Disney is supersizing ESPN for streaming with NFL, WWE
Illustration by Reagan Hicks and Nick DeSantis / Getty / Shutterstock / The Current
Disney is bolstering ESPN’s position as the premier sports streaming destination, announcing new deals with the NFL and WWE just ahead of the Aug. 21 launch of its new direct-to-consumer service, priced at $29.99 per month.
First up: ESPN is acquiring NFL media assets, including NFL Network and RedZone, and the league takes a 10% stake in ESPN.
Disney CEO Bob Iger lauded the deal during Wednesday’s earnings call, noting that the NFL Network will eventually be “fully ingested” in the ESPN streaming app.
“We’re giving NFL fans more opportunities to watch games than they’ve ever had before,” Iger said.
Disney also struck an agreement with WWE for rights to live events like WrestleMania and SummerSlam starting next year, scooping them from the current rights holder, Peacock.
“ESPN’s savvy streaming moves over the last year have effectively made it impossible for fans to ignore now,” says John Cassillo, lead analyst at The Measure and head of analytics at Fabric Media. “For cord-cutting viewers, you either pay $29.99 per month or miss a significant and growing chunk of the TV sports landscape.”
Streaming tech is enhancing the ad experience
Iger emphasized that Disney wasn’t in the linear or streaming business, but “in the television business” — downplaying potential perceptions that it was leaning away from the former in favor of the latter.
But as ESPN launches into its new streaming era, Disney seems to recognize where the momentum in the industry lies: Sports viewers are increasingly likely to be streaming sports. As such, the company is building ESPN into a technologically sophisticated sports power player.
As media industry expert Evan Shapiro wrote on LinkedIn: “When TV history is written, the current evolution of ESPN will likely be seen as the perfect case study for the radical transformation of an old school crown jewel TV network, into a user-centric content hub, tailored to the modern era.”
The new ESPN streaming app will feature all live programming from the cable network, integrate fantasy and betting capabilities, personalize SportsCenter offerings and more.
The modern-day upgrade could be a boon for advertisers as well: “Streaming is at an inflection point where there’s clearly more value in the targeted reach you can achieve,” Cassillo says.
For instance, while Disney saw a surge in sports commitments for its recently closed upfront talks, experts say advertisers are still valuing the flexibility that programmatic provides.
Streaming platforms are “enhancing ad offerings with data-driven targeting and interactive formats,” says Tamara Alesi, CEO of Mediaplus North America. “The appetite for measurable outcomes and cross-platform reach is stronger than ever.”