ESPN Streaming Platform Could Replace Regional Sports Networks in Offering Local Games
ESPN Streaming Platform Could Replace Regional Sports Networks in Offering Local Games
Disney CEO Bob Iger said the streamer would have the technology to stream local games in-market, but that it would avoid overly risky ventures.
The more details are revealed about the ESPN streaming platform that Disney is working to launch, the more ambitious the project seems. The company wants multiple partners to help it bring the ESPN direct-to-consumer (DTC) service to market, and is aiming to launch by 2025.
- Disney CEO Bob Iger told Wall Street analysts this week that local broadcasting of games could be a possibility for the ESPN streamer.
- Iger said the platform could do “basically what RSNs are doing,” but cautioned that Disney would be risk-averse in pursuing local rights.
- MLB, the NBA, and NHL could all be looking for new partners for their local rights following the 2024 season.
Disney’s Getting Serious About Streaming
Disney’s fiscal fourth-quarter earnings report was its most consequential in quite some time. The company was able to announce a subscriber increase for Disney+ after three straight quarters of declines, and CEO Bob Iger outlined plans for the merger of Disney+ and Hulu onto a single app next month during a conference call to discuss the earnings report with Wall Street analysts.
In that same call, Iger had the chance to discuss the ongoing plans for Disney’s launch of its ESPN streaming service. When asked whether the potential existed to offer local games on the streamer in light of the collapse of the regional sports network (RSN) market, Iger confirmed that was something the company was looking into under the right circumstances.
“Regarding local sports, the technology that we will have for ESPN DTC will give us the ability to provide local sports in a pretty robust way, basically what the RSNs are doing,” the CEO said. “But we’re not really aiming to do so by taking on significant risk. So if we can find the right kind of business arrangements and partnerships, I think we’ll look very seriously at providing local sports as part of the platform. But again, not if it results in us taking on too much risk.”
Which Leagues Could ESPN Partner With to Offer Local Games?
The teetering RSN market does indeed leave opportunities open for Disney to pursue local broadcasting rights to major league teams. For example, Diamond Sports Group, the company that owns and operates Bally Sports RSNs, recently agreed to a deal with the NBA to broadcast games locally though the end of the current season, then send those rights back to the league. It is working on a similar deal with the NHL and has proposed a similar arrangement with MLB.
Disney has already expressed reported interest in the NBA’s local rights if they were to become available this season, and it has longstanding relationships with the NHL and MLB. In fact, it already holds the streaming rights to the NHL’s out-of-market games package NHL Power Play, which it streams on ESPN+.
The NFL has never made use of RSNs, but it too could send local rights to the new ESPN streaming platform. NFL+ currently streams all in-market games for users who are willing to watch on their mobile devices only, and reports indicate there have already been discussions between Disney and the league about migrating NFL+ onto the new ESPN streaming service.
The company got clear proof that an ESPN streaming platform can be successful this week. The ESPN+ streaming service, which offers plenty of live sports but does not include a stream of the ESPN linear network or its sibling channels, gained 800,000 subscribers in Disney’s most recent fiscal quarter. A service that incorporates the full ESPN offering will likely cost triple the $10.99 monthly subscription fee of ESPN+, but the subscriber additions still indicate there is hearty demand for ESPN products via streaming.
All of the top major leagues could be potential in-market partners for ESPN, and each should seriously consider signing up with the platform. ESPN is arguably the most recognizable brand in sports broadcasting, and though its transition to DTC won’t be without its bumps, it seems like a good bet that the platform will eventually be one of the top ways to access live sports in the U.S.
ESPN Select
ESPN Select is a streaming service that replaced ESPN+ and provides access to live NHL, MLB, and MLS games, PGA Tour Golf, international sports events, ESPN original programming, and a complete archive of “30 for 30.” Find out our review of the service and how to start streaming ESPN Select.