ESPN Chairman Hints at When Fans Might Get Streaming-Only Version of Channel; Offers Update in NBA Negotiations
Ever since ESPN+ was released to the public five years ago, some members have been convinced that the inevitable next step of putting a live stream of its sibling cable channel ESPN on the service was just around the corner. Unfortunately for sports fans, this has not been the case, and to this day the network and its streaming cohort remain distinctly separate entities.
Disney executives, however, have continued to offer hope that ESPN becoming available in full via streaming is more than just a dream. Last year, for example, former Disney CEO Bob Chapek said that a standalone ESPN would be the “ultimate fan offering.” More recently, current CEO Bob Iger called the prospect of offering ESPN as a streaming product without a pay-TV subscription “inevitable,” but stressed that the financial details would have to make sense for Disney first.
Now, ESPN chairman Jimmy Pitaro is doing his part to keep the hope alive. Pitaro spoke with Bloomberg this week regarding the future of ESPN and ESPN+, and once again stated that the company’s goal is to give customers a streaming-only version of ESPN at some point.
“We’re going to get to a point where we take our entire network, our flagship programming, and make it available direct to consumer [DTC],” Pitaro said. “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.”
The current reticence of company officials to lay out a firm timeline for such a move is not difficult to understand. After all, the ESPN linear channel brings in $28 billion in revenue per year for Disney, while ESPN+ lost $400 million in the last fiscal year, according to Bloomberg. Disney charges cable and satellite providers the highest carriage fee of any channel to offer ESPN, and it’s hard to justify risking such a valuable revenue stream in favor of a DTC version of the channel when practically no one other than Netflix has been able to make streaming profitable.
Cable and satellite providers certainly won’t be happy when ESPN does begin offering a fully digital version of itself. A survey from September 2022 demonstrated that 78% of cable viewers rated ESPN as a “must-have” channel, and if it becomes available without a cable or satellite subscription, it will likely accelerate cord cutting even further. A standalone, streaming version of ESPN will undoubtedly cost more than the $9.99 per month that ESPN+ currently runs, but will also be much less than a cable subscription.
Pitaro also offered an update on ESPN’s negotiations with the NBA. The league is reportedly looking to build a package of streaming-only games into its next broadcast rights deals, and judging from Pitaro’s comments, it sounds like his company would jump at the chance to offer NBA games on ESPN+.
“I’m confident we’re going to see eye-to-eye on how to prioritize streaming,” Pitaro said of ongoing discussions with the NBA.
That league’s broadcasting agreements with ESPN and its other partners run out after the 2024-25 season, and recent comments from Iger that ESPN had to be “selective” about pursuing big-ticket sports rights led to speculation that Disney might not be as rampant in its pursuit of the NBA this time around. Pitaro’s comments, combined with recent executive shuffles that seemed to indicate Disney wanted to put its best foot forward in its negotiations with the league, make it seem as if that speculation can be safely put to bed, however.
Without a firm date on when Disney will be offering ESPN as a standalone streaming product, audiences and investors alike will continue to press the company for more details. Some analysts still believe the House of Mouse would do better by spinning off ESPN entirely, though Iger continues to deny any such plans are in his immediate future. Until it decides how to solve its ESPN dilemma, Disney must continue to parse out which events will go to the streamer, and which will remain on linear TV.
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.