Could Big Tech Drive ESPN Out of Business?
Once the go-to spot for sports fans, ESPN may now be losing its lead. Big tech companies are minting big deals to scoop up sports rights and the fans that come along with them.
Disney's (NYSE: DIS) ESPN is facing new challengers from Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). These big tech behemoths may not seem like your traditional sportscasters, but they're all jumping into the bidding game for sports rights, content, and talent. This heightened competition comes at a time when ESPN is facing pressure from increased cord-cutting and a weakening advertising market.
Former Disney CEO Bob Chapek fiercely defended the importance of ESPN as part of the overall Walt Disney business. Current CEO Bob Iger - the former helmsman who recently returned to again lead the company - was a strong defender of ESPN during his first term. But with the shifting environment, can Iger still make ESPN work?
Source Fool.com
