ESPN and its Premium Streaming Endeavors

Onn April 12th, ESPN will launch its new premium sports streaming service, ESPN +,  another step in major traditional broadcast companies pushing toward more direct-to-consumer content, and generating revenue from a potentially massively untapped market.

The streaming industry is risky, but already has proven to be a soluble method of selling music and movies to a larger market. Now additional a la carte streaming services marketed as cheaper alternatives to traditional cable providers are becoming even more popular.

The $4.99 a month ESPN streaming service is integrated directly into the already existing ESPN app but is missing one key component, ESPN itself. The main channel is absent from this service, instead providing users with more on-demand content, as well as access to one free game a day from MLB or NHL along with streaming other smaller-scale sports.

ESPN is surely reacting to monster revenue numbers from companies like Netflix which exceeded a modest $11 billion in revenue for Q4 2017 while also adding 24 million memberships in that quarter. A worry many streaming services experience is losing customer loyalty and the serious impact of a drop in subscriptions.  Netflix, however, is the prime example of generating the most money without losing significant numbers of subscribers.

Periodically news will release about a hike in Netflix subscription prices.  In its early years a Netflix subscription started at a humble $7.99.  Subsequently Netflix  began charging more for their monthly subscriptions. Subscriber rates did have periods of slower growth, yet the company never experienced a drop in subscriber rates. From Dec 2016 to Dec 2017, average ROI doubled for stock holders. There are now so many different streaming services available from traditional broadcast and internet media companies competing for consumer attention,  it’s clear that streaming quality content simply works for consumers in 2018.

ESPN competes with Fox Sports and CBS Sports streaming apps among several others. Without providing the main sports channel, ESPN tries to compensate. For example, the Khan vs Lo Greco boxing bout, PGA events,  tennis tournaments and a plethora of college sports are available on ESPN +  If the service garners traction it could be a big win for ESPN and its parent company Disney, and make it much easier for sports fans to cut the cord on their existing cable subscription.

Follow us on social media for the latest updates in B2B!

Image

Latest

data center construction
Data Center Construction Demands Are Surging But Power, Permitting, and Planning Are Holding It Back
April 1, 2025

Explosive demand for artificial intelligence, cloud services, and low-latency connectivity is reshaping the landscape for data center construction in the U.S. With hyperscalers and enterprises alike racing to deploy infrastructure closer to end users, new builds are increasingly challenged by the need for high-capacity power, complex permitting, and skilled labor. According to CBRE, U.S….

Read More
intelligent audio systems
Redefining Security: The Critical Role of Voice in Intelligent Audio Systems
April 1, 2025

In the world of security technology, vision has long taken precedence—cameras, analytics, and access control have dominated the conversation. But what if we’ve been underestimating our oldest, most human sense of communication: voice? The rise of intelligent audio in security systems marks a turning point in how we protect spaces and people, shifting from passive…

Read More
How PSA is Empowering Integrators to Navigate AI, Mobile Credentials, and Modern Business Challenges?
April 1, 2025

As the security integration industry contends with rapid technological advancement and increasing business complexity, many integrators are looking for the tools, training, and guidance to keep pace. At the center of this evolution is AI—transforming not just the products integrators deploy but also the way they operate their businesses. Meanwhile, the shift to mobile credentials…

Read More
biometric face authentication
Biometric Face Authentication Moves from High-Security to High-Convenience
April 1, 2025

Facial recognition technology has long hovered on the fringe of mainstream adoption, promising futuristic solutions but often shackled by high costs, limited applications, and public skepticism. In 2024, however, a pivotal shift is underway. Thanks to advances in edge devices, reduced price points, and changing attitudes toward digital identity, biometric face authentication is now…

Read More