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Disney Has Streaming Advantages With ESPN That it Must Lean Into

"Making it a premium add-on to Disney+ instead of its own product may not solve that problem entirely, but it does create the advantage of convenience."

Remember back before the pandemic when streaming television was still “the next big thing”? It was no doubt popular, but it wasn’t as ubiquitous as it is now. 

Back then, just having a streaming service was seen as an essential. Now, you need a streaming strategy and after a whole lot of plans and experimentation, ESPN made a big move last week when it popped up as a tile on Disney+.

This doesn’t mean that ESPN+ will no longer be a standalone service…at least it doesn’t mean that yet. More on that in a minute. It also doesn’t mean the long-planned Project Flagship is dead and buried. It’s merely the best move for the network right now.

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Simply put, there are just too many streaming TV services out there. Netflix is the gold standard in terms of reach, but right below it are Prime TV and Disney+. After that, there is a big dropoff to the Apple TVs, Maxes and Peacocks of the world. The drop to the next tier? It’s so much bigger.

I always thought ESPN+ was kind of a hard sell. There weren’t enough exclusive events from the likes of the NFL, NBA, and Major League Baseball. The college sports products were rarely the must-see matchups. ESPN+ definitely had appeal. It just wasn’t particularly broad.

That isn’t a problem though when you have Disney+ at your disposal. The Walt Disney Company knows that it is a super weapon. It’s why, despite the very family-unfriendly nature of shows like Shogun and Say Nothing, Hulu was introduced as a tile on Disney+ a little over six months ago.

ESPN’s streaming future was always somewhat convoluted. Jimmy Pitaro had talked about a number of radically different visions for how fans could stream the network’s content and promised that all of them would be available. 

One of those options, VENU, the proposed skinny bundle partnership with FOX and WBD, has been sidelined by Fubo’s antitrust lawsuit. There are still a lot of digital offerings either coming or available from ESPN. Could the network, and thus the Walt Disney Company, benefit by letting Disney+ do the heavy lifting?

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Most people across the industry believe that whenever a fully over-the-top version of ESPN launches, it will be priced at a premium. Streaming’s biggest disadvantage compared to cable is there is still no way to pay one price for everything. It’s a math problem of what gets you the most. For sports fans, outside of Sunday NFL games, a streaming version of ESPN would get them most of the biggest play-by-play properties. That won’t come cheap.

But what is the market for that? Right now, a subscription to Hulu + Live TV is $82 per month. A base subscription to YouTube TV is $73 per month. Neither one is cheap, but for a sports fan, they are good values compared to the rumored $30 or more per month Disney may ask for access to just the ESPN networks. 

Whatever the cost, a fully digital ESPN will be priced at or near the highest end of the streaming spectrum. That will turn some potential users off. Making it a premium add-on to Disney+ instead of its own product may not solve that problem entirely, but it does create the advantage of convenience.

Every time a new Star Wars or Marvel show comes out, there’s the tile encouraging you to buy. Every time your kid asks to watch Moana for the 1000th time, there’s the tile reminding you that you rarely watch cable anyway. 

I’ve always thought that the Walt Disney Company should do a better job of incorporating ESPN into its entertainment universe. (Don’t get me started on the missed opportunity to reopen Epcot’s Wonders of Life Pavillion with an ESPN overlay!) What ESPN+ has to offer right now fits the Disney+ model perfectly. Are you telling me the same person that streams Star Wars: Skeleton Crew wouldn’t give Peyton’s Places a shot?

The top three players in the streaming TV game can offer users the ease of discovery. It’s how their content finds an audience. Hot Frosty doesn’t even become a thing if not for people being on Netflix anyway. That is an advantage Disney should lean into as it gets set to take one of cable’s most valuable properties fully digital.

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Demetri Ravanos
Demetri Ravanos
Demetri Ravanos is a columnist and features writer for Barrett Media. He is also the creator of The Sports Podcast Festival, and a previous host on the Chewing Clock and Media Noise podcasts. He occasionally fills in on stations across the Carolinas in addition to hosting Panthers and College Football podcasts. His radio resume includes stops at WAVH and WZEW in Mobile, AL, WBPT in Birmingham, AL and WBBB, WPTK and WDNC in Raleigh, NC. You can find him on Twitter @DemetriRavanos or reach him by email at DemetriTheGreek@gmail.com.

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