ESPN has begun concretizing its plans to offer its main channel on a streaming platform.
ESPN has teased at the idea of committing to a direct-to-consumer service, but have never shown active signs -- until now. The worldwide leader in sports and its parent company, Disney (DIS), are now beginning the shift with a project that has the internal code name ‘Flagship,’ according to a report by the Wall Street Journal.
No timeline has been given for when the shift will officially begin. The company will also reportedly continue to offer its TV channel.
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ESPN Chairman Jimmy Pitaro hinted earlier in the month that it was only a matter of time before the company was going to make the commitment to streaming.
“We’re going to get to a point where we take our entire network, our flagship programming, and make it available direct to consumer,” Pitaro told Bloomberg. “That’s a ‘when,’ not an ‘if’….We’re only going to do it when it makes sense for our business and for our bottom line.”
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ESPN’s move could have major implications for the already declining cable television industry. ESPN and its channels have been one of the main drivers of the cable bundle and providers know it with the Disney brand reportedly receiving around $9.42 per subscriber from cable providers while other channels average about 49 cents, according to S&P Global Market Intelligence.
Live sports have also continued to be one of the biggest reasons why consumers have maintained their cable subscriptions. However, many have chosen to move to streamers who are investing billions in sports rights believing it would drive consumers behind the paywall.
Amazon (AMZN) Prime’s $1 billion per year acquisition of the NFL’s Thursday Night Football is a prime example, with the company bringing in 11.3 million viewers per broadcast despite being behind the paywall according to Nielsen and Amazon. The NFL also helped the company achieve some record subscriber growth marks because of TNF.
ESPN entered the streaming world in 2018 when it launched ESPN+. Despite garnering over 25 million subscribers already, the service has yet to offer access to the main ESPN channels which air some of the most popular games such as NFL Monday Night Football and the NBA Playoffs.
