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Disney is actively preparing to launch a standalone ESPN streaming service, according to a new report from Disney Wall Street Journal. The report states that ESPN plans to sell its channel directly to cable-cutters as a subscription streaming service in the coming years. It is not known when Disney plans to launch the service.
The report comes as Disney and ESPN previously said the channel would eventually be, too Available as a standalone streaming service. The companies are now reportedly putting that plan into action with a new project internally codenamed “Flagship”. ESPN has begun securing flexibility in its deals with cable providers and is in similar discussions with the professional sports leagues.
Disney will reportedly continue to offer EPSN as a TV channel even after it’s split into its own streaming service. However, this shift will have major implications for cable TV providers given that live sports on ESPN is one of the biggest draws of traditional cable. Those providers, who pay to carry ESPN, will end up competing with the new streaming service.
Although the sports media giant already has a monthly streaming service called ESPN+, the service does not provide access to the ESPN channel itself. Includes live programming of select MLB and professional hockey games. The service notably does not include NBA and NFL TV shows, which are currently only available on TV. With this new streaming service, ESPN plans to move entirely into streaming.
Disney did not respond to TechCrunch’s request for comment.
During Disney’s earnings call earlier this month, Disney CEO Robert Iger said moving ESPN to a direct-to-consumer service is a huge decision, and one that the company plans to execute carefully.
“We haven’t really changed our position in terms of migrating ESPN’s flagship service primarily as a direct-to-consumer or streaming platform,” Iger said on the call. “We think there’s an inevitability to that, but it’s a huge decision that we have to make. And we know we have to get it right, in terms of pricing and timing.”
Disney’s upcoming plans come as companies like Apple, Amazon and Google are acquiring sports media rights. Most notably, Google-owned YouTube acquired NFL Sunday Ticket in a historic streaming deal last December. Apple acquired the rights to Major League Baseball and Major League Soccer games, and Amazon struck a deal in 2021 to acquire the rights to Thursday Night NFL games.
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