Disney, the global entertainment giant, acquires 42% stake in BAMTech, the streaming infrastructure provider, at a valuation of $3.75 billion. After the deal, Disney now owns 75% in BAMTech courtesy to its 33% stake acquisition last year for $1 billion. BAMTech powers streaming for MLB, HBO, NHL, WWE, and now, Disney’s and ESPN’s upcoming streaming services. Disney’s quick acquisition of the streaming startup indicates that consumer adoption of streaming services over traditional TV is moving at a much more rapid pace than perhaps expected.
BAMTech itself is a spin-out from MLBAM (MLB Advanced Media), MLB’s digital media business. MLBAM operates the official website at MLB.com and related properties, as well as the popular MLB At Bat mobile application, among other things. Video streaming, however, became such a big business that BAMTech was approved to become its own entity back in August 2015. Though Disney doing a streaming service is huge news, it’s not the first time the company has invested in a digital delivery space. It has its own Disney Movies Anywhere application that lets it sell its content direct to consumers for viewing on any device. And it had considerable experience in streaming business with the limited launch of its subscription video platform DisneyLife back in 2015.