Disney will roll out standalone ESPN streaming platform in fall 2025

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Disney (DIS) CEO Bob Iger officially announced when the company's over-the-top (OTT) ESPN streaming service will launch: fall 2025.

ESPN added in a post on social media the service will launch before the football season kicks off next year.

The development comes after the news broke that Disney's ESPN will team up with Warner Bros. Discovery (WBD) and Fox (FOXA) to launch a new sports streaming service, which is expected to debut sometime this fall.

Iger confirmed both developments on the company's earnings call on Wednesday.

"Ultimately, our mission is to make ESPN into the preeminent digital sports brand, reaching as many sports fans as possible and giving them even more ways to access the programming they love in whatever way best suits their needs," Iger said Wednesday.

Disney is still seeking strategic partners, through a joint venture or part ownership, for ESPN's OTT service. Disney has reportedly engaged in talks with the NFL regarding a potential equity stake.

Disney stock rose as much as 8% late Wednesday after the company reported narrower-than-expected losses in its entertainment division.

Analysts and media watchers have cautioned that ESPN's full transition to streaming will be a difficult journey. In particular, concerns have risen when it comes to consumers footing the bill for an additional service rather than watching sports as part of the cable bundle.

But the company's former streaming chief believes sports fans will be willing to pay — even if the price tag is higher than what most platforms currently cost.

"People have always paid a lot for sports," Kevin Mayer, who now runs Blackstone-backed entertainment startup Candle Media, said at the Yahoo Finance Invest Conference late last year. "They didn't always know it because back in the day when 95% of this country had paid TV bundles, probably 40% to 50% of the cost of that bundle was sports programming. ... [But] now they can do so explicitly."

Mayer, who is currently serving as a strategic adviser to Iger, said his former boss is "definitely most focused on making sure that ESPN, a company that he really believes in strongly, is well positioned for the future."

Disney hasn't disclosed any details regarding pricing for the ESPN service, although — similar to the joint venture's reported price at or above $40 a month — analysts have estimated it would need to cost a minimum of around $30 a month in order to break even.

Mayer, however, insisted that $30 a month is an "entirely reasonable price to get the full suite of sports that ESPN would offer."

FILE - This Sept. 16, 2013, file photo shows the ESPN logo prior to an NFL football game between the Cincinnati Bengals and the Pittsburgh Steelers, in Cincinnati. ESPN, Fox and Warner Bros. Discovery announced plans on Tuesday, Feb. 6, 2024 to launch a sports streaming platform in the fall that will include offerings from at least 15 networks and all four major professional sports leagues. (AP Photo/David Kohl, File)
Disney officially announced when its over-the-top ESPN streaming service will launch: fall 2025. (David Kohl/AP Photo, File) (ASSOCIATED PRESS)

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at [email protected].

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