ESPN announces launch of new streaming service
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ESPN plans to launch its forthcoming streaming service, which will simply be called "ESPN," this fall with two different price points, executives told reporters in New York City on Tuesday.
Why it matters: The new service, which will include content from all of ESPN's cable networks and its digital streaming service ESPN+, will cost $29.99 per month for unlimited access.
- That's significantly less than what sports fans currently pay for their entire cable bundle.
- For consumers looking for an even cheaper option, ESPN will offer a "select" tier of its new streaming service for $11.99.
Zoom in: ESPN's parent Disney will also offer consumers a special option at launch to bundle Disney+, Hulu and the new ESPN unlimited streaming service for $29.99 monthly for the first 12 months.
- After that, the package will cost $35.99 with ads on Disney+ and Hulu, or $44.99 with no ads on those services.
- The ESPN service will feature both dynamically inserted ads that are easy to narrowly target to specific audiences, as well as pass-through ads that are sold on its cable channels, Disney's advertising president Rita Ferro said.
- The service, which until now was dubbed "Flagship," will include fan-friendly personalization features.
- ESPN chairman Jimmy Pitaro previously said that it would include ESPN Fantasy and betting within its app, as well as statistics, merchandising and commerce.
Between the lines: Cable networks with lucrative media rights deals have to walk a fine line between experimenting with streaming and staying loyal to their agreements with traditional TV operators.
- Asked whether ESPN has been in talks with traditional TV distributors about the new product, Pitaro said "we've been very transparent with distributors that this product is coming."
- He added that traditional TV subscribers will have access to the new service and can authenticate their cable subscriptions within the app.
Flashback: ESPN launched ESPN+, its first foray into streaming, in 2018. That service isn't going away, but it's no longer the network's top priority, Pitaro said.
- That service has some exclusive sports rights, but it doesn't have access to the same level of major games and tournaments that its cable channels have, like Monday Night Football.
- Pitaro said the network's goal is to "very much try to upsell ESPN+ subscribers to ESPN," which is also part of the reason the new service is being bundled with other Disney streaming apps.
- "A lot of our marketing and our messaging will be focused on upselling those trio bundle subscribers to this new bundle at this very attractive pricing," he said.
The big picture: ESPN's new streamer is meant to serve cord-cutters or sports fans who have never subscribed to cable, but it's not the only TV company trying to address that need.
- Fox Corp. CEO Lachlan Murdoch this week announced that Fox's news streaming service, which will include entertainment, sports and news, will launch this fall as "Fox One."
What we're watching: The new ESPN streamer launches months after Disney, Fox and Warner Bros. Discovery killed their plan for a joint streaming service called Venu, following antitrust challenges.
- Disney acquired sports-focused, virtual pay-TV provider FuboTV shortly after the deal fell through.
- It's unclear how it will be integrated into Disney's portfolio.
Go deeper: Sports streaming blitz
