In order to make the switch from traditional linear TV to streaming for the ESPN sports network easier, Disney is looking into potential partners including the National Basketball Association (NBA) and the National Football League (NFL).
In order to effect this transition, Disney is currently putting its ambitious plan into action.
ESPN Invites NBA and NFL as Investors
The National Basketball Association and the National Football League were the subjects of discussions between ESPN’s Jimmy Pitaro and Disney CEO Bob Iger regarding the possibility of including them as minor investors in the sports network, according to sources with CNBC.
This strategic move aims to adapt ESPN to the evolving media consumption landscape, which has seen a growth in the fame and acceptance of streaming services in recent years.
In order to enhance ESPN’s streaming capabilities and make them more appealing to a larger audience, Disney plans to make use of the NBA and NFL’s influence, fan base, and content. In order to do this, the company will extend invitations to both groups to invest as minorities.
When questioned about the prospect of offloading some of Disney’s linear TV assets, such as ABC, he pointed out that ESPN’s sports programming is still quite powerful and has the potential to reach millions of viewers.
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Implications for Competing Networks
If the sports leagues decide to invest in ESPN, CNBC points out that some of Disney’s rivals, including NBCUniversal and Fox, may feel the wrath.
This is due to the possibility that, should the leagues decide to invest in ESPN, clubs will work more closely with one network rather than with other networks.
The National Football League and the National Basketball Association, both of which regularly negotiate lucrative agreements with a variety of media partners throughout the season, may experience a decline in revenue as a result of this.
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