ESPN to launch new direct-to-consumer platform in 2025

ESPN has announced the launch of its new direct-to-consumer (DTC) platform, internally dubbed ‘Flagship’, which is set to go live in 2025. This innovative service is designed to combine the offerings of ESPN’s main channel and ESPN+, incorporating a broad range of digital features such as ecommerce, betting, and personalisation tools. The move is part of ESPN’s strategic shift towards catering to the growing market of sports fans who are moving away from traditional cable and satellite television.

ESPN chairman Jimmy Pitaro, who has been pivotal in steering the network through the changing media landscape, has expressed confidence that this new platform will ensure the network’s profitability as the traditional bundle model declines. Speaking with CNBC Sport, Pitaro conveyed that Flagship aims to broaden ESPN’s reach, tapping into new audiences and unlocking previously inaccessible revenue streams through digital distribution.

Pitaro highlighted the current trend toward “cord-cutting”, where consumers are increasingly canceling their cable subscriptions in favour of streaming services, and the need for ESPN to adapt accordingly. He emphasised that there are approximately 50 to 60 million households currently not participating in the pay-TV market, many of whom are potential sports viewers that ESPN hopes to engage with Flagship. This platform will not only feature live streams but also integrate fantasy sports results and betting functionality, further enhancing the viewing experience.

Key to the success of the Flagship service will be the breadth and quality of its content offerings. ESPN has secured several significant rights agreements, including a lucrative 11-year deal with the NBA and WNBA, which will come into force next season. These agreements aim to bolster ESPN’s competitive position by ensuring access to high-demand sports content for its new and existing customer base. The NBA and WNBA deals were acquired as part of a bundled agreement, with Pitaro admitting that ESPN would have been willing to pursue the WNBA rights independently if necessary.

In addition to broadening its core offerings, ESPN is focusing on expanding its engagement with women’s sports. The network’s acquisitions include rights to the National Collegiate Athletic Association (NCAA) and the National Women’s Soccer League (NWSL), which Pitaro believes are critical areas for growth.

While Pitaro is deeply involved in the transformation of ESPN, there are speculations about his future within the wider Disney organisation. He has been suggested as a potential candidate to succeed Disney’s current CEO, Bob Iger, when he steps down in 2026. However, Pitaro remains focused on his current role, expressing enthusiasm for ESPN’s future and commitment to his duties, declining to comment definitively on any plans beyond his current responsibilities.

As ESPN prepares to launch its Flagship platform, it aims to redefine how sports fans consume sports content in a rapidly evolving digital age. The launch represents a significant shift for the sports entertainment network, promising to harness the potential of new digital technologies to maintain and grow its audience in the face of shifting consumer habits.

Source: Noah Wire Services