Disney Is Winning This Summer From The World Cup
The Walt Disney Company owns, or is a majority stakeholder in, multiple brands such as A&E, ABC, and, most importantly this summer, ESPN. As Americans are more and more interested in soccer during this World Cup — which is proven by record viewership numbers — ESPN continues to gain from this influx of viewers. Each of the three U.S. games have set an ESPN soccer record, starting with the game with Ghana, then Portugal, and finally, the 10.8 million record set by the U.S./Germany game.
Disney, through ESPN, paid $100 million for the broadcasting rights for the 2010 and 2014 World Cup tournament. Once again, Disney made a good bet, as these broadcasting rights continue to bring record viewers to the channel. With soccer viewership on the rise, having increased 22% from the 2006 to 2010 World Cup, this was a smart move for Disney, which has seen the trend continuing to grow. The company is looking to use this World Cup to gain long-term market share for its ESPN network.
While Disney is winning this summer on its bet with the World Cup, what will happen when the tournament ends? Disney’s $100 million investment for this was a steal compared to the nearly $250 million that Twenty-First Century Fox has paid for the same privileges during the next two World Cup events. How will the investment go for Fox? investors will have to wait and see. But Disney is winning on much more than just the World Cup; here’s why Disney is a long-term winner far beyond this summer.