ESPN Chairman Jimmy Pitaro was interviewed by Sports Business Journal and discussed his company’s streaming future and partnerships. In the interview, Pitaro gave insight into the launch of the upcoming standalone “Flagship” direct-to-consumer app, the company’s futures with the MLB and UFC.
The Upcoming ESPN DTC App, aka “Flagship”
Later this year, ahead of the NFL season, ESPN is expected to launch its standalone “Flagship” app. The direct-to-consumer app is expected to have an estimated $25-$30 monthly fee. Pitaro told SBJ the following:
“We’re on schedule to launch this fall,” he said. “It’s helpful to think about it in two ways. First off, we will be making all of our channels, all of our content, available direct-to-consumer for the first time. Part two is a significantly enhanced ESPN app.”
Pitaro also stated that the enhanced ESPN app will have better commerce, betting, and stat integration. Additionally, the app will give users an enhanced viewing experience with multi-screen across devices and a personalized SportsCenter
Content-wise, subscribers can expect all of their ESPN content in one place, which includes sports played on linear channels ESPN, ESPN2, ESPNU, ESPNEWS, and ESPN+. There have been reports that ESPN could acquire NFL Media in a $2 billion deal. This would potentially give Flagship subscribers access to NFL+, NFL Network, NFL RedZone, and much more, in addition to other sports like the NBA, NHL, and college sports.
The Futures of MLB & UFC
Pitaro discussed the futures of the MLB and the UFC during the interview. Earlier this year, ESPN opted out of its contract with MLB, severing a 35-year relationship. During the SBJ interview, Pitaro stated that his network is still interested in some type of relationship with baseball:
“I have to be fiscally responsible and disciplined,” said Pitaro. “It does not mean that we are not interested in remaining in business with Major League Baseball. I’ve been consistent that we are still interested in national games. We’re interested in other components of our package. We’re interested in postseason, but we also are very, very interested in local, whether that’s in market or out of market.”
With that, Pitaro also stated that “everything is on the table,” including MLB.TV, there have been reports of the MLB licensing out its platform to other streamers. It has been well-reported that baseball wants to become more streaming-friendly when it secures its next media contract in 2028. As ESPN prepares its launch for the standalone app, there is a possibility that MLB, NBA, and NHL fans can stream their local teams if it can work out a deal with FanDuel Sports Networks RSNs.
ESPN’s exclusive negotiating window with UFC expires on Tuesday, April 15, and Pitaro told SBJ the following about its future with the network:
“I wouldn’t read too much into that. We’re not hyper-focused on that window. We know that there’s going to be interest in the UFC and that’s great for the sport. It’s great for them, but we remain interested in trying to figure something out with those guys,” said Pitaro.
Pitaro said the UFC was the marquee property of ESPN+ at launch and still is to this day. In 2018, the UFC and ESPN agreed to a deal, which began in 2019, for five years and $1.5 billion for domestic rights. That deal began in 2019 and was extended for two years, giving ESPN+ rights to exclusively stream UFC pay-per-views.
In addition to the MLB, ESPN has declined to renew its Formula One Racing rights beyond 2025. As Pitaro’s network continues to be “fiscally responsible and disciplined,” the UFC may look elsewhere for broadcast partners. Notably, the TKO Group, the fighting promotion’s parent company, also owns the WWE, who agreed to a 10-year, $5 billion deal with Netflix. The UFC could look to the world’s largest streaming platform to attract a larger audience and for corporate synergy.
Watch Pitaro’s full interview with SBJ’s ESPN Austin Karp and Mollie Cahillane here
Credit: Sports Business Journal