing content from some of the most popular sports.
“Streaming remains a key priority and a core growth platform for Disney. And as we move forward, our improvements in the product will continue to enhance the user experience, increase engagement and reduce churn, thereby enabling us to grow the strategic business at an accelerated rate over time,” Iger said during the investor’s call.
Disney’s streaming portfolio has had its ups and downs so far this year. Hulu + Live TV lost 200,000 subscribers, but Disney+ gained $1.4 million in the first quarter of 2025. With the ESPN DTC app expected to launch later in the fall, Iger’s company continues its focus on “building for tomorrow, as much as it is on managing for today,” while navigating a challenging media industry as consumer habits continue to evolve.
Credit/Transcript: Seeking Alpha