DisneyThe corporate’s ESPN wants to be the hub for all live sports – even for the competition.
The sports network has held talks with major sports leagues and media partners about launching a feature on ESPN.com and its free ESPN app that may connect users directly to where the sporting event is being broadcast live, according to people accustomed to the matter.
This will likely include national or global streaming services resembling Apple television+ i Amazon Prime Video, or a regional sports service, e.g Sinclair Bally Sports+ or Madison Square Garden Entertainment MSG+.
The actual media partners have yet to be determined and there isn’t any timetable for when such a feature will go live, said individuals who asked to remain anonymous as the discussions are private. Still, ESPN pitched the idea to major sports leagues and media corporations to gauge their enthusiasm, people said.
While the business terms of the concept may yet change, ESPN is considering a model where it might lower subscription revenue from a user who signed up for the streaming service through an ESPN app or website, two people said. If a customer is already subscribed to a selected service, ESPN doesn’t charge any money and just provides the link as a courtesy, said people accustomed to the matter.
ESPN may additionally alert users to games airing on linear television, cementing its latest role as a live TV sports guide, people said.
An ESPN spokesman declined to comment.
Several regional sports network owners have expressed particular optimism about the idea as they fight to boost subscription revenue, while leagues are questioning the business prospects of the larger industry in an ecosystem dominated by streaming, two people said. CNBC previously reported that Sinclair’s Diamond Sports Group was considering bankruptcy restructuring after it failed to repay a $140 million debt. Warner Bros. Discovery has alerted the leagues that it plans to exit the RSN business altogether, according to The Wall Street Journal.
Garbage sports
It’s getting harder and harder for consumers to work out how to find a selected game as rights packages have been split up by sports leagues looking to maximize fares across streaming partners. A Recent York Yankees game for fans in the Recent York City area could be aired on linear television on YES, ESPN, or Discovery Warner BrosTBS or can stream on Amazon Prime Video, Apple TV+ or Peacock NBCUniversal.
ESPN wants to use its self-proclaimed status as a “world leader in sports” to grow to be the de facto first stop for all consumers looking for a spot to watch live sports, people have said. Currently, ESPN only connects users to ESPN-licensed content. According to people accustomed to the matter, this accounts for nearly 30% of all sports televised or streamed in the US.
ESPN president Jimmy Pitaro
Steve Zak Photography | Film Magic | Getty’s paintings
ESPN’s willingness to promote other streaming services suggests a strategic shift in the streaming wars. Disney is less focused on getting streaming subscribers – and eyeballs – at any cost. Company executives have stressed that they need investors to prioritize revenue and profits over subscriber growth, a trend began by other media corporations including Netflix and Warner Bros. discovery.
Media corporations have also began trading on lockstep because it has slowed the growth of streaming. This reduces competitive pressure and promotes cooperation. Disney and Warner Bros. Discoveries are also specializing in the content of the licence Down competing streaming services to increase revenue, not to maintain content exclusivity.
Disney CEO Bob Iger announced a company-wide reorganization last month that made ESPN a standalone division, led by ESPN president Jimmy Pitaro. The move may lead to tighter scrutiny of ESPN’s funds during salary talks. pitaro announced on Wednesday improves subordinate management to reduce the variety of direct reports.
While activist investor Dan Loeb last 12 months pressed Disney wring or sell ESPN, Iger said there are not any plans for that.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.
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