Roberto Machado Noa / LightRocket via Getty Images
- Disney said sports betting is a "very significant opportunity for the company" on Wednesday's earnings call.
- CEO Bob Chapek acknowledged having brand-withdrawal concerns as Disney pursues sports betting partnerships.
- But company research showed that sports betting won't injure the Disney brand, he told investors.
Disney was admittedly worried about potential brand damage that could arise from the media giant's move into sports gambling, Walt Disney CEO Bob Chapek told investors during an earnings call on Wednesday.
But company research showed that betting partnerships would have "no impact" on the family-centric Disney brand, Chapek said, adding that a betting component could actually strengthen the ESPN brand, of which Disney owns an 80% stake.
"It's driven by the consumer, particularly the younger consumer that will replenish the sports fans over time and their desire to have gambling as part of their sports experience," Chapek said. "As we follow the consumer ... we have to seriously consider getting into gambling in a bigger way."
Sports programs have proven to be a "key differentiator" in Disney's streaming ecosystem, Chapek said. The company's streaming bundle includes Hulu, Disney+, and ESPN+, with sports accounting for 90% of "the most-watched telecasts last year."
In 2017, only 46% of Americans believed sports gambling should be legal, according to a Seton Hall Poll. Four years later, the same survey found 80% now support the legalization of sports betting.
"ESPN is a perfect platform for this," Chapek said during the earnings call. "Gambling does not have the cache now that it had, say, 10 or 20 years ago."
source https://www.businessinsider.com/disney-ceo-sports-gambling-betting-wont-hurt-family-brand-espn-2021-11