At long last, Disney announced last week that it would be taking ESPN direct-to-consumer.
The platform, which we now know will be called “ESPN,” will initially be priced at $30 per month and include everything the Worldwide Leader has to offer: its linear networks, library of on-demand content, and even ESPN+.
Wait, shouldn’t this service be replacing ESPN+?
That’s what many consumers, and some of the approximately 25 million current ESPN+ subscribers, are likely asking. But for now, ESPN+ will stay as-is. Instead of ESPN+, however, it will be known as the “select plan” and still be priced at its current rate, $12 per month.
Why would ESPN want to keep ESPN+ alive?
Well, there’s a few reasons. For one, it means that the network can continue to collect monthly subscription fees from 25 million customers. But perhaps more importantly, the platform has contractual obligations to fulfill.
According to Disney executive Rita Ferro in an interview with Adweek, “We have a lot of rights deals across the marketplace that were done as part of ESPN+; the UFC is one of them, and also some of the college sports. That product will continue to exist because there is a marketplace for it—ESPN+ has over 30,000 hours of live events.”
Ferro is right. In addition to having exclusive deals with UFC and various college sports, ESPN+ has exclusive rights to PGA Tour Live, NHL games, and more that subscribers specifically sign up for.
But beyond the media rights obligations, ESPN now sees its “select plan” as an entry point into the larger, premium platform that is “ESPN.” Ideally, the network will be able to convert a portion of the 25 million ESPN+ subscribers into full-on ESPN subscribers.
At some point, when current media rights agreements slowly phase out, it’s likely that ESPN+ (or the “select plan”) goes away too. But for now, with ESPN+ still housing a large volume of exclusive content, ESPN seems to be fitting the platform into its bigger picture plans.