ESPN, the Disney-owned sports network, is contemplating acquiring local rights for US sports teams impacted by the regional sports network (RSN) chaos. This move comes as part of their broader strategy to find a partner that could help them transition to an entirely streaming-based future.
The Wall Street Journal reveals that ESPN might offer local games from specific Major League Baseball (MLB), National Basketball Association (NBA) and National Hockey League(NHL) clubs as supplements to ESPN+ subscriptions.
The platform already hosts the NHL's direct-to-consumer offerings and has been identified as a potential destination for teams' local rights if necessary. Additionally, some MLB and NBA teams are exploring DTC options instead of traditional RSN agreements.
The ultimate goal is that obtaining these local rights would enhance both ESPN+'s appeal and reach in anticipation of launching a comprehensive streaming service encompassing both platforms in the coming years. Currently, flagship ESPN content remains only available via cable.
However, teams expecting substantial fees similar to those paid by Bally Sports may be disappointed. Instead, ESPN hopes that affected leagues will opt into becoming strategic partners with an equity stake in the business rather than simply receiving payment for broadcasting rights.
Moreover, WSJ reports confirm earlier speculations about ESPN considering offering listings on all mainline sports streaming services besides its own, while commission-based subscriptions are included in this extended package deal.
These moves are vital for EPSN, now more than ever before, due to significant shifts occurring within its market sphere. Proving success in maintaining viewership while transitioning towards online stream distribution poses quite the challenge, given how entrenched their brand previously was with cable bundle arrangements.
ESPN currently reaches approximately 74 million homes, down from being accessible across 100 million households just one decade ago. On top of that, the network boasts nearly 25 million subscribers through EPSN+. Accordingly, shifting consumer habits must be addressed promptly amidst declining relevancy associated primarily with traditional cable television packages.
Ultimately, EPSN aims to establish itself firmly within the post-cable era landscape, acting predominantly as a hub that centralises sport-oriented activities, while helping major league entities adapt accordingly.
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