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Not sure about this source - maybe @ESPNjacket can chime in on where this digital migration stands - but this is the first I've digested this. Admittedly I haven't been paying too close attention though. A quick Google search shows a number of articles at least back to January alluding to ESPN's interest in cord-cutter packages.
ESPN To Cater To Cord Cutters With Limited Streaming Service
ESPN To Cater To Cord Cutters With Limited Streaming Service
“There have been some losses due to cord cutting,” acknowledged John Skipper, President of ESPN. “ESPN has been hit doubly hard by this trend because some consumers have been trading down to smaller packages that don’t include ESPN.”
This is why ESPN is preparing to reveal its own streaming TV package that won’t require a cable subscription. Of course, entering this market will make ESPN a little fish in a giant pond, so they do not intend to include their prime content like basketball or football. Instead, it will aim to include “niche leagues” and “possibly some types of college sports.”
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“Rights are not an issue. It can be done… but there are issues we face doing it. Pricing is one of them,” commented Disney CEO Bob Iger. Clearly, ESPN majority shareholders want to ensure a profit will be realized with making this huge switch to streaming.