ESPN's new subscription service is on its way as Disney invests in livestreaming

LOS ANGELES — Disney is breaking into the subscription streaming service world with the launch of an ESPN-branded "multi-sport” offering.

To help push out the service, Disney confirmed Tuesday it has purchased of 33 percent of Major League Baseball’s streaming technology business BAMTech for $1 billion. Reports of the investment first surfaced in June.

"Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company," Disney CEO Bob Iger said in a statement. "We look forward to working closely with BAMTech as we explore new ways to deliver the unmatched content of The Walt Disney Company across a variety of platforms."

BAMTech, now reportedly valued at around $3 billion, is known for powering streaming services for a handful of sports and media companies including MLB.tv, Time Warner’s HBO Now, WWE Network, Sony’s PlayStation Vue internet TV service, the PGA and Glenn Beck’s TheBlaze.

As part of the deal, BAMTech was separated from MLB’s broader digital business, MLB Advanced Media

Disney said its new direct-to-consumer service will offer content from BAMTech and ESPN, including live regional, national and international sporting events. However, current content on ESPN’s linear networks will not be part of the service.

This is Disney's latest digital investment, following the $500 million acquisition of digital entertainment company Maker Studios in 2014. The entertainment giant also invested $400 million into media company Vice.