Disney's new ESPN app reaches for sports fans outside cable TV

A 3D printed Disney logo, July 13, 2021
Reuters

Walt Disney’s (DIS.N) ESPN will make its full line-up of sports coverage available outside of pay television for the first time on Thursday, with the launch of a new app designed as a central hub for live matches, personalised news, statistics and highlights.

The app marks Disney’s bid to win back some of the tens of millions of subscribers the flagship sports channel has lost since 2010 amid the rise of streaming television. Unlike the more limited ESPN+ service introduced in 2018, the new platform has been designed to meet the preferences of today’s sports fans, executives said.

“We know that fans don’t just want to watch,” ESPN Chairman Jimmy Pitaro told reporters. “They want an experience. They want to interact.”

The app will feature more than 47,000 live events each year, including the NFL, NBA, WNBA, NHL, college football, tennis, golf and more. It will cost $30 a month, with an introductory deal bundling in ad-supported versions of Disney+ and Hulu at no extra charge.

Users will be able to personalise their experience by selecting favourite teams and sports, generating tailored news and recap shows such as SportsCenter. Artificial intelligence will provide narration in the voices of ESPN anchors, while a new “Verts” feature will serve up vertical, scroll-friendly highlights. Fantasy player statistics will appear alongside live games, and an ESPN Bet tab will display live, settled and upcoming wagers for those linking betting accounts.

Disney Chief Executive Bob Iger has hailed the app as “a sports fan’s dream.” Analysts view it as a way for Disney to capture audiences outside traditional cable rather than a mass shift from pay television. ESPN reached 100 million households via pay TV in 2010, but by July this year that figure had dropped to around 61 million.

“It’s another step in Disney’s pivot to streaming, and a sign of its importance to the company as a whole,” said Robert Fishman, analyst at MoffettNathanson.

The app will be heavily promoted, with actor John Cena fronting adverts under the slogan “All of ESPN. All in One Place.” Pitaro stressed that pay television would “remain a big part” of the business. In the quarter ending in June, ESPN delivered $1 billion of Disney’s $4.6 billion operating income – almost 22 per cent – with the bulk coming from distribution fees and advertising.

Subscribers to pay TV will also be able to access the new app. Pitaro said the aim was to encourage all customers to use it, calling it “by far the best, the most holistic experience.”

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