ESPN revealed its name and pricing for its upcoming direct-to-consumer model last week. Many across the media industry seemed fine with the name replicating the brand’s 4-letter identity. The cost however produced different reactions.
The company’s DTC model will launch with a few different options. The Unlimited package will cost $29.99, the Select package will be $11.99, and a Bundle featuring Hulu, Disney+ and ESPN will be $34.99 but begin with an introductory offer at $29.99. Prices are higher if viewers prefer an ad-free experience.
The Unlimited package includes ESPN, ESPN2, ESPNU, SEC Network, ACC Network, ESPNEWS, ESPN Deportes, ESPN on ABC, ESPN+, ESPN3, SEC Network+, and ACCNX, essentially everything ESPN offers. The Select package is the current ESPN+ offering. The Bundle gives you the ESPN Everything package along with Hulu and Disney+.
After the news broke, personalities hit the airwaves and social media to complain about the price. I expected some to take issue with it but some of the logic I heard made no sense.
For starters, what did you think the price would be? If ESPN+ is $11.99 by itself, and services like Hulu and Disney+ cost $9.99 per month and higher if you choose the ad-free model, did you think it was going to cost $10-$15 per month? If you did, you didn’t do your homework. $25-$30 is what many expected. This was not a surprise.
Secondly, if you’re up in arms over $29.99, were you going to buy the package at $24.99 or $19.99? Unless they charged $4.99-$9.99, you were likely going to complain about it anyway.
Next, what does Netflix charge per month for its content? I’ll answer that for you, $17.99 to $24.99 per month. What does Amazon charge for a Prime Video subscription? $8.99 for video content, which gives you Thursday Night Football and a slew of movies that cost extra. Most who subscribe to Amazon opt for the Amazon Prime subscription, which includes FREE shipping on Amazon products. That bumps the price to $14.99 per month.
Have you looked at what the NBA, MLB or regional channels like YES, SNY, and MSG charge to watch their teams? YES and SNY cost $24.99 per month with a few special deals during baseball season. MSG costs $29.99, and MLB TV and NBA TV both feature packages between $24.99-$29.99 per month.
Which of those options deliver more sports content worth watching than ESPN? They offer thousands of games from every major league, the most recognized shows in the industry, and a talent roster that includes Stephen A. Smith, Pat McAfee, Nick Saban, Kirk Herbstreit, Jason Kelce, Scott Van Pelt, Mike Greenberg, Adam Schefter, Shams Charania, Chris Russo, Chris Berman, Shannon Sharpe, Peyton and Eli Manning, Mina Kimes, Laura Rutledge, Joe Buck and Troy Aikman, plus Rich Eisen and Inside The NBA are on the way. You can easily add another 10-20 top names to the list too.
If sports fans could only keep ESPN, Netflix or Amazon, guess which one they’re taking? I’ll help you out, the answer isn’t Netflix or Amazon. Both of those outlets know it too. It’s why they’re aggressively locking up sports rights to compete at a larger scale.
Fans and media folks in their 40’s, 50’s, 60’s and older aren’t going to like the idea of 25-30% of their TV bill going to one sports network. We’ve grown up with sports being affordable on television so the idea of it becoming too costly to watch is concerning.
But therein lies the problem.
Did you know that 85% of sports fans would rather watch sports on television than in person? If more people stay home to watch games, resulting in declining attendance, where do you think the revenue is going to be made up? If you guessed television, you win a left handed screwdriver. Congrats.
The television world you knew ended a decade ago. Cable television was a better bargain than we realized, but companies now want to control distribution, the consumer relationship, and first-party data. Take a look around, FOX, CBS/Paramount, HBO/MAX, NBC/Peacock, ESPN/Disney/Hulu have all built DTC models to stay competitive against the Amazon’s, Netflix’s and YouTube’s of the world. There’s going to be more not less of this in the future.
I understand some will say ‘but ESPN is charging more than anyone else’. That’s fair. If you polled most people in America though and asked them which brand is synonymous with sports, they’d pick ESPN. It would also be listed as one of the most important networks/channels to have in any television package. When you’re the most powerful brand in sports broadcasting, you’re going to cost more than everyone else.
I heard media folks bitch about $29.99 per month, and in the next sentence, say they were ok spending $750-$1000 for a ticket to attend an NBA playoff game. Huh? Make it make sense, folks. Have you looked at the rise in prices for tickets to big events? Costs have soared 5-6X more than a decade ago, yet people chalk it up as ‘well, that’s the market, you just have to accept it.’
Meanwhile if a TV company offers an option to view their programming, one that you don’t have to buy (you can still get ESPN and many of its channels through YouTube TV, cable/satellite, etc.), you’d think that they asked for a kidney by charging $29.99 per month. This is simply another option if you wish to move away from a cable/satellite subscription or purchasing TV thru Sling, YouTube TV, Hulu Live, etc..
I’d prefer lower TV prices too, but the days of TV being simple and cheap are over. Compared to the rest of the marketplace, ESPN offers more than any other sports outlet. I’m not sure how many channels you watch per month, but most people view 20 or less. Is it better to pay $100-$150 per month for what you watch or $100-$150 per month for what you consume and options you never look at?
I have no issue with ESPN’s price. My only concern is that I don’t think these rates will be the same a year from now. YouTube TV has made it a regular practice to boost rates. The monthly subscription has jumped from $39.99 when I signed up in 2017 to now $84.99. I’ve reached the point that I’ve considered cutting the chord on the chord. I suspect others feel the same.
The bigger concern and question is when does the bubble burst? If leagues continue to charge record rates for broadcasting their games, and ESPN and other entities keep paying those prices, the costs eventually get passed along to the consumer. At what point do sports fans say, enough is enough?
I’m not saying there isn’t a reason to be concerned. But I think we’re nearing a point where fans will have to choose which networks and programs matter most if they want to stay within their budgets. You may want to watch Monday, Thursday and Sunday Night Football, the NBA, MLB, WWE, UFC, and College Football, but to do so may cost too much. So, you’ll have to pick which sports are vital to watch, and which aren’t.
Fans are not like media people. They just want to enjoy the games or shows, and do so affordably. If they feel cable TV, YouTube TV, satellite or another service costs too much, and ESPN, Netflix, Peacock, and Amazon provide enough value collectively, they’ll accept less to pay less. The difficulty is having less choice, and having to study which outlets provide specific programs so you’re getting your money’s worth.
I dislike what the NFL has done to fans. This season alone there will be 10 different outlets carrying NFL games. The product is oversaturated, and the owners are so focused on profit that they don’t seem to care about inconveniencing fans or pricing them out.
How does that affect fandom over the next decade or two when fans who grew up on their phones watching minutes rather than hours of games, start choosing which events/sports to purchase? Will the next generation care less about sports due to leagues making it unaffordable? Does sports betting drive more or less viewing in the future? The shift to international markets makes sense for leagues because it attracts new fans and revenues, and if we reach a tipping point in the United States, growth has to come from elsewhere.
Some in media may not like ESPN’s DTC price, but given how much content they offer and what they’ve secured in rights in future years, it’s hard to argue that they haven’t earned the right to command a few extra dollars. If you’re a traditionalist, you can still receive ESPN how you always have. But younger people are going to buy TV differently, and ESPN is entering that pool just like the others.
The only way to avoid the pricing surge is to stop consuming and caring about sports. It’s going to cost more to watch sports on television moving forward. The only question is which networks will thrive, which ones won’t, and will you consume content via cable/satellite or individual apps?
Understand that there is another option. You could spend hundreds of dollars on tickets to attend each game. I don’t recommend it, but some in the media say it’s not a bad deal. I’d prefer $29.99 per month.
A Proud Dad Moment
My son Dylan graduated from Hofstra University on Sunday. Commencement speaker Heather Cohen did an awesome job during an exceptional ceremony. Those of you who’ve followed my career and journey know how important my son is to me. As I watched him cross the stage, I couldn’t help but think of the ten years of bi-weekly flights during my programming career, and what Stephanie Eads and I gave up to get to New York to gain custody. Raising him, showing him what can be achieved through persistence and hard work, and preparing him for this next chapter of his life is the best work Stephanie and I have ever done.
Dylan plans to enter the industry. During school, he interned for Omaha Productions, The Volume, ESPN New York, and Elvis Duran and the Morning Show in addition to producing sports television, and doing radio and social media for WRHU and the Heat Network at Hofstra. He also spent his own time shadowing social teams at WWE, Jomboy Media, ESPN, FOX Sports and others.
Four years ago he entered college treating it like 13th grade. Today, he’s a graduate, far more mature. and ready to blaze his own trail. I can’t wait to see what the future has in store for him. Find him on LinkedIn here.
2025 BNM Summit Update
Glenn Beck and Chris Ruddy were announced as speakers last week. I have more names to share this week starting with a talent announcement tomorrow morning. Tickets to the September 3-4 show in NYC can be purchased at BNMSummit.com for $224.99. That sale price remains in effect until June 30th. Prices increase to $324.99 on July 1st.
2025 BSM Summit On-Demand
2025 BSM Summit attendees and speakers will get an email later today with instructions on how to log in to view the sessions from our recent conference in Chicago. Folks who missed the show can purchase on-demand tickets for just $75. Just log on to BSMSummit.com to check out the show. Those who joined us in Chicago, keep an eye on your inbox.
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Jason Barrett is the Founder and CEO of Barrett Media. The company launched in September 2015 and has provided consulting services to America’s top audio and video brands, while simultaneously covering the media industry at BarrettMedia.com, becoming a daily destination for media professionals. Prior to Barrett Media, Jason built and programmed 95.7 The Game in San Francisco, and 101 ESPN in St. Louis. He was also the first sports programmer for SportsTalk 950 in Philadelphia, which later became 97.5 The Fanatic. Barrett also led 590 The Fan KFNS in St. Louis, and ESPN 1340/1390 in Poughkeepsie, NY, and worked on-air and behind the scenes at 101.5 WPDH, WTBQ 1110AM, and WPYX 106.5. He also spent two years at ESPN Radio in Bristol, CT producing ‘The Dan Patrick Show’ and ‘GameNight’. JB can be reached on Twitter @SportsRadioPD or by email at Jason@BarrettMedia.com.
