ESPN Chairman Gives Updates on Transition to Streaming, Says Linear Channel Isn’t Going Anywhere
Cord-cutting sports fans have dreamt for years that they’d be able to open the ESPN app and start streaming the same channel they could watch with a cable or satellite subscription from anywhere at any time. Their hopes reached a fever-pitch in May, when reports began to circulate that ESPN’s parent company Disney was speaking with cable providers and sports leagues about making the dream a reality.
ESPN chairman Jimmy Pitaro spoke to CNBC on Tuesday, and confirmed reports that came out in recent weeks saying Disney had also been speaking with potential strategic partners for a streaming-only version of the ESPN family of channels. The reports outlined that Disney had been discussing partnerships with various major sports leagues, but Pitaro declined to get that specific with CNBC.
“I will emphasize the fact we believe there are parties out there that can help us on the content side,” Pitaro said, avoiding naming who those potential partners might be.
He also reiterated that a cable-free version of ESPN is a question of when, not if, and confirmed that users who stuck with pay TV would still have access to the linear channel as they always have. Pitaro posited there was “a perception in the industry” that once ESPN went to a streaming format, it would leave cable and satellite behind, but this is not the case.
Pulling ESPN from linear TV would likely be the final blow to a reeling pay-TV industry. A survey from last fall indicates that 78% of cable viewers rate ESPN as a “must-have” channel to justify subscription costs. If it were no longer available as a traditional TV channel, cord-cutting would accelerate at an unprecedented rate.
The timeline for when users can expect ESPN to launch a streaming version without the need for a cable subscription is hard to nail down, mostly because it’s such a monumental shift for Disney to make. Its streaming segments lose millions of dollars every quarter, but the company sees the writing on the wall for traditional TV, which is why it has indicated it’s open to selling off linear assets including ABC.
A streaming version of ESPN has the potential to change the sports broadcasting world entirely, especially if it partners with major sports leagues in the venture. But there’s a lot of legwork on Disney’s part still to be done before it becomes a reality, and fans will have to stay patient for a bit longer.
ESPN+
ESPN+ is a live TV streaming service that gives access to thousands of live sporting events, original shows like Peyton’s Place, the entire library of 30 for 30, E:60, The Last Dance, as well exclusive written analysis from top ESPN insiders. Sports available on ESPN+ include NFL, MLB, NHL, UFC, College Football, F1, Bundesliga, PGA Tour, La Liga, and more.