ESPN finally reveals the name of its new flagship streaming service
ESPN has announced its new streaming service, named simply ESPN, set to launch in the fall with two subscription tiers. The unlimited plan offers comprehensive access to ESPN’s content for $29.99 per month, with a bundle option including Disney+ and Hulu for $45.99, while the select plan at $11.99 provides content available on ESPN+. Disney emphasizes the platform as an immersive experience for sports fans, leveraging its app-based interface to navigate the challenges of cord-cutting trends in the industry. Despite economic challenges, Disney reported a 5% revenue increase at ESPN, though operating income fell due to increased programming costs, offset by higher advertising revenue. The announcement follows the collapse of the Venu Sports joint venture, with Disney focusing on its own streaming platform to maintain its competitive edge in the sports broadcasting sector.
Context:
ESPN has announced its new streaming service, named simply ESPN, set to launch in the fall with two subscription tiers. The unlimited plan offers comprehensive access to ESPN’s content for $29.99 per month, with a bundle option including Disney+ and Hulu for $45.99, while the select plan at $11.99 provides content available on ESPN+. Disney emphasizes the platform as an immersive experience for sports fans, leveraging its app-based interface to navigate the challenges of cord-cutting trends in the industry. Despite economic challenges, Disney reported a 5% revenue increase at ESPN, though operating income fell due to increased programming costs, offset by higher advertising revenue. The announcement follows the collapse of the Venu Sports joint venture, with Disney focusing on its own streaming platform to maintain its competitive edge in the sports broadcasting sector.
Dive Deeper:
ESPN's new streaming service, named ESPN, is set to launch in the fall, featuring an unlimited plan at $29.99 per month, which provides access to extensive ESPN content, including ESPNs 2, 3, ESPNU, ESPN Deportes, and college sports networks, offering 47,000 live events and studio shows annually.
A select plan is also available for $11.99 a month, encompassing all content currently on ESPN+, catering to different consumer needs and providing flexibility in subscription options.
Disney positions the streaming service as an innovative experience for sports fans, highlighting its user-friendly, app-based design as a strategic response to the cord-cutting phenomenon impacting traditional television networks.
Despite economic challenges, Disney reported a 5% revenue increase at ESPN to $4.53 billion, though operating income decreased by 16% due to higher programming and production costs, which were partially offset by a significant increase in domestic advertising revenue.
The launch of ESPN's streaming service comes after the collapse of the Venu Sports joint venture, reflecting Disney's strategic pivot towards enhancing its own platform to secure a competitive position in the crowded sports streaming market.