ESPN chairman Jimmy Pitaro has confirmed that the Disney-owned network will be shifting to a Direct-To-Consumer network in the future.
Streaming services are on the rise and cable tv is on descendancy but this has not stopped ESPN from having a distinct cable and streaming service. Currently, the sports network has 74.9 million viewers on cable which is significantly less than the 100 million viewers that tuned to the network a decade ago. That being said, ESPN+, the streaming service, which offers its packages from as low as $99.99 annually to $9.99 per month, hosts 24.9 million viewers.
ESPN also receives US$10 every time a cable user receives its channels. This is applicable even if they do not use the network.
It is clear that ESPN is currently serving as the backbone of US cable with its coverage of the National Football League (NFL), and the National Basketball Association (NBA) bridging the gap between cable and streaming services. But, that could change in the future, as confirmed by Pitaro, who also refused to commit to a specific timeline. Speaking about ESPN shifting to a DTC model, Pitaro said:
“We’re going to get to a point where we take our entire network, our flagship programming, and make it available direct to consumer,”
“That’s a ‘when,’ not an ‘if’…We’re only going to do it when it makes sense for our business and for our bottom line.”
It could well be a matter of time before we see ESPN take a step back from cable and move on to the DTC model. Moreover, with its association with Disney, it has a lot to offer apart from sports with some of its packages also including content from Disney and Hulu.
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