Iger Predicts ESPN's Direct-to-Consumer App to be Exclusive for Pay TV Subscribers
In a noteworthy crack at reassuring pay TV operators, CEO of The Walt Disney Co., Bob Iger, announced on the company's second-quarter earnings call that the long-awaited ESPN direct-to-consumer (DTC) streaming app, popularly known as "ESPN Flagship," will be accessible to pay TV operators' existing subscribers.
The move aims to quell concerns over a potential surge in cord-cutting. Iger ensured that current linear ESPN subscribers would reap all the benefits of the upcoming DTC offering.
"Fear not, dear linear ESPN subscribers! You'll be indistinguishable from the privileged ones reveling in the splendor of the ESPN Flagship—and let me clarify, it won't retain that loathsome moniker," Iger reassured the analysts. "By the way, next week, our boy Jimmy Pitaro will grace us with more than just a new name; he'll also spill the beans about our ingenious pricing strategy."
The grand reveal is set to take place during Disney's upfront on Tuesday, May 13.
According to Iger, the primary goal is to strike a delicate balance between preserving the multichannel ecosystem and fostering DTC growth. Although the ESPN linear service will consist of a stripped-down version of the DTC service, it'll offer enough bells and whistles to keep subscribers hooked.
"We're trying to play a delicate game here, with one hand supporting the multichannel ecosystem while the other greedily reaches for those DTC dollars," Iger explained. "The ESPN linear service might not have the oomph of the DTC service, but fear not, dear consumer! You'll be given the option of devouring both!"
Iger further added, "From a sheer numbers game, we've got an unparalleled collection of licensed sports on ESPN and a veritable trove of studio programming and shoulder programming, most of which will reside comfortably on the linear service and the Flagship, a term which must now surely die on my lips."
Bonus Insights:
In a separate announcement, ESPN Chairman Jimmy Pitaro unveiled the service's name: simply "ESPN." The new streaming platform will offer two main plans:
- The Unlimited Plan: Priced at $29.99 per month, this plan offers the entire ESPN network suite, and when bundled with Disney+ and Hulu, costs $29.99 for the first 12 months, after which the bundle price climbs to $35.99 per month[2][4].
- The Select Plan: A more affordable option at $11.99 per month, this plan mirrors the content currently available on ESPN+ but omits live feeds from ESPN's linear networks[4][5].
The streaming service, expected to launch in early fall 2025, ahead of the professional and college football seasons[2][4], aims to deliver everything ESPN has to offer in one convenient location, leveraging the brand's trusted renown in sports[2][4].
It's worth noting that while Jimmy Pitaro's announcement didn't explicitly address Bob Iger's statement, ESPN will continue to be accessible through traditional Multichannel Video Programming Distributors (MVPDs) and virtual Multichannel Video Programming Distributors (vMVPDs)[5]. However, further details about how existing subscribers will access the new DTC service have yet to be disclosed in the recent announcements.
- "Bob Iger's announcement of the ESPN Flagship streaming app reveals an innovative pricing strategy, with two main plans: The Unlimited Plan for $29.99 per month, offering the entire ESPN network suite, and the Select Plan at $11.99 per month, mirroring the content on ESPN+ but excluding live feeds from ESPN's linear networks."
- "The unveiling of the new ESPN streaming service also indicates a desire to streamline content, ensuring all ESPN offerings are available in one location, leveraging the brand's trusted reputation in sports and media technology."
- "In his reassurance to pay TV operators, Bob Iger Subtly hinted at the continued availability of ESPN through traditional Multichannel Video Programming Distributors (MVPDs) and virtual Multichannel Video Programming Distributors (vMVPDs)—a significant aspect of the entertainment and media technology landscape."
- "The ESPN direct-to-consumer (DTC) streaming app—popularly known as "ESPN Flagship"—aims to deliver a seamless sports entertainment experience, striving to quell concerns over a potential surge in cord-cutting and catering to the growing demand for online video content."
