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Yesterday โ€” 24 December 2024Main stream

ESPN thinks this ad will help convince you to pay for ESPN next year.

24 December 2024 at 01:15
Detroit Lions safety Kerby Joseph (31) celebrates in front of the ESPN Monday Night Football television camera
ESPN is launching a stand-alone streaming service. It hasn't said how much it will cost.

Scott W. Grau/Icon Sportswire via Getty Images

  • Starting next fall, you'll be able to watch ESPN without paying for other cable channels.
  • ESPN hasn't said how much its new streaming service will cost. Analysts think it might go for about $25 a month.
  • ESPN isn't sure how many takers the new service will have. It's hoping a new ad campaign will prime the pump.

If you pay attention to the media business, you know that ESPN is going to cut the cord next year. Disney's sports channel is finally going to offer TV viewers a chance to subscribe to ESPN as a stand-alone streaming service, like Netflix or Max.

But ESPN needs to reach a much bigger audience than people who pay attention to the media business if this thing is going to work.

So here's a new ad that's supposed to "set the stage for ESPN's upcoming chapter," per the company's press release. It's going to start airing on Christmas.

This one isn't for me. But I'm not a professional ad critic. And lots of times, the ad campaigns that ad critics swoon over don't really move the needle, so who knows?

But I am old, and I remember the 1990s, when ESPN's SportsCenter was the center of the sports universe. And the winking, mockumentary spots it ran all the time made you feel like you weren't wasting your time watching sports. Sports were fun, but also funny, and you were in on the joke, too.

Anyway. Things are different now. Let's look ahead to the future. Specifically next fall, when what ESPN refers to as "Flagship" is supposed to launch. (This is different than the ESPN+ service it already sells, which shows you stuff that's not on ESPN; Flagship will be a streamed version of all the stuff that's on "real" ESPN.) How much will it cost, and how many people will sign up?

The company has yet to reveal pricing, or audience projections, so outside estimates can vary wildly.

MoffettNathanson analyst Rob Fishman thinks ESPN will sell Flagship for about $25 a month, and projects modest pickup at first: 1 million paid subscribers by the end of 2026, 1.5 million in 2027, and 3 million by 2030.

Wells Fargo analyst Steven Cahall is way more bullish. He thinks ESPN will sell Flagship for $23 a month, and projects 12 million subscribers in 2027, and 17 million by 2030.

That big spread reflects the uncertainty I've heard coming from Disney and ESPN insiders themselves. They simply don't know how many people will want to pay for a service that gives them a lot of sports, but not all the sports on TV. And they also don't know if the people who do pay are going to be cable TV subscribers who are trading down from a big bundle of channels โ€” or if they will be cord-cutters/cord-nevers who aren't paying for cable in the first place.

That uncertainty was part of the rationale for ESPN's participation in Venu, the "Hulu for sports" streaming service that was going to cost $43 a month, and would include ESPN and other Disney channels like ABC, as well as sports and non-sports programming from Fox and Warner Bros. Discovery. The thinking/hope was that between traditional TV, the stand-alone streamer, and the joint venture, ESPN would end up capturing whatever audience wanted to pay for sports, no matter how they wanted to pay for it.

Venu was supposed to have launched already, but has been held up by an antitrust legal challenge; a trial is supposed to get underway in early January. So if Disney and its partners win, ESPN could find itself launching two different streamers next year.

Read the original article on Business Insider

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