As we continue to see streaming services pop up in an attempt to hook cord cutters and millennials, the success of Netflix has content providers trying to find ways to match it. And with ESPN attempting to curtail subscriber losses, there were reports that its owner Disney was considering purchasing Netflix which were later shot down.
Still, there are talks of the two somehow getting together and one way could be a partnership that could see a Netflix + ESPN package. And business analysts think that would be more ideal than a Disney purchase of Netflix.
While ESPN remains the most expensive non-premium pay TV channel costing cable companies about $7 per subscriber each month, Disney is looking to bring new eyeballs to the table. However, Disney CEO Robert Iger doesn’t want to unbundle ESPN from its other networks like ABC, Disney Channel, SEC Network, Longhorn Network and coming in 2018, ACC Network.
Even so, ESPN is planning an over the top channel that would include content that it normally doesn’t televise, but that probably won’t be enough of an attraction to bring mass numbers. That is unless ESPN decides that making itself a standalone channel would be worth the risk to break away from cable. And if ESPN makes the leap, what price would be charge customers? Some think that such a venture would be very expensive considering the content like Monday Night Football, NBA, MLB, college sports, soccer among others.
Disney’s stock prices has tumbled 16% from last year and that is due mostly to fewer subscribers to ESPN. At one point at a high of 101 million subscribers five years ago, it’s at 89 million now. So bundling Netflix’s movies, TV shows and documentaries with ESPN’s live sports content might be a good marriage. But the question as mentioned previously would be the price. Netflix just increased its price for its most popular subscriber package to $10/month. What would be ESPN’s price?
It’s an interesting idea whose time may have come. Nothing is concrete and this is just in the speculation phase, but if Netflix and ESPN hook up, could we see Netflix enter the live sports business to compliment ESPN and to increase its base? So far, Netflix has refused to go after sports saying rights fees would force a price hike, but if ESPN is there, perhaps it might bring some events into the fold.
There’s a lot of hurdles to clear before this becomes reality, such as Disney’s recent deal to buy into MLB’s BAMTech, this certainly makes for some good talk.
[The Wrap]
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