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ESPN’s model is eroding. Past and present execs are split on how it can protect its dominance
Disney’s ESPN is at a crucial juncture.
For over four decades, the world’s largest all-sports network has increased its annual revenue by raising cable subscription fees. In the 1980s, ESPN charged pay-TV distributors less than $1 per subscriber per month. By 2023, this fee had risen to $9.42 per subscriber, according to S&P Global Market Intelligence.
However, this business model is deteriorating. Since 2013, millions of Americans have cut their cable TV subscriptions, leading to uncertainty about ESPN’s future in a rapidly evolving media landscape. CNBC spoke with multiple current and former Disney and ESPN executives for the digital documentary “ESPN’s Fight for Dominance,” examining the network’s path forward.
ESPN recently reported a mere 1% growth in domestic and international revenue, reaching $4.4 billion in its latest fiscal quarter. The network can no longer rely on price hikes to offset the declining number of cable customers.
To rejuvenate growth, ESPN has devised a two-part streaming strategy. First, this fall, Disney will offer ESPN outside the traditional cable TV bundle through a joint venture with Warner Bros. Discovery and Fox. This service, which is yet to be priced, will cater to non-cable customers who want to watch sports without paying $80 or $100 monthly for a full bundle of networks.
Second, in fall 2025, ESPN will introduce its flagship streaming service, encompassing all live and on-demand content. This service will feature advanced personalization and integrate with ESPN Bet, the company’s licensed online sportsbook, and fantasy sports to attract younger fans. This offering will surpass ESPN+, currently a $10.99 streaming service that excludes ESPN’s most expensive programming, such as “Monday Night Football.”
“The industry is in a transition phase right now,” ESPN Chairman Jimmy Pitaro stated in an interview for CNBC’s documentary.
“We’re seeing declines in the traditional ecosystem, cable and satellite universe,” Pitaro said. “There’s a transition to digital. That is by far the biggest component of our future.”
Pitaro and head of programming Roz Durant defended ESPN’s growth plan to CNBC, while former Disney and ESPN executives Bob Chapek, John Skipper, and Mark Shapiro highlighted several potential challenges for the network as it navigates its future.
ESPN’s shift to digital has been marked by key initiatives and obstacles. The decline in cable subscriptions has forced ESPN to seek new revenue streams and innovate its content delivery methods to remain relevant in the digital age.
A significant challenge for ESPN is competing with established streaming services like Netflix, Amazon Prime Video, and Disney+. ESPN must differentiate its offerings to attract sports fans amid abundant entertainment options.
Integrating ESPN Bet and fantasy sports into its streaming service is a strategic move to engage a younger, tech-savvy audience. These interactive features can keep viewers more engaged and invested in the content.
Personalization is also crucial in an era where consumers expect tailored content recommendations. By leveraging data analytics and user preferences, ESPN can create a more personalized viewing experience, which could help retain subscribers and attract new ones.
However, the transition to streaming is not without risks. The cost of acquiring and maintaining sports broadcasting rights is extremely high, and ESPN must balance these expenses while offering a competitively priced streaming service. Additionally, ensuring a seamless user experience across various devices and platforms is essential for customer satisfaction.
The competition is intensifying as other networks and streaming platforms invest heavily in sports content. For instance, Amazon has secured exclusive rights to stream NFL Thursday Night Football, and Apple is making moves in sports broadcasting with deals for Major League Baseball and other sports. ESPN must continually innovate to maintain its position as the leader in sports broadcasting.
ESPN’s digital transformation will also require significant investment in technology infrastructure to support high-quality streaming and interactive features. The network must ensure its platform can handle large volumes of traffic, especially during live events, to avoid service disruptions that could frustrate viewers.
In conclusion, ESPN is navigating a pivotal moment in its history. The shift from traditional cable to digital streaming presents both challenges and opportunities. By embracing new technologies, focusing on personalization, and integrating interactive features like sports betting and fantasy sports, ESPN aims to stay ahead in the competitive landscape. The success of this transition will depend on the network’s ability to adapt to changing consumer behaviors and preferences while maintaining its reputation as the premier destination for sports content.
#1 Free Windshield Replacement Service in Arizona and Florida!
Our services include free windshield replacements, door glass, sunroof and back glass replacements on any automotive vehicle. Our service includes mobile service, that way you can enjoy and relax at the comfort of home, work or your choice of address as soon as next day.
Schedule Appointment Now or Call (813) 951-2455 to schedule today.
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Areas Served in Arizona
Phoenix, Sedona, Scottsdale, Mesa, Flagstaff, Tempe, Grand Canyon Village, Yuma, Chandler, Glendale, Prescott, Surprise, Kingman, Peoria, Lake Havasu City, Arizona City, Goodyear, Buckeye, Casa Grande, Page, Sierra Vista, Queen Creek and more!
We work on every year, make and model including
Acura, Aston Martin, Audi, Bentley, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ferrari, Fiat, Ford, Freightliner, Geo, GM, GMC, Honda, Hyundai, Infinity, Jaguar, Jeep, Kia, Lamborghini, Land Rover, Lexus, Lincoln, Maserati, Mazda, McLaren, Mercedes Benz, Mercury, Mini Cooper, Mitsubishi, Nissan, Oldsmobile, Peugeot, Pontiac, Plymouth, Porsche, Ram, Saab, Saturn, Scion, Smart Car, Subaru, Suzuki, Tesla, Toyota, Volkswagen, Volvo and more!
All insurance companies are accepted including
Allstate, State Farm, Geico (Government Employees Insurance Company), Progressive, USAA (United Services Automobile Association), Liberty Mutual, Nationwide, Travelers, Farmers Insurance, American Family Insurance, AAA (American Automobile Association), AIG (American International Group), Zurich Insurance Group, AXA, The Hartford, Erie Insurance, Amica Mutual Insurance, Mercury Insurance, Esurance, MetLife Auto & Home, Safeway and many , many more!
States We Service
Front Windshield Replacement, Door Glass Replacement, Back Glass Replacement, Sun Roof Replacement, Quarter Panel Replacement, Windshield Repair
AutoGlass Services Provided
Front Windshield Replacement, Door Glass Replacement, Back Glass Replacement, Sun Roof Replacement, Quarter Panel Replacement, Windshield Repair
#1 Free Windshield Replacement Service in Arizona and Florida!
Our services include free windshield replacements, door glass, sunroof and back glass replacements on any automotive vehicle. Our service includes mobile service, that way you can enjoy and relax at the comfort of home, work or your choice of address as soon as next day.
Schedule Appointment Now or Call (813) 951-2455 to schedule today.
Areas Served in Florida
Miami, Orlando, Tampa, Jacksonville, Fort Lauderdale, Destin, Naples, Key West, Sarasota, Pensacola, West Palm Beach, St. Augustine, FT Myers, Clearwater, Daytona Beach, St. Petersburg, Gainesville, Kissimmee, Boca Raton, Ocala, Panama City, Panama City Beach, Miami Beach, Bradenton, Cape Coral, The Villages, Palm Beach, Siesta Key, Cocoa Beach, Marco Island, Vero Beach, Port St. Lucie, Pompano Beach, Florida City, Punta Gorda, Stuart, Crystal River, Palm Coast, Port Charlotte and more!
Areas Served in Arizona
Phoenix, Sedona, Scottsdale, Mesa, Flagstaff, Tempe, Grand Canyon Village, Yuma, Chandler, Glendale, Prescott, Surprise, Kingman, Peoria, Lake Havasu City, Arizona City, Goodyear, Buckeye, Casa Grande, Page, Sierra Vista, Queen Creek and more!
We work on every year, make and model including
Acura, Aston Martin, Audi, Bentley, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ferrari, Fiat, Ford, Freightliner, Geo, GM, GMC, Honda, Hyundai, Infinity, Jaguar, Jeep, Kia, Lamborghini, Land Rover, Lexus, Lincoln, Maserati, Mazda, McLaren, Mercedes Benz, Mercury, Mini Cooper, Mitsubishi, Nissan, Oldsmobile, Peugeot, Pontiac, Plymouth, Porsche, Ram, Saab, Saturn, Scion, Smart Car, Subaru, Suzuki, Tesla, Toyota, Volkswagen, Volvo and more!
All insurance companies are accepted including
Allstate, State Farm, Geico (Government Employees Insurance Company), Progressive, USAA (United Services Automobile Association), Liberty Mutual, Nationwide, Travelers, Farmers Insurance, American Family Insurance, AAA (American Automobile Association), AIG (American International Group), Zurich Insurance Group, AXA, The Hartford, Erie Insurance, Amica Mutual Insurance, Mercury Insurance, Esurance, MetLife Auto & Home, Safeway and many , many more!
States We Service
Front Windshield Replacement, Door Glass Replacement, Back Glass Replacement, Sun Roof Replacement, Quarter Panel Replacement, Windshield Repair
AutoGlass Services Provided
Front Windshield Replacement, Door Glass Replacement, Back Glass Replacement, Sun Roof Replacement, Quarter Panel Replacement, Windshield Repair
#1 Free Windshield Replacement Service in Arizona and Florida!
Our services include free windshield replacements, door glass, sunroof and back glass replacements on any automotive vehicle. Our service includes mobile service, that way you can enjoy and relax at the comfort of home, work or your choice of address as soon as next day.
Schedule Appointment Now or Call (813) 951-2455 to schedule today.
Areas Served in Florida
Miami, Orlando, Tampa, Jacksonville, Fort Lauderdale, Destin, Naples, Key West, Sarasota, Pensacola, West Palm Beach, St. Augustine, FT Myers, Clearwater, Daytona Beach, St. Petersburg, Gainesville, Kissimmee, Boca Raton, Ocala, Panama City, Panama City Beach, Miami Beach, Bradenton, Cape Coral, The Villages, Palm Beach, Siesta Key, Cocoa Beach, Marco Island, Vero Beach, Port St. Lucie, Pompano Beach, Florida City, Punta Gorda, Stuart, Crystal River, Palm Coast, Port Charlotte and more!
Areas Served in Arizona
Phoenix, Sedona, Scottsdale, Mesa, Flagstaff, Tempe, Grand Canyon Village, Yuma, Chandler, Glendale, Prescott, Surprise, Kingman, Peoria, Lake Havasu City, Arizona City, Goodyear, Buckeye, Casa Grande, Page, Sierra Vista, Queen Creek and more!
We work on every year, make and model including
Acura, Aston Martin, Audi, Bentley, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ferrari, Fiat, Ford, Freightliner, Geo, GM, GMC, Honda, Hyundai, Infinity, Jaguar, Jeep, Kia, Lamborghini, Land Rover, Lexus, Lincoln, Maserati, Mazda, McLaren, Mercedes Benz, Mercury, Mini Cooper, Mitsubishi, Nissan, Oldsmobile, Peugeot, Pontiac, Plymouth, Porsche, Ram, Saab, Saturn, Scion, Smart Car, Subaru, Suzuki, Tesla, Toyota, Volkswagen, Volvo and more!
All insurance companies are accepted including
Allstate, State Farm, Geico (Government Employees Insurance Company), Progressive, USAA (United Services Automobile Association), Liberty Mutual, Nationwide, Travelers, Farmers Insurance, American Family Insurance, AAA (American Automobile Association), AIG (American International Group), Zurich Insurance Group, AXA, The Hartford, Erie Insurance, Amica Mutual Insurance, Mercury Insurance, Esurance, MetLife Auto & Home, Safeway and many , many more!
States We Service
Front Windshield Replacement, Door Glass Replacement, Back Glass Replacement, Sun Roof Replacement, Quarter Panel Replacement, Windshield Repair
AutoGlass Services Provided
Front Windshield Replacement, Door Glass Replacement, Back Glass Replacement, Sun Roof Replacement, Quarter Panel Replacement, Windshield Repair
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ESPN’s model is eroding. Past and present execs are split on how it can protect its dominance
Disney’s ESPN is at a crucial juncture.
For over four decades, the world’s largest all-sports network has increased its annual revenue by raising cable subscription fees. In the 1980s, ESPN charged pay-TV distributors less than $1 per subscriber per month. By 2023, this fee had risen to $9.42 per subscriber, according to S&P Global Market Intelligence.
However, this business model is deteriorating. Since 2013, millions of Americans have cut their cable TV subscriptions, leading to uncertainty about ESPN’s future in a rapidly evolving media landscape. CNBC spoke with multiple current and former Disney and ESPN executives for the digital documentary “ESPN’s Fight for Dominance,” examining the network’s path forward.
ESPN recently reported a mere 1% growth in domestic and international revenue, reaching $4.4 billion in its latest fiscal quarter. The network can no longer rely on price hikes to offset the declining number of cable customers.
To rejuvenate growth, ESPN has devised a two-part streaming strategy. First, this fall, Disney will offer ESPN outside the traditional cable TV bundle through a joint venture with Warner Bros. Discovery and Fox. This service, which is yet to be priced, will cater to non-cable customers who want to watch sports without paying $80 or $100 monthly for a full bundle of networks.
Second, in fall 2025, ESPN will introduce its flagship streaming service, encompassing all live and on-demand content. This service will feature advanced personalization and integrate with ESPN Bet, the company’s licensed online sportsbook, and fantasy sports to attract younger fans. This offering will surpass ESPN+, currently a $10.99 streaming service that excludes ESPN’s most expensive programming, such as “Monday Night Football.”
“The industry is in a transition phase right now,” ESPN Chairman Jimmy Pitaro stated in an interview for CNBC’s documentary.
“We’re seeing declines in the traditional ecosystem, cable and satellite universe,” Pitaro said. “There’s a transition to digital. That is by far the biggest component of our future.”
Pitaro and head of programming Roz Durant defended ESPN’s growth plan to CNBC, while former Disney and ESPN executives Bob Chapek, John Skipper, and Mark Shapiro highlighted several potential challenges for the network as it navigates its future.
ESPN’s shift to digital has been marked by key initiatives and obstacles. The decline in cable subscriptions has forced ESPN to seek new revenue streams and innovate its content delivery methods to remain relevant in the digital age.
A significant challenge for ESPN is competing with established streaming services like Netflix, Amazon Prime Video, and Disney+. ESPN must differentiate its offerings to attract sports fans amid abundant entertainment options.
Integrating ESPN Bet and fantasy sports into its streaming service is a strategic move to engage a younger, tech-savvy audience. These interactive features can keep viewers more engaged and invested in the content.
Personalization is also crucial in an era where consumers expect tailored content recommendations. By leveraging data analytics and user preferences, ESPN can create a more personalized viewing experience, which could help retain subscribers and attract new ones.
However, the transition to streaming is not without risks. The cost of acquiring and maintaining sports broadcasting rights is extremely high, and ESPN must balance these expenses while offering a competitively priced streaming service. Additionally, ensuring a seamless user experience across various devices and platforms is essential for customer satisfaction.
The competition is intensifying as other networks and streaming platforms invest heavily in sports content. For instance, Amazon has secured exclusive rights to stream NFL Thursday Night Football, and Apple is making moves in sports broadcasting with deals for Major League Baseball and other sports. ESPN must continually innovate to maintain its position as the leader in sports broadcasting.
ESPN’s digital transformation will also require significant investment in technology infrastructure to support high-quality streaming and interactive features. The network must ensure its platform can handle large volumes of traffic, especially during live events, to avoid service disruptions that could frustrate viewers.
In conclusion, ESPN is navigating a pivotal moment in its history. The shift from traditional cable to digital streaming presents both challenges and opportunities. By embracing new technologies, focusing on personalization, and integrating interactive features like sports betting and fantasy sports, ESPN aims to stay ahead in the competitive landscape. The success of this transition will depend on the network’s ability to adapt to changing consumer behaviors and preferences while maintaining its reputation as the premier destination for sports content.