ESPN today is debuting the new ESPN+ OTT digital service, with new company President Jimmy Pitaro calling the anticipated initiative the "beginning of a new era of innovation for ESPN.” The multi-sport offering, priced at $4.99 per month or $49.99 per year and marking ESPN’s first direct-to-consumer streaming offering, will be embedded within a newly rebuilt ESPN mobile app and website heightening personalization and content discovery. ESPN+ at launch will include a daily MLB and NHL game, the entire out-of-market MLS schedule, thousands of college events, the entire "30 for 30" archive, studio shows exclusive to the platform such as the Kobe Bryant-written and hosted “Details” and a wide range of other events. “When you compare what we’re offering at this price point to what’s in the market today and what’s coming, we really like our hand,” Pitaro said. “And we’re really just getting started here. We’re proud of what we’ve done, but it’s really still the first inning.” The new ESPN app, described by Pitaro as “a new front door for all things ESPN,” will include three tiers of video: freely available highlights and clips, authenticated TV Everywhere streaming for pay TV subscribers of ESPN and the OTT offerings of ESPN+, with each supported by BAMTech that is now majority owned by ESPN parent company Disney. The rebuilt ESPN app is carrying a presenting sponsorship from Audi, while AmEx is sponsoring the launch of ESPN+, with both cardholders and non-cardholders being offered an extended 30-day free trial subscription during the first week of ESPN+.
POTENTIAL TARGETS: ESPN has identified three primary target audiences for ESPN+: diehard fans of sports and ESPN, fans of niche sports such as cricket and rugby that will see programming for those sports on the service and fans of lesser exposed teams such as mid-major college programs that will see additional airing through the service. That targeting notably does not segment cord-cutters or cord-nevers. During a preview event last week in Bristol, BAMTech CEO Michael Paull sought to emphasize that ESPN+ is designed as an additive offering and not a replacement for lost cable TV subscribers. “When we looked at the different customer segments, we really didn’t look at cord-cutter or cord-never as a particular audience,” Paull said. “We were more looking at different types of sports fans, some of which are pay TV subscribers, and some of which are not. And particularly from a marketing perspective, we thought that was the right way to approach it. I don’t know how to program to cord cutters. But I do know how to program to sports enthusiasts. I do know how to program to niche sports fans.”
WALL STREET SCRUTINY: Despite the effort to steer the debut of ESPN+ away from discussion around lost ESPN subscribers on linear TV, Pitaro said he is all too aware of the pressure and scrutiny around the service’s debut. That pressure, particularly coming from Wall Street, exists while Pitaro said he remains firmly committed to the traditional MVPD ecosystem. He did not specify a particular business target for ESPN+ subscribers, but the effort is a major corporate emphasis for Disney and one that arrives ahead of a planned launch next year of a Disney-branded OTT service that will also be supported by BAMTech. “We’re focused on growing the subscriber base,” Pitaro said of ESPN+. “We’re looking to expand the reach around the ESPN brand. It’s about expanding our audience and expanding the reach for our content. So that obviously translates to growing the number of subscribers. ... This is critical for not only ESPN, but for the Walt Disney company. This is our effort to establish that direct relationship with the customer.”
