ESPN woos NFL into major deal before streaming launch

Disney continues to explore bundling sports packages with other companies.

ESPN woos NFL into major deal before streaming launch
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In the precarity of the streaming era, there’s one sure bet every platform is chasing: Sports. Roku’s got the X Games, Apple has F1, Netflix has WWE and is edging in on some football games. Disney’s got a major head start with ownership of ESPN, the sports network that will soon launch its own standalone streaming service (which you can, of course, bundle with Disney+ and Hulu). Now Disney will further assert its dominance in the sports space via a major new deal with the National Football League.

Under the deal, which was announced Tuesday, the NFL will acquire a 10 percent stake in ESPN, per The Hollywood Reporter. In exchange, Disney will fully own NFL Network, and ESPN’s fantasy football will merge with NFL Media’s fantasy football. ESPN will get the rights to the “RedZone” brand, and the channel will be added to Disney’s linear portfolio. Plus, the NFL will “license games, RedZone, NFL Films programming and other content and rights to ESPN.”

“Today’s announcement paves the way for the world’s leading sports media brand and America’s most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can,” Disney CEO Bob Iger said in a statement (via THR). “Commissioner Goodell and the NFL have built outstanding media assets, and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney’s streaming ecosystem.”

“Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love,” NFL Commissioner Roger Goodell said in his own statement. “Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered. The Network’s sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways.”

Disney is sure to juice a lot out of this deal, especially since its competitors (YouTube, Amazon, Netflix, etc.) all hold various NFL rights to broadcast games—no doubt the company wishes to tower over them all. When it comes down to brass tax, THR reports that ESPN will broadcast three more games (from 25 to 28) under the deal. The league will “continue to fully own NFL Films, NFL+, and other digital assets.” 

The previously announced ESPN streaming service is set to launch on August 21. In the meantime, the entertainment conglomerate is not done looking for ways to profit off of sports. On Disney’s latest quarterly earnings call, Iger said the company is exploring opportunities to bundle sports packages with other companies. “The more sports can be offered in one destination for the consumer, or if we can improve the ease of use for consumers, ease of finding things,” the better, he said (via Deadline). “As a devoted sports fan, I often have to work to try to find what platform sports are on. If we can help consumers in that regard, we’re certainly going to try.”

The Hollywood Reporter makes one interesting note: The ESPN-NFL deal will have to go through regulatory approval, and “some are wondering whether the administration could take a close look at the deal in a bid to seek concessions from Disney or the NFL.” We know Donald Trump’s FCC is not above shaking down American companies for cash, and Disney has already shown a willingness to bend after settling an ABC lawsuit that was paid out to Trump’s presidential library. We’ll see if this flashy deal prompts any mafia-esque hijinks from the highest office in the land!

 
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