00:00Geetha, perhaps something that's been in the works for a while, but what is the logic behind this arrangement between the NFL Network and ESPN?
00:09Yeah, thanks, Dani. So this has been, as you just said, has been going on for a while.
00:13What this really does and why this is so good strategically from Disney's standpoint is it really kind of future-proofs ESPN's business.
00:21So obviously ESPN is the dominant sports property, but there is so much of competition that it faces right now, not just from other media houses like Comcast, NBC, but also from the tech players.
00:33Think on Amazon, think Netflix, think Apple.
00:36And so really what this does is the NFL obviously has media deals right now with all of these players, including Disney, including CBS, Fox.
00:44But they do have this opt-out clause that is this huge overhang, which allows them to get out of their deals after the 2029-2030 season.
00:56What this really does is it ensures that ESPN will probably have first pick or it definitely protects their rights in the event that the NFL decides to opt out of those deals with any of their other media partners.
01:11So I think it's a really good way for Disney to definitely future-proof their business with one of the most well-known and the most popular franchises in terms of sports.
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