ESPN is laying the groundwork to sell its channel directly to cable cord-cutters as a subscription-streaming service in coming years, according to The Wall Street Journal citing people familiar with the matter, a shift with profound implications for the company and the broader television business.
Executives at ESPN and its parent, Disney DIS 1.38%increase; green up pointing triangle, for years have said it was inevitable that the sports-TV channel would one day be available as a stand-alone streaming service. Now, as consumers increasingly cut the cable-TV cord, the company is actively preparing for that shift under a project with the internal code name “Flagship,” the people said. The company has set no firm timeline for the change.
ESPN has begun securing flexibility in its deals with cable providers to offer the channel directly to consumers, the people said. The financial terms of those deals couldn’t be learned. The company is having similar discussions with pro sports leagues as those rights deals come up and has secured the same flexibility from at least two major leagues, the people said.
The sports-media giant took its first step into streaming in 2018 with the launch of ESPN+, a monthly streaming service whose live programming includes golf events, certain Major League Baseball and professional hockey games, as well as a variety of scripted and unscripted programming. It has 25.3 million subscribers
But ESPN+ doesn’t offer access to the ESPN channel itself, including high-value programming like National Basketball Association and National Football League telecasts that are only available on TV. Project “Flagship” is about helping ESPN transition the full channel to streaming.
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