Gizmo_Duck
blathering blatherskite!
A lot of smoke around this one
The strategic partner for ESPN is expected to come from the tech world — with companies such as Apple, Amazon, Google, Microsoft, Verizon and T-Mobile all on the radar, The Post has learned.
While those companies are all possibilities, the list does not end there. There is some level of interest from most of the major tech world.
The tech platforms are the clear direction Disney/ESPN is looking for as it seeks a minority investment, which Disney CEO Bob Iger first discussed publicly earlier this month in an interview with CNBC.
ESPN/Disney’s main motive is to improve distribution when it takes the full ESPN product direct-to-consumer, which sources reiterated likely will occur in 2025, but is expected to happen no later than 2026.
When it does occur, ESPN the mothership will remain available on cable television and cord-cutters will be able to stream it directly.
What one of the big tech or mobile companies could offer is improved distribution, which historically is how dominance in media is won, dating back to the first days of the printing press.
ESPN became the most powerful sports network in the world by combining its dual revenue streams of cable fees through national distribution and advertising. With the acceleration of cord cutting, ESPN is now in around 72 million homes.
With each household paying in the neighborhood of $10 per month, the company is still earning three quarters of a billion dollars per month in cable fees. That is still an insane amount of dough, but ESPN was once in more than 110 million homes.
That is why the idea of being pre-loaded onto iPhones or other devices to lead in the next frontier of distribution is appealing to ESPN. Apple is known to be very finickity in its negotiations, but if anyone could close a deal with Apple, it may be Iger, who was on their board.
Apple’s plan in sports is to have global distribution through subscriptions. The company began a 10-year, $2.5 billion deal with MLS this season.
In theory, this objective makes a lot of sense, but acquiring the rights to events — such as the NFL, NBA, MLB and college football — could take decades and there are no guarantees it will even happen.
ESPN already has the most rights deals of any company, which could, in practice, speed up Apple’s timeline. And ESPN would be able to handle the live-event and studio production, a division Apple does not currently have.
Though Apple makes a lot of sense as a partner for ESPN, they are not alone. As CNBC previously reported, ESPN has spoken to major sports leagues including the NFL, NBA and MLB.
Maybe those leagues become an option, but distribution with a small equity stake in ESPN is likely where this will end up.
With Disney probably valuing ESPN in the $40 billion-$50 billion range, it would mean a company would need a $4 billion or $5 billion buy-in for a 10 percent stake in ESPN.
The tech companies are the ones with the keys to distribution and the vaults to pay the entry fee. ESPN has rights to the most major sports programming and the workforce to produce them.
No deal is close, but the tech companies should be considered the favorites.
Buying ESPN doesn’t look smart rn. Media rights are keeping them alive . If I’m a giant tech company with the bread I’d just go directly to the leagues.i don’t need a network dedicated to sports to be a major player in sports .
Plus the pandemic was a stimulus for content creators.The content creation era really has been supercharged since like 2014-15
I remember around the time Youtube was in its formative years maybe late 04 early 05. I was at a meeting with some of the executive producers and some money guys at MTV and I was like Youtube is going to be the death of us TV guys and they almost laughed me out of the room just about 20 years later here we are.
Please sale ABC so they won't have Disney money when it comes to the next NBA rights deal.
That could be true but it's not like most NBA players are struggling lol.That’s less money for black
People
Tho