Bob Iger, the chief executive of ESPN’s parent company, Disney, has said that the sports broadcaster is adapting to changing market conditions as it copes with a fall in subscriber numbers.
Iger (pictured), providing a quarterly earnings update, said in a conference call that revenue at Disney’s cable networks had dropped by three per cent quarter-on-quarter while operating income was also down three per cent due to ESPN’s performance.
ESPN’s viewership climbed by 15 per cent in the quarter, but a five-per-cent increase in advertising revenue did not offset a drop in distribution revenue.
About 100 ESPN staff members were laid off last week.
“We recognised the early signs of a shift in the industry, and anticipated its impact and adapted quickly to a strategy that responds to evolving markets,” Iger said.
Iger stressed the importance of a shift to OTT platforms, before adding: “We've seen really nice growth, but it's nascent.”
He also said that while Disney does not have plans to distribute a direct-to-consumer ESPN service, “there’s an inevitability to that”.