Disney’s ESPN is pivoting to a standalone streaming service, according to The Wall Street Journal. The sports channel will continue to be available on conventional cable, however the bold move signals a major transition to streamers.
ESPN+ was Disney’s first rollout of a sports-centered streaming service, but its offerings were limited in comparison to the flagship properties of ESPN. The ESPN streaming service will feature its popular shows, such as SportsCenter and First Take, and live sports, including the NFL and NBA.
The media industry has felt the pressure of the latest technological advances, coupled with a weakening economy and changes in consumer behavior, intensifying in recent years. Labeled “the cord cutters,” streamers are gaining momentum in their proliferation as the central source for media entertainment and the fallout is rifting through some of the most successful companies.
In April, ESPN Chair Jimmy Pitaro announced a reorganization that would require a number of layoffs affecting management roles at the network, according to the Sports Business Journal.
“Disney is reducing its workforce by approximately 7,000 jobs as part of a strategic and streamlined realignment,” a memo to employees from Pitaro states. “Today I am sharing the difficult news that we are beginning to notify ESPN employees whose positions are impacted.”
The memo continues, “As we advance as a core segment of Disney, with operational control and financial responsibility, we must further identify ways to be efficient and nimble. We will continue to focus our workforce on initiatives that are most closely aligned with our critical priorities and emphasize decision-making and responsibility deeper into the organization.
His announcement follows Thursday Night Football’s shift to Amazon Prime and major adjustments by competitor Fox Sports, while proceeding a range of layoffs, closures, and bankruptcy filings among news media companies.
“Our overarching mission is to serve the sports fan anytime, anywhere,” Pitaro said in a 2021 interview on CNBC’s Tech Check. “If our fans want to consume ESPN through traditional means, like cable or satellite, we deliver. If they want to consume digitally through our app or through our website, we deliver there, as well. The point is that we’re successfully navigating the evolution in consumer choice.”
