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In an absolute blitz of news this week, the cable sports institution ESPN showed how it is fully transforming into a streaming-first player.
The network inked several new deals with the NFL, announced the imminent launch of its all-inclusive streaming service, and added new wrestling programming from the WWE to entice subscribers.
The overarching goal is to maintain and grow ESPN as a must-have media brand.
Here are the headlines point by point:
• ESPN will turn on its eponymous direct-to-consumer streaming service on August 21. It will cost $29.99 a month. The service will include ESPN’s full suite of networks — encompassing some 47,000 live events each year — providing a new option for people who don’t already get ESPN through a cable package.
“We think we’re going to pick up a lot of people who are either cord-cutters or cable-nevers,” Disney chief financial officer Hugh Johnston said on CNBC.
• ESPN will gain an even closer relationship with the NFL through a complex deal that includes ownership of the NFL Network and new licensing deals. The NFL will own a 10% stake in ESPN, pending regulatory approval by the Trump administration.
“This represents a major win for ESPN on multiple fronts,” analysts at MoffettNathanson said Wednesday. Pro football remains the most valuable programming on American television, and ESPN is “increasing its inventory of games.”
The NFL is holding back some of its games to sell to other media companies, however.
• ESPN “will own broad rights to RedZone, including the trademark,” the network’s own story about the deal notes. This means it could apply the addictive RedZone format — a “whip-around” simulcast of multiple games — to other sports.
The NFL will continue to own and produce the existing RedZone channel, though.
• ESPN will also stream special WWE events like “WrestleMania” and “Royal Rumble” for the next five years, giving people another potential reason to sign up.
The battery of announcements show ESPN’s determination to expand its own distribution channels and hold the rights to premium content.
It’s part of a broader years-long effort by ESPN’s parent, Disney, to control its destiny by owning its relationships with consumers (rather than relying on intermediaries like cable companies).
In other streaming news on Wednesday, Disney said that it will be “fully integrating” Hulu with the Disney+ app in the next year, streamlining the number of entertainment apps it has.
Disney CEO Bob Iger said on a Wednesday morning investor call that the lines between streaming and old-fashioned TV distribution, known as linear, are fading away.
“We’re asked a lot about linear versus streaming,” Iger said. “We’re at a point, given the way we’re operating our businesses, where we don’t really look at being in the linear business and the streaming business: We’re in the television business, and what we’re doing is we’re giving our customers or our viewers a chance to watch our programming… wherever they want.”
“If you’re watching ABC primetime shows on the linear channel, great,” he said. “Through a multi television provider, fantastic. Or if you want to go to a streaming and watch it on the Disney+ and Hulu app, that’s fine as well.”
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