ESPN has set an August 21 launch date for its highly anticipated direct-to-consumer streaming service, a move announced in conjunction with parent company Disney’s quarterly earnings report. The new platform is central to the network’s strategy for navigating a media landscape increasingly dominated by streaming over traditional cable and satellite.
This strategic shift comes as Nielsen data reveals that, for the first time, streaming usage in the U.S. has surpassed broadcast and cable viewership combined. The trend has directly impacted ESPN, whose cable subscriber base has plummeted from nearly 100 million households in 2013 to 60 million today, a figure projected to fall below 50 million in the next two years.
To attract cord-cutters, the new service will be priced at up to $29.99 per month and will feature all of ESPN’s networks, including ESPN, ESPN2, ESPNU, SECN, and ACCN, alongside all ESPN+ content. An expanded deal with the NFL will also allow subscribers to bundle NFL Network and NFL RedZone.
The platform will debut with an existing base of roughly 25 million subscribers migrating from ESPN+, many of whom receive the service through their current cable packages. However, determining the number of new cord-cutting subscribers will be difficult, as Disney announced it will stop releasing ESPN’s streaming subscriber metrics beginning next quarter.
Key to the service’s appeal are new and expanded content deals. A partnership with the NFL will see ESPN take over operations for the NFL Network, adding three additional games and more broadcast options for “Monday Night Football.” The app will also offer integrated stats, betting information, and fantasy sports features. In a separate deal, ESPN will become the new U.S. home for WWE’s premium live events starting next year, aiming to capture the organization’s large and loyal fan base.
Despite these efforts to secure valuable live sports content, the strategy carries financial risks. ESPN’s revenue rose 1% to $4.3 billion last quarter, but its operating profit declined 7% to $1 billion due to rising rights fees. The network pays an average of $2.7 billion annually to the NFL and will soon pay $2.6 billion per year for its new NBA deal, in addition to $325 million annually for WWE.
These escalating costs have led ESPN to make strategic cuts, opting out of its $550 million contract with Major League Baseball next year and appearing to be out of the running to retain Formula One rights, which are expected to command a significantly higher price.
For existing cable and satellite customers with ESPN+, the transition to the new service will be automatic. For new subscribers, an introductory offer bundles the ESPN service with Disney+ and Hulu for $29.99 per month for the first year.
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