ESPN's Jimmy Pitaro Reflects on ESPN Turning 45, Launch of a New App in 2025, and the Role of AI, RSNs We want to be at least part of the solution [to the RSN marketplace]-ESPN Chairperson Jimmy Pitaro By Ken Kerschbaumer Wednesday, September 18, 2024 - 10:50 am
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ESPN celebrated its 45th anniversary earlier this month and ESPN Chairperson Jimmy Pitaro reflected on the anniversary as well as the future of ESPN, the launch of a new streaming platform in 2025, and much more during an ESPN's annual Media Day.
It all starts with rights, Pitaro said of the reason he is bullish on ESPN's future as it begins year 45, pointing specifically to deals with the NBA, the NCAA, and college football as prime recent examples. We've done an amazing job, in my opinion, of acquiring marquee rights, championship rights, and differentiating rights with discipline. And we take a ton of pride in that, and I think we are very well set up for the foreseeable future from a live game perspective.
Those rights, he adds, are not just important from a linear perspective but also for ESPN's role as a multi-platform sports ecosystem. And in 2025 ESPN will take another step forward into that ecosystem with the launch of a new direct-to-consumer service with the internal code name of Flagship.
We need to be everywhere, and when I say everywhere, of course that means linear television and we will continue to be made available through the MVPD ecosystem, said Pitaro. But perhaps more importantly it means being more present digital platforms.
Flagship, said Pitaro, will build off of ESPN+ which was launched in 2018 in part to help the ESPN team get the tech stack right and prove that ESPN could handle live sports at scale on a digital platform. But ESPN+, for the most part, does not feature content that is available on ESPN's primary linear channels. The new service will change that.
It will be all of our linear networks, including our college networks, and it also will include ESPN+, says Pitaro. Everything that you're getting today by paying 12 bucks a month will be included in flagship, and we're pretty excited about it. But at the same time, we also, we know that this can't be as simple as just flipping the switch. We know that our product needs to be enhanced and it's an understatement to say that we have all hands on deck right now from a product and development perspective, front-end tech, back-end, tech design interface, all of that.
With respect to enhancements, Pitaro pointed to things like tying video programming together with the fantasy business and, yes, deep connective tissue between video programming and ESPN BET and linking ESPN BET to the ESPN DTC account.
If you're watching Monday Night Football and you've placed a bet, you'll be able to see that betting information powered by Penn and ESPN Bet on the shoulders of the video programming, he added. You'll see your fantasy lineup, you'll see your contextually relevant bets, you're going to see significant commerce integration. And then there will be enhanced stats that are relevant to the video, contextually relevant stats, more personalization, more customization, and of course, multi-screen.
Pitaro also said the DTC service could be a place where regional sports network could be available as an upsell.
We want to be at least part of the solution [to the RSN marketplace] and I very much believe that flagship should be part of the solution, he said. If you are within the ESPN environment we can geo-target you, recognize where you are, and serve you local in-market games. And we have made that point to the various leagues the various commissioners that we are very interested in stepping up here. By the way, it doesn't necessarily have to be in connection with flagship; it can be an upsell as a part of flagship and we could also make these games available within the ESPN app. Our reach is a very valuable asset to the leagues if they're focused on attracting or speaking to as many of their fans as possible. And we're not at all asking or requiring exclusivity; we just want to be part of the solution and be the starting point for sports fans.
Pitaro also believes the studio programming will continue to be a big part of the reason people will subscribe to a new ESPN service in 2025.
It wasn't very long ago where I would hear repeatedly, why are you guys continuing to invest in studio programming when every highlight is just one click away?, he explained. And if you look at our ratings, it's staggering. If you look at Get Up, First Take, Pat McAfee, SportsCenter our ratings throughout the day are really impressive. And we take a ton of pride in the fact that ratings are growing for studio program in a world of cord cutting. But that's because ESPN is the place of record and delivering the news with personality, charm, charisma, and authority. And that, to me, sets us up well for the future, including in a direct-to-consumer world.
ESPN is also, of course, looking to be part of another DTC effort with Venu Sports. ESPN, alongside WBD and Fox Sports, looked to launch Venu Sports this fall but a U.S. judge blocked the launch following a lawsuit from virtual MVPD Fubo.
As we've said publicly, we do respectfully disagree with the court's decision on the preliminary injunction, and we filed our notice of appeal, said Pitaro. We believe that Venu is a pro-competitive service, is pro consumer, pro sports fan, and we believe it's giving the sports fan another option. It's primarily directed at sports fans that are on the sidelines today, whether they're on the sidelines because they've cut the cord or they've never subscribed to the traditional ecosystem.
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