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Disney Bets On Online Streaming Services For Sports, Acquires Minor Stake In BAMTech

By Ray Pilares , Aug 10, 2016 04:20 AM EDT
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Walt Disney just made a move that aims to make the company's role in major sports even bigger. The company announced that it is taking a minority stake in BAMTech. According to CNBC, Disney will be spending $1 billion which would give it an interest of around 33% in the spinoff of MLB Advanced Media.

Sports is still one of the biggest things that people tune in to today. That is a fact that is not lost on Disney. The company already owns ESPN, which is one of the biggest players when it comes to sports broadcasts. This latest move aims to make Disney an even bigger name in sports media today.

The plan is for ESPN to work with BAMTech in creating a subscription streaming service for multiple sports. That would include national and even international events.

Because of the transaction, BAMTech, which has been setting standards for streaming services, will be separated from MLB Advanced Media. The payments for the deal would be coming in two installments.

Disney's upcoming deal has nothing to do with the DirecTV's over-the-top bundle. That offer aims to bundle several Disney channels under different packages for subscription.

The purchase aims to take advantage of the MLB Advanced Media's business plan which allows people to watch popular cable channels without being subscribed. While Disney aims to maintain a good relationship with cable companies, it aims to develop a stronger connection with its audience. By going directly to the consumers, the company also aims to gain more revenue because of their sports packages.

BAMTech is seen as an industry leader when it comes to direct to consumer streaming, commerce management and analytics. Forbes reports that BAMTech has over 7.5 million subscribers and that the investment of Disney would allow it to grow even more rapidly.

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