CNBC’s Jim Cramer told TheStreet.com that Disney’s reorganization plan announced this week is writing on the wall for ESPN. “I think it’s really about getting rid of ESPN,” Cramer said of the plan to accelerate a direct-to-consumer strategy. The main focus for Disney going forward will be streaming, streaming and more streaming.
The focus to base the company squarely on streaming and Disney+ has terrestrial ESPN in a tough spot within a company that just announced it will shift away from traditional methods of content distribution.
“There is a belief we’re saturated in sports,” Cramer added. “That ESPN is no longer integral.”
“ESPN used to be this unbelievable thing, and now it’s just a really expensive thing they are having trouble monetizing. ESPN is no longer the precious place that it once was.”
The CNBC host claims that distribution platforms such as MLB TV and NBA TV have “bastardized” sports viewing.
OutKick reported earlier this month that ESPN is bracing for major cost cuts and possibly hundreds of layoffs.