As sports continues to dominate TV viewership while the video landscape becomes more fractured, Disney is shaking things up later this year with one of their most prized products, ESPN. Announced in May, Disney will be creating a new DTC (direct-to-consumer) streaming service for their flagship product, simply named “ESPN.” This long-anticipated move marks a major shift in how live sports will be delivered to fans across the country.
What’s Special About This New Offering?
For the first time ever, consumers can pay to watch ESPN’s traditional linear feeds without the need to pay for a cable or satellite bundle. For active viewers of ESPN who may watch less overall TV, as well as cord-cutters and cord-nevers who are increasingly turning to internet-only solutions, this provides a cheaper cost of entry while cutting out the bloat of a traditional cable package. While Disney’s ESPN+ offering has always given people an option to watch exclusive sports content without paying for a cable or MVPD subscription, it has never included access to ESPN’s linear networks.
Plan and Pricing Details
The ESPN DTC service will offer two plans, an Unlimited package that delivers the entire suite of ESPN networks and content for $29.99/month and a Select option that will include ESPN+ and other content but not live feeds of ESPN’s linear networks, for $11.99/month. Both plans will also have discounted annual subscription options as well as bundle options including Disney+ and Hulu. The Unlimited package, which is the highlight and unique offering of the DTC service, will give viewers access to all of ESPN’s linear networks – ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ESPN Deportes – in addition to ESPN on ABC, ESPN+, ESPN3, SECN+, and ACCNX. Existing ESPN+ subscribers will automatically become subscribers to ESPN’s new service, based on their current subscription level. Standalone ESPN+ subscribers get the ESPN Select plan, and Disney+, Hulu, ESPN+ bundle subscribers get the ESPN Select bundle.
What Does This Mean For The Linear TV and OTT Landscape?
Disney’s decision to untether ESPN from the traditional pay-TV bundle marks a seismic shift in the broadcasting landscape. It acknowledges the ongoing decline of cable subscribers and the growing demand for flexible streaming options. For pay-TV providers, this could further accelerate cord-cutting trends, as ESPN has historically been one of the most valuable and popular pieces of the traditional cable lineup. In the OTT space, which has gotten increasingly competitive in the arms race that is sports broadcasting rights, ESPN’s DTC offering represents a legacy provider in sea of new players, such as Apple, Amazon and Netflix. For Disney, however, it represents a bet that ESPN’s brand power is strong enough to attract a dedicated streaming audience on its own and potentially set a new standard for how live sports are delivered in the continuously complex digital age.
What Does This Mean For The Butler/Till?
Disney’s move to bring ESPN direct-to-consumer is a signal that the future of live sports is already here. While details around ad opportunities are still emerging, it’s a development we’re watching closely. If this unlocks access to premium sports inventory at more efficient rates, it could be a win for our clients. At Butler/Till, we’re always looking for smart, forward-thinking ways to help our partners show up where audiences are headed next, and this could be one of them. We’ll continue to keep a close eye on how this unfolds and share updates as more details become available.
Contributors: Dominic Frezza
