ESPN’s New App Surpasses Expectations Yet Faces Major Upcoming Challenge

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ESPN’s New App Surpasses Expectations Yet Faces Major Upcoming Challenge

ESPN’s new streaming-focused app is gaining traction with sports enthusiasts. Recent data indicates that the app garnered approximately 2.1 million subscribers in the U.S. from August 21 to September, according to subscription analytics firm Antenna.

Subscriber Breakdown and Expectations

Of the new signups, about 1.2 million, or 57%, opted for the full ESPN service. This marks the first time the sports network offered this version outside traditional pay-TV packages, priced at $30 monthly. The remainder chose ESPN Select (previously known as ESPN+), which provides a more limited selection of live sports, original content, and a variety of documentaries, including the renowned “30 for 30” series.

Analysts remain optimistic about ESPN’s direct-to-consumer initiative. Wells Fargo’s Steven Cahall forecasts that standalone ESPN could reach between 1.5 million and 2 million subscribers by year’s end. Wolfe Research’s Peter Supino suggests a target of 1.75 million, while Lightshed’s Rich Greenfield estimates around 2 million.

Upcoming Tests for the App

While ESPN’s direct access service is on track to achieve these projections, challenges lie ahead. In January, as the NFL and college football seasons conclude, the app will face critical scrutiny. Historical patterns suggest that maintaining subscribers post-football season is difficult. For instance, YouTube TV has experienced subscriber losses as the football season ended.

Streaming services, including ESPN’s, are inherently easier to cancel than traditional cable packages. If ESPN cannot sustain its growth during this period, it may struggle with its long-term viability in a shifting media landscape.

Competitive Streaming Landscape

ESPN is not alone in the move to direct-to-consumer offerings. Networks like CNN and Fox have also started similar initiatives. CNN recently launched CNN All Access for $7 per month, while Fox introduced Fox One, priced at $20. Fox One gained 1.1 million signups in the same timeframe as ESPN, thanks to the growing popularity of direct streaming options.

Traditional pay-TV packages typically cost over $90 per month.
YouTube TV charges approximately $83, while DirecTV offers a sports bundle for around $70.

Although these bundles remain financially beneficial for networks—ensuring revenue from each subscriber, many of whom may never watch the channels—ESPN recognizes the need to adapt to consumer demands, particularly among younger viewers. By offering a hybrid approach of direct-to-consumer access alongside traditional bundling, ESPN seeks to stay relevant in a competitive market.

Bundling Solutions for Subscribers

ESPN is experimenting with various bundling models. For $40 monthly, subscribers can obtain both standalone ESPN and Fox One. Alternatively, they can opt for ESPN with NFL+ and enjoy additional content like the RedZone channel, alongside Disney+ and Hulu.

For those interested in a more economical choice, ESPN offers a combined package with Disney+ and Hulu for $30, free for the first year, with subsequent annual fees rising to $36 for ads or $45 for ad-free options.

While neither ESPN nor Fox has set long-term subscriber expectations, voices from both organizations acknowledge the unpredictability of the streaming market. As competition heats up, ESPN must navigate these challenges carefully to maintain and grow its subscriber base.