By Jaspreet Singh
(Reuters) – Walt Disney said on Tuesday its new streaming service would be named ESPN and cost $29.99 per month, as the media company aims to tap sports fans who have never subscribed to traditional television.
The new service, which is set for launch this fall, will provide access to ESPN networks, including professional and college football and basketball games.
“We are providing everything ESPN has to offer directly to fans and all in one place,” ESPN Chairman Jimmy Pitaro said.
Media companies, including Paramount Global, Comcast and Disney, are doubling down on sports content to curb subscriber churn, boost engagement and bolster their ad-supported tiers in a competitive market.
The announcement comes a day after Fox Corp said its new subscription-based streaming service would be called “Fox One” and was set to launch before the fall American football season.
Disney said subscribers would be given an option to bundle ESPN with Disney+ and Hulu streaming services at $35.99 per month, with a promotional monthly price of $29.99 for the first year.
The upcoming ESPN streaming service could be a bargain for people who still subscribe to “$100 cable- or internet-delivered live TV” packages to access ESPN channels, said Paul Verna, vice president of content at Emarketer.
“ESPN won’t offer anything close to the full suite of sports programming that most live TV packages provide, so true sports fans might feel torn between signing up for the new service or sticking with broader pay TV bundles,” he added.
In 2024, Disney’s ESPN, Comcast-owned NBCUniversal and Amazon clinched the rights to carry National Basketball Association games in an 11-year deal valued at $77 billion. Such deals underscore the value of live sports in attracting new subscribers and advertisers.
Disney, Fox and Warner Bros Discovery earlier this year abandoned plans to launch their live sports joint venture Venu Sports after it ran into substantial legal opposition. It was meant to attract sports fans who either canceled or never subscribed to cable TV.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Anil D’Silva)
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