ESPN Betting Heavily On New Streaming Service

ESPN has weathered any number of tempests in its nearly 40 years, report Variety.

But the perfect storm brewing in Bristol these days is bigger than any that Disney’s most valuable asset has ever faced. The network’s newly installed president, Jimmy Pitaro, will be put to the test immediately in April with the launch of an app, ESPN+, that will charge fans a monthly fee for even more events coverage.

Jimmy Pitaro

ESPN+ is an acknowledgment that the game has changed for sports broadcasters. “We have to challenge ourselves on how we maintain relevance and connection at every point along the way, so that the ESPN brand continues to mean something special,” says Justin Connolly, executive vice president of affiliate sales and marketing for Disney/ESPN Media Networks.

The app is a gambit aimed at securing the future for ESPN at a time when its present couldn’t seem more precarious. Its core business — its cable networks — is expected to shed 14 million subscribers between 2010 and the end of 2018. After refashioning and expanding its flagship franchise, “SportsCenter,” ESPN sparked pushback with a version that fans found too opinionated. Viewership of mainstay program “Monday Night Football” has declined, and the relationship between ESPN and the NFL is looking shaky. Multiple layoffs in recent years reflect the network’s challenging economics. But it may have to ramp up its spending for sports rights: Digital powerhouses like Amazon, Facebook and YouTube are nudging closer to doing significant deals with pro leagues to stream games on their own platforms. Meanwhile, rivals from CBS to Barstool Sports are moving aggressively to seize the moment to capitalize on ESPN’s vulnerability.

“Leaders are always criticized, but ESPN has proven skeptics wrong for 38 years, and we will again,” Pitaro says.

Disney spends piles of cash on ESPN every year — one 2016 estimate has the company paying out $7.3 billion annually for sports rights alone.

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