ESPN+ streams more live sports than any other platform, which costs parent company Disney billions of dollars annually. But that continued push has been the key factor in Disney’s streaming business becoming profitable earlier than anticipated.

On Wednesday, Disney reported earnings from its fiscal third quarter, which ended June 29. Overall, the company brought in revenue of $23.2 billion, slightly higher than the $23.1 billion Wall Street analysts predicted.

But the unexpected good news for Disney came from its direct-to-consumer unit—Disney+, ESPN+, and Hulu—turning a profit for the first time. Those streaming services combined to post a surplus of $47 million. But it was a $66 million profit from ESPN+ that helped offset a $19 million loss from Disney+ and Hulu. 

Disney said it originally forecast its overall streaming unit to become profitable next quarter. “The ad market is really, really strong and healthy for us,” Hugh Johnston, Disney’s CFO, said on the company’s earnings call. “And a lot of that is a product of the fact that we have live sports.” 

On Tuesday, Disney announced another round of price increases coming to its streaming services in October, with ESPN+ jumping up $1 to $11.99 per month. Disney expects its streaming business, including ESPN+, to remain profitable in the fourth quarter.

Sports for Everyone

Disney still expects to launch an enhanced stand-alone ESPN flagship streaming service in the fall of 2025, with a price yet to be announced. That will be separate from ESPN+. 

Venu Sports—ESPN’s joint streaming venture with Fox and TNT Sports parent Warner Bros. Discovery—is still on track to launch this fall. However, three Democratic senators have asked the Department of Justice to investigate and possibly halt Venu, speculating that it may violate antitrust or telecommunications laws or regulations.

Beyond that, in December, the Disney+ app will start featuring an ESPN tile to promote live sports programming to that service’s users. “We obviously are investing significantly in all directions because of the value that it creates and also because of the value that it represents to our future in streaming,” said Disney CEO Bob Iger.

ESPN’s variety of long-term media-rights deals across properties like the NFL, NBA, and college football remain key to Disney’s sports plans. “It secures our ability to bring ESPN in the digital direction,” Iger added.

ESPN’s Future

Iger also addressed Disney’s ongoing efforts to potentially sell an equity stake in ESPN to a league like the NFL or NBA. 

“I know I’ve sounded like a broken record because I’ve talked about strategic partnerships for ESPN over the last number of quarters,” Iger said. “The only thing I can say is, believe it or not, we’re still having conversations about it. We thought and continue to believe there may be opportunities to partner with others, particularly on the content side. And that’s why we’ve continued to explore it.”

The NFL has widely been seen as a likely partner, as it continues to evolve its own media division, which includes the NFL Network and NFL+ streaming service.

Noah Lyles (above) is headed to the finals of the 200-meter sprint after placing second in his semifinals heat.

Despite not winning his heat, he is still the heavy favorite to win the 200-meter sprint in Paris since he is a three-time world champion in the event. Lyles also placed second in his semifinal heat in the 100-meter event before taking home gold in the final.

With a win Thursday, the U.S. track star can become the first sprinter since Usain Bolt in 2016 to take gold in both the 100- and 200-meter races, known as the prestigious “double.” 

Lyles solidified his spot as one of the most marketable Olympians after winning the 100-meter sprint Sunday. But the Adidas-backed sprinter declared he wants a signature shoe, an accomplishment saved for some of the top athletes in major sports, including Bolt. Achieving the “double” would improve Lyles’s case, especially given his marketable, albeit polarizing, personality.

“I want my own shoe. I want my own trainer. I’m dead serious.” Lyles told reporters in Paris. “I want a sneaker. There ain’t no money in spikes. There’s money in sneakers. And even Michael Johnson didn’t have his own sneaker.”

Sponsorship Restrictions

Lyles was direct about his desire for a signature shoe, but he never once mentioned Adidas during his press conference.

While athletes are allowed to secure personal sponsorships anytime during the Games, the IOC’s Rule 40 severely limits the amount of public interaction Olympic athletes can have with any partners not sanctioned by the Olympics for a particular event or team—like Adidas, in this case.

An example of how granular Rule 40 can be is that an athlete can thank each personal sponsor only once during the entirety of the Games.

“During the Games Period, you may provide one simple ‘thank-you’ message to each of your Non-Olympic Partner personal sponsors,” the Rule 40 FAQ states.

Nike is also the national team sponsor for the U.S., which is why Lyles sports the Swoosh on his tracksuit despite wearing Adidas racers.

New Heights

A signature shoe would be another step in Lyles’s journey to grow and transcend the sport.

Lyles was the main subject of the Netflix docuseries Sprint, released last month, and said it was “amazing” in giving fans a deeper look into track and field. But he hopes the sport can amass attention beyond the Olympics.

“I want to see a continuation of the ability to take advantage of moments for our sport,” Lyles said. “This needs to be accessible because this is a world sport, so we need to be able to show it to the world.”