ESPN Chairman Reveals How Important Sports Are For Disney+
Later this week, Disney will be launching a new direct-to-consumer version of ESPN, which will offer its full suite of networks and services directly to fans, along with an enhanced ESPN App that integrates game stats, betting information, fantasy sports, commerce, multiview options and a personalised SportsCenter For You.
The new ESPN streaming service has been designed to give fans more choice, flexibility and access to all of ESPN. These new features and functionality will be available to all fans who watch on the ESPN App on mobile and connected TV devices, whether they subscribe directly or through a traditional pay TV package.
There are two different tiers available to subscribers, Unlimited is the full version with everything, while ESPN+ is going to be rebranded to the ESPN Select Tier, which has a limited amount of content.
To go along with the launch of the new ESPN streaming service, Disney is offering a bundle which consists of ESPN Unlimited, Disney+ and Hulu for a limited time offering of $29.99/month for 12 months with no annual contract.
ESPN content from the new streaming service will be available via the ESPN hub on Disney+ for bundled subscribers, and during a recent interview, Jimmy Pitaro, who is the Chairman of ESPN, revealed how ESPN’s new direct-to-consumer platform fits into Disney’s overall streaming strategy alongside Disney+ and Hulu. He also revealed how important this bundle is to driving subscriber growth and engagement for Disney+.
The ESPN DTC launch complements Disney+ and Hulu perfectly. Each service has its own unique audience proposition, and together they form a powerful portfolio that can meet a wide range of consumer interests. ESPN’s role in that ecosystem is clear — we’re the destination for the most and best live sports rights, paired with world-class storytelling, analysis, and original programming. The ESPN DTC service also opens up exciting opportunities for bundling — whether that’s with Disney+ and Hulu for the incredible value of $29.99 for the first 12 months, or with partners like FOX One and NFL+ Premium — to create even more value for fans. That approach not only drives subscriber growth, it deepens engagement across the Disney streaming portfolio.
He was also explained how they are positioning ESPN’s DTC service in an ever-growing streaming landscape:
We’re launching from a position of incredible strength — both in brand and in rights. ESPN has the deepest and most diverse live sports portfolio in its history, spanning 47,000 live events across the NFL, NBA, MLB, NHL, college sports, Tennis Majors, PGA TOUR LIVE and Golf Majors, UFC, WWE, international soccer, and more. That gives us a truly differentiated product in the streaming market. We’re not trying to be everything to everyone; we’re here to be everything to sports fans. And while making our networks available directly to consumer opens a new distribution path, the traditional cable and satellite ecosystem remains incredibly important to us. We’re committed to walking parallel paths — serving our cable partners while also making ESPN directly available to any fan who wants it. That combination sets us apart in the industry.
Roger’s Take: All of the major streaming platforms are heavily investing into sports at the moment as they’ve realised this is the one area that still brings in huge viewership for live content, which is massively important for advertisers but also to reduce churn of subscribers. Bringing ESPN content into Disney+ is another major step to make the streaming service competitive with other platforms like Netflix and Amazon.
However, Disney has been used to getting additional revenue from ESPN for decades and isn’t ready to just incorporate that content directly into a Disney+ subscription. Eventually, it may need to, but the introduction of the ESPN Unlimited tier into Disney+ is going to help people stay within the app and ultimately stay subscribed.
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