Disney has announced its intention to simplify access to the upcoming ESPN streaming platform. On a recent call with investors, Disney’s CEO, Bob Iger, shared that the forthcoming ESPN Flagship will not be confined to just those who independently subscribe to it. ‘Should one already be a linear ESPN patron, the access to what has been internally referred as ESPN Flagship becomes automatic,’ Iger informed the investors. His idea revolves around remaining somewhat neutral from the subscriber’s perspective while balancing the continuity of the multi-channel framework alongside the growth of the Direct-to-Consumer (DTC) segment.
Essentially, current ESPN cable package subscribers will be granted access to this fresh streaming service without additional procedures. Though official details are still under wraps, it is anticipated to be akin to how subscribers link their service providers to applications like Max or Paramount Plus with Showtime, provided these are included in the cable package. The new arrangement would extend even to those who have severed ties with traditional cable subscriptions, given that their opted live TV streaming package contains ESPN.
For instance, those who have subscribed to ESPN via YouTube TV would theoretically be able to access ESPN’s new top-tier service based on Iger’s statement. Further details including the official name, pricing, and availability of the new ESPN streaming service should be disclosed by Disney in the coming fall season.
Disney’s deliberate decision reflects its cognizance of potential cannibalization of its traditional cable TV demographic by the emergence of its own digital ESPN flagship streaming service. To circumvent this threat, Disney plans to offer the service free to the existing customers of its cable TV network. This thoughtfully crafted solution allows everyone to emerge victorious.
This strategic decision allows Disney and ESPN to consider and include their linear TV subscribers within their user base calculations. Concurrently, the approach ensures that cable providers have fewer reasons to worry about losing cable subscribers as the new service will be accessible through cable, eliminating the need for additional costs. Lastly, this transition offers immense benefit to consumers as it broadens the avenues through which they can access ESPN Flagship’s interactive features.
Iger pointed out during the investor call that ESPN’s traditional cable TV package will not inherit some of the advanced features offered by the DTC service. He emphasized that the direct-to-consumer service will present far more features than what will be available on the linear service.
Nevertheless, with this arrangement in place, customers gain the advantage of availing these additional features – from participating in sports betting where legally permissible to engaging in fantasy sports. All these features will now be available to you through ESPN’s progressive streaming service, accessible either from your traditional cable TV provider or your preferred live TV streaming service.