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  "documentTitle": "The Walt Disney Company (DIS)",
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  "authorName": "Trian Partners",
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      "text": "Given that Disney's plan for ESPN involves products that have yet to be launched, we see two potential paths for ESPN that Disney should evaluate in detail:",
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      "text": "Given the high cost of sports programming, ESPN needs to be broadly distributed or command a very high price point to earn attractive returns. We believe a high-priced sports app with a limited sports offering is a difficult customer proposition; therefore finding distribution / bundling partners with broad platforms is the key to DTC success. Assuming distribution can be de-risked, the Board must insist on a business plan with clear goals and expected returns to avoid the same problems experienced with Disney+ / Hulu",
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      "text": "We believe a viable, shareholder-friendly path forward for ESPN is to harvest cash out of its linear business to selectively reinvest in ESPN+ and higher growth parts of Disney's business (such as Disney+). While ESPN+ has a limited content offering, it does have a subscriber base of 25mm subs today to build on; we believe building ESPN+ gradually by adding more key rights over time makes financial sense and can help maintain ESPN's subscriber base. Alternatively, Disney can further integrate ESPN+ programming into Disney+ / Hulu to drive engagement and broaden the audience for its core service",
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      "text": "1. Move Forward with ESPN Flagship DTC, Ideally With a \"Bundle\" Partner like Netflix or Amazon, After Justifying Distribution Strategy",
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      "text": "2. Scale Back ESPN's DTC Plans and Focus on Maximizing the Value of ESPN+ and the Existing Linear Business",
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      "text": "While we are open-minded, we are skeptical that a flagship ESPN DTC service is a viable business model given rising sports programming costs and the consumption patterns of sports fans.",
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      "text": "Our Nominees Will Insist on a Digital Strategy for ESPN That Has a Clear Path to Attractive Financial Returns",
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