ESPN’s Direct-To-Consumer Play

It’s hard to argue that ESPN isn’t the most established name in sports media. It’s just as hard to deny that the way we consume video content is shifting dramatically. As more viewers move away from traditional linear TV and toward on-demand, non-linear platforms, ESPN is making a major pivot of its own.

Later this year, ESPN will roll out two new direct-to-consumer services: ESPN Unlimited and ESPN Select.

• ESPN Unlimited ($30/month) offers nearly 50,000 live events, the full portfolio of ESPN studio shows, and access to everything across the ESPN ecosystem.
• ESPN Select ($12/month) includes a curated lineup of games and a library of original programming.

Both subscription options will be available as standalone services or as a bundle with Disney+ and Hulu. ESPN+ subscribers will be automatically migrated: current standalone ESPN+ users will receive ESPN Select, while those with the Disney+/Hulu/ESPN+ bundle will retain access through the Select bundle.

ESPN products will remain available on MVPDs (multi-channel video distributors – Dish Network, cable companies, etc.). Existing MVPD customers who receive ESPN will have access to all of the network’s content through their DTC platform at no additional charge.

ESPN is truly a leader in sports television with an impressive portfolio of video content that includes ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ESPN Deportes – in addition to ESPN on ABC, ESPN+, ESPN3, SECN+, and ACCNX. The network has rights that include the NFL; NBA; NHL; MLB; WNBA; UFC; UFL; SEC; ACC; Big 12 (Go Devils!); College Football Playoff; 40 NCAA championships; LaLiga, Bundesliga, NWSL, and FA Cup soccer; Australian Open, Wimbledon and US Open tennis; The Masters, PGA Championship, PGA TOUR, and TGL golf; Little League World Series baseball and softball; Premier Lacrosse League; and more. ESPN’s leading studio shows include SportsCenter, Get Up, First Take, NFL Live, The Pat McAfee Show, Pardon the Interruption, College GameDay, NBA Today, and others, along with on-demand content including 30 for 30 films, ESPN Originals, and more.

Remember, ESPN is a business, so choice and flexibility for the consumer are one facet of this change. A little consolidating and rebranding is not a bad play for them. Another important component that only people reading this tend to consider is what impact this will have on their advertising sales.

On the network level, I don’t see this new development resulting in a ton of changes to their current network advertising sales strategy. ESPN will be purchased at the upfront in a big way for its ability to deliver large, real-time audiences.

From a local perspective, this news should positively impact ESPN’s local and regional ad sales teams. This initiative, which is still relatively new, put ‘boots on the ground’ in major markets like Phoenix to sell the full suite of ESPN offerings, including digital, video, and audio platforms. This was a departure from the historical ‘rights holder’ model, where companies like Cox Media didn’t have to compete with sellers from the actual network in-market.

Good Karma Brands managed to attract talented sales professionals who are selling the ESPN vertical locally. The local rep we work with is Brian Wempen. He’s a pro and can help your brand navigate the many offerings that ESPN has to offer.

I would imagine that any improvement that increases distribution is a positive to their efforts. Additionally, this move by ESPN gives them a better footing for the future in the ever-expanding linear TV world. As per sub rights deals continue to become a thing of the past, subscription fees and improved advertising efforts will help ESPN to secure the rights to programming that isn’t getting any less expensive anytime soon.