ESPN’s much-discussed streaming service finally has its launch date.
The network announced Wednesday that its direct-to-consumer service and enhanced app will debut Aug. 21. The announcement coincided with Disney’s quarterly earning report.
This week’s expanded deals with the NFL and a new partnership with WWE provide ESPN more inventory and offerings, which it hopes will bolster the company in a landscape that is divided among cable, satellite and streaming.
Will the ESPN service result in more subscribers?
According to Nielsen, streaming usage surpassed broadcast and cable combined in U.S. television usage for the first time. Streaming was at 44.8% compared to linear’s 44.2%. When Nielsen started keeping track in May 2021, linear was at 64% compared to streaming’s 26%.
The ESPN DTC will start out with around 25 million subscribers as those currently getting ESPN+ will migrate to the new platform. Many of those though are cable and satellite subscribers who get the service through deals with their provider. ESPN is hoping that more cord cutters will pay up to $29.99 per month since it will offer all of the ESPN networks — ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ESPN Deportes, ESPN on ABC, ESPN+, ESPN3, SECN+ and ACCNX — as well as being able to bundle NFL Network and NFL RedZone through a deal with NFL+ Premium.
Trying to determine how many of the DTC service subscribers are cord cutters will be more difficult though. Disney announced during its earnings call Wednesday that it will stop releasing ESPN streaming subscriber metrics beginning next quarter.
ESPN was in nearly 100 million households in 2013. Over the past 12 years due to cord cutting and streaming, that number has dropped to 60 million. Over the next two years, that is expected to decrease to fewer than 50 million.
What do the NFL and WWE deals mean for ESPN’s market footprint?
Live sports remains valuable property, but the NFL is the beachfront house.
For taking over NFL Network, which had also been steadily losing subscribers, ESPN gets three additional NFL games along with another outlet to air Monday night games when there are more than one, as well as the ability for its app users to get specialty highlights of their favorite players or teams. There will also be ways to access stats, betting and fantasy sports info on the app while watching games.
The WWE premium live events (they’re no longer called…