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ESPN plans to go streaming-only as uncertainty surrounds cable TV

On3-Social-Profile_GRAYby:On3 Staff Report05/18/23
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Lee Coleman/Icon Sportswire via Getty Images

As the streaming wars continue to heat up with various platforms jostling for position, ESPN is preparing a move that could significantly bolster its direct-to-consumer (DTC) offering, according to the Wall Street Journal.

The WSJ reports that ESPN is “laying the groundwork” to sell its channel directly to cord-cutters as a subscription-streaming service in the coming years.

Live sports remains as one of the kingpins of television offerings, with diehard fans willing to tune in to see their teams compete in real time. Having that content eventually make it over to streaming in a DTC format seemed inevitable, though how soon the shift would occur was anyone’s guess.

According to the WSJ there is no current timeline for the change in offering, but an internal code name of “Flagship” has been assigned to the project.

Given ESPN’s lucrative and expansive television rights packages with various sports leagues, the company should be able to provide a robust offering when launching a more complete DTC streaming option. Currently the linear TV channel’s offerings are not fully available via streaming, though ESPN has made progress on that front.

ESPN+, a streaming option featuring many of the games and shows broadcast by ESPN, was launched in 2018.

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Disney is the parent company of ESPN, and Disney has made significant progress in streaming over the past several years, most notably with the launch of Disney+ in late 2019.

As of Dec. 31, 2022, Disney+ had 161.8 million subscribers, while ESPN+ had 24.9 million.

Many college sports fans are already familiar with ESPN’s streaming offerings, with sports like football, basketball, baseball, softball and gymnastics from a handful of conferences all appearing regularly as part of the network’s programming.

Adding the linear cable channel as an option will increase the offerings to include sports like the NBA and the NFL, which are currently available only through legacy cable options.

The WSJ reports that ESPN has already begun “securing flexibility” in its deals with cable providers to be able to offer the channel as a DTC option.