ESPN+ Bets on Exclusivity to Drive Growth

As streamers like Peacock and Paramount+ move into sports and snap up smaller properties, ESPN+ is going for the big leagues. Disney debuted ESPN+ three years ago, kicking off a sports streaming craze. The platform became the first U.S. streaming service dedicated to sports, and now viewers are seeing some of the country's biggest leagues head over to the streamer. It's all part of an effort to substantially grow ESPN+'s subscriber base, which hit 13.8 million this spring. (The company is expected to provide updated subscriber figure during its quarterly earnings announcement Thursday afternoon.) ESPN+ was featured prominently in several big sports deals that Disney has struck this year, including an agreement with the NHL that will bring the hockey league’s 1,000-plus out-of-market games exclusively to the platform. Why Streaming Services Are Bingeing on Sports Rights Deals “We've always been a company based on believing in the power of exclusivity,” Russell Wolff, evp and general manager of ESPN+, told Adweek. “Our ability to do what drives success is rooted in the understanding of audiences and fans, and how to connect with them in multiple ways.” And Disney is ready to reach hockey fans across multiple platforms. ABC has the rights to four of the next seven Stanley Cup Finals, and will have the ability to simulcast the games on ESPN+ and other ESPN networks. Additionally, 75 national regular-season games each season will be produced on ESPN and stream exclusively on ESPN+ and Hulu. “We were very interested in getting that exclusively for ESPN+, and that was one of the absolute tentpoles and priorities from our perspective as that conversation matured,” Burke Magnus, president of programming and original content for ESPN, told Adweek. “That’s a perfect example of something that checks all the boxes, both for us in terms of our priorities of growing a new business, but also for a rights holder who wants big reach and to find fans and grow their audience.” Striking the right balance Earlier this year, Disney extended Major League Baseball rights to ESPN+ in a substantial seven-year deal, which Magnus described as “paramount.” That agreement will bring 30 exclusive regular-season games to ESPN, including 25 Sunday Night Baseball telecast and the MLB Little League Classic, along with five additional games every season that include the national Opening Night telecast. The company also set a new pact with the NFL that will allow all ABC and ESPN games to be simulcast on ESPN+, as well as enable subscribers to stream one international series game exclusively every season. “I think our role in the sports landscape is clear and syncs up with ESPN’s ever-present mission, which is to serve sports fans anytime anywhere,” said Wolff. “We’re trying to build ESPN+ to be the biggest sports streaming service in the country.” However, “you can’t do that with just tertiary rights, and you can’t do that with just big rights,” Wolff added. “We think we’ve got a nice balance between major events and major sports, and finding the long tail that appeals to sports fans in all corners.” Central to the bundle While Disney+'s launch had been Disney's top priority in 2019, the company is also focusing on its other streaming properties. “Streaming is obviously central and critical to where The Walt Disney Company is going, and direct to consumer specifically, and ESPN+ as the sports piece of it is a huge priority inside the company,” said Wolff. ESPN+ hit 13.8 million subscribers in the second quarter, and on Friday will bump its price up $1 per month to $6.99 or $69.99 a year. The streamer is offered as part of the Disney Bundle, which offers access to Disney+, ESPN+ and Hulu for $12.99 a month and represents the company’s biggest growth engine. “Other people are streaming sports, and we have a sports streaming service,” said Wolff. “And our sports streaming service is in our bundled offering. We’re giving fans the choice. The bundle is the best value we offer across the company, and we’re encouraging fans to sign up for it.”

Streaming & OTT

ESPN+ Bets on Exclusivity to Drive Growth

The company doubles down on major deals in its effort to become the country's biggest sports streamer

Mollie Cahillane

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Mollie Cahillane