ESPN’s direct-to-consumer move set to arrive in 2025 or ’26
ESPN is set to launch a direct-to-consumer service that will include all of its programming, like “Monday Night Football,” the college football national championship and the NBA. While the company plans to eventually take the mothership network direct-to-consumer, the service will still remain on cable. According to sources, ESPN is expected to go DTC in two to three years, with the earliest start date being 2025 and the latest being 2026. ESPN chairman Jimmy Pitaro has stated on numerous occasions that there is no exact timetable, as they are watching the market forces. ESPN peaked at 100 million pay-TV subscribers in 2011 and the latest figures are down to 74 million. The magic number expected to prompt ESPN DTC’s launch is when ESPN drops to 50-60 million cable homes. ESPN+ already has 25 million subscribers, and ESPN, the flagship network, has 74 million.
FAQs:
What is ESPN Direct-to-Consumer?
ESPN Direct-to-Consumer is a stand-alone service, like ESPN+, that will include all of ESPN’s programming, like “Monday Night Football,” the college football national championship and the NBA.
When is ESPN going Direct-to-Consumer?
ESPN is expected to go DTC in two to three years, according to sources. The earliest start date is 2025, while the latest is 2026. However, ESPN chairman Jimmy Pitaro has stated on numerous occasions that there is no exact timetable, as they are watching the market forces.
What will happen to ESPN on cable?
ESPN will eventually take the mothership network direct-to-consumer, but it will still remain on cable. The linear network’s distribution will be expanded so a consumer can decide to have it through cable or without.
How many subscribers does ESPN currently have?
ESPN peaked at 100 million pay-TV subscribers in 2011 and the latest figures are down to 74 million.
What is the magic number expected to prompt ESPN DTC’s launch?
The magic number expected to prompt ESPN DTC’s launch is when ESPN drops to 50-60 million cable homes.
How many subscribers does ESPN+ have?
ESPN+ already has 25 million subscribers, and ESPN, the flagship network, has 74 million.
ESPN’s arrival of direct-to-consumer move planned for 2025 or 2026
Sports fans, get ready to plug in to the latest in sports media. Andrew Marchand’s Sports Clicker is now available exclusively on Sports+, offering weekly updates on the latest happenings in the sports world. In the debut issue this September 2021, Marchand dove deep into ESPN’s potential move to direct-to-consumer (DTC) service within the next five years. Now, with recent updates on the topic, Marchand is sharing the most relevant new information.
First, let’s clarify what we mean by ESPN going DTC. The mothership network will still be available on cable, but there will also be a standalone service, similar to ESPN+. This service will include all of ESPN’s programming, such as “Monday Night Football,” the college football national championship, and the NBA. Distribution of the linear network will expand, allowing consumers to choose between cable and DTC options.
So when can we expect ESPN to launch its DTC service? Sources indicate it will likely occur in the next two to three years, with the earliest start date being 2025 and the latest being 2026. However, ESPN Chairman Jimmy Pitaro has stressed that there is no exact timetable and Disney is closely monitoring market forces. The expected launch date is tied to ESPN’s subscriber base, with the magic number being 50-60 million cable homes. As of now, ESPN has 74 million pay-TV subscribers.
One factor that may affect ESPN’s DTC launch is YouTube’s winning of the bidding for NFL Sunday Ticket, the package that allows out-of-market fans to view their teams’ Sunday afternoon games. While Disney/ESPN were in on the bidding, YouTube’s $2 billion-per-year offer secured the package. Every time Sunday Ticket converts a fan to YouTube TV, ESPN will receive the same roughly $10 monthly fee it receives from cable providers. While this could prevent some viewers from dropping cable for ESPN DTC, it could also attract those who don’t currently have ESPN on cable or satellite systems.
Despite continued speculation about ESPN’s financial struggles and ongoing layoffs, sources indicate the network’s financials are expected to be impressive when they are broken out in November for the first time. ESPN+ already has 25 million subscribers, and with the anticipated launch of a DTC service, Disney/ESPN could continue to gain more revenue from sports fans.
While some viewers may drop cable for ESPN DTC, Marchand suggests that the total demise of cable TV may not happen. Even if 10 million viewers move off cable to DTC, there may still be appeal to a cable bundle that includes other popular sports networks. Plus, the ability to toggle between channels with cable may appeal to many sports fans.
In other sports media news, ESPN is expected to announce another round of layoffs this week, while Matt Ryan has chosen CBS over Fox Sports for his analyst career, allowing him to try his hand at both game booth and studio work. Apple TV+’s new MLS package is reportedly not going well, while the bidding for NBA TV deals is heating up among potential bidders ESPN, Warner Brothers Discovery Sports, Amazon, Apple, and NBC.