ESPN, as we've known it for the last 40 years, is in its end game. ESPN President Jimmy Pitaro doesn't shy away from that.
A version of this article first appeared in the CNBC Sport newsletter with Alex Sherman, which brings you the biggest news and exclusive interviews from the worlds of sports business and media. Sign up to receive future editions, straight to your inbox. ESPN, as we've known it for the last 40 years, is in its end game. ESPN President Jimmy Pitaro , who I spoke with this week in an exclusive interview, doesn't shy away from that.
In recent years, ESPN has renewed long-term deals to carry Monday Night Football, the NBA, the WNBA, the NHL, MLB, the College Football Playoffs, the Big 12, the ACC, the Masters, Wimbledon, UFC … you get the idea.The CNBC Sport newsletter with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports business and media, delivered weekly to your inbox.
While subs decline, the cost of major sports rights has skyrocketed. ESPN will soon pay about $2.6 billion per year for the NBA, beginning next season, based on the terms of its recent renewal. That's up from $1.4 billion per season in its deal that ends after this year. Disney pays another $2.6 billion per year for Monday Night Football – up 30% from its previous deal.
"There are pros and cons," Pitaro said. ", you have access to the customer, you have access to the data. You can take that data and create a more personalized experience for the sports fan. However, the traditional world is really good to ESPN, and it's really good to the Walt Disney Company. There's also less churn in the traditional world. So we all know sports are seasonal, and so one of the concerns that we have with the direct-to-consumer model is churn.
which currently goes for $11.99 per month, and less than Venu, the joint-venture sports streaming service that's currently on hold
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