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Credit: Inside The MagicLast week, Disney announced that advertising for its linear cable channels remained flat, despite Disney-owned ESPN’s stake in all four major sports networks. With sports as the main draw for linear cable, it was surprising that Disney could not generate more ad revenue for this season.
However, with more people cutting the cord, this slow downfall of linear cable is expected and a potential sign of things to come. However, The Walt Disney Company is working on throwing itself a lifeline when cable television ultimately sinks.
The Athletic reports that Disney and ESPN have struck a deal with the National Football League to buy the league’s media properties and give the NFL a stake in ESPN. With ESPN expected to announce its streaming-only service as early as later this month, this move solidifies ESPN’s place as a necessary purchase for all football fans, giving Disney a new streaming service to keep the company’s cable division afloat despite the pending death of cable.
ESPN will take over the NFL’s Red Zone, the NFL Network, and the NFL’s online fantasy football services. ESPN will also get an additional seven regular-season NFL games, including six stand-alone international games.
This deal gave ESPN a new streaming platform for all four major sports. ESPN had broken off negotiations with Major League Baseball, and their deal was set to expire after this season; however, ESPN and MLB have resumed negotiations for the Disney-owned network to keep the league’s rights.
Having the big four of sports on your streaming service is key, but having the NFL is crucial. Now, with the NFL having a part ownership of ESPN, its relationship with Disney is sure to continue well into the future, guaranteeing ESPN’s success.
In 2024, the NFL owned 72 of the top 100 most-watched streaming and cable television programs. The only reason the NFL had only six of the top 10 was that it was an election year, and debate coverage overtook the league. If it weren’t for politics, the NFL would have had the top 17 most-watched programs last year.
ESPN will now have access to the NFL’s entire library of films, and more importantly, will have an opening when the NFL’s television deal expires after the 2033 season. However, the NFL has an opt-out clause after 2028, which could bring the NFL to ESPN much sooner.
For now, ESPN has given itself a significant advantage in the streaming wars with the NFL, which is a juggernaut.
What do you think of Disney’s deal with the NFL and the impact it will have on linear cable? Let us know in the comments.