ESPN wants to be the hub of all live sports streaming

DisneyESPN wants to be the hub for all live sports streaming – even the competition.

The sports network has been in talks with major sports leagues and media partners about launching a feature on ESPN.com and the free ESPN app that would connect users directly to where live sports events are being streamed, according to people familiar with the matter.

That can include national or global streaming services, for example Apple TV + and Amazon Prime Video, or regional sports services such as Sinclair’s Bally Sports + or Madison Square Garden Entertainment’s MSG+.

The exact media partner has yet to be determined, and there is no timeline for when the feature will roll out, said the people, who asked not to be named because the discussions are private. Still, ESPN has been pitching the idea to major sports leagues and media companies to gauge their enthusiasm, the people said.

While the business terms of the concept are still subject to change, ESPN has considered a model that would cut subscription revenue from users who sign up for the streaming service through ESPN’s app or website, the two people said. If customers have subscribed to the service provided, ESPN does not collect money and only provides the link as a courtesy, people familiar with the matter said.

ESPN could also alert users to games airing on linear TV, cementing its new role as a live sports TV guide, the people said.

An ESPN spokeswoman declined to comment.

Some regional sports network owners have expressed some optimism about the idea as they try to boost subscription revenue as the league questions the prospect of a larger industry business in an ecosystem dominated by streaming, the two people said. CNBC previously reported that Sinclair’s Diamond Sports Group is considering bankruptcy restructuring after defaulting on $140 million in debt. Warner Bros. Discovery has signaled the league plans to exit the RSN business entirely, according to The Wall Street Journal.

It has become increasingly difficult for consumers to choose how to find a given game as rights packages have been carved up by sports leagues looking to maximize carriage fees among streaming partners. New York Yankees games for New York area fans can be televised on linear TV on the YES Network, ESPN or The invention of Warner Bros‘s TBS, or it can be streamed on Amazon Prime Video, Apple TV+ or NBCUniversal’s Peacock.

ESPN wants to use its independent status as the “world leader in sports” to become the de facto stop for all consumers looking to watch live sports, the people said. Currently, ESPN only links users to ESPN-licensed content. That amounts to nearly 30% of all U.S. sports broadcast or televised, according to people familiar with the matter.

ESPN’s willingness to promote other streaming services represents a strategic shift in the streaming war. Disney is less focused on getting streaming subscribers — and eyeballs — at all costs. Company executives have emphasized wanting investors to prioritize revenue and profits over customer growth, a trend started by other media companies, including Netflix and Warner Bros. Discovery.

Media companies have also started trading in lockstep as streaming growth slows. It is a limited competitive pressure and promotes working together. Disney and Warner Bros. Discovery are also emphasizing licensing content to compete with streaming services to increase revenue rather than maintaining exclusive content.

Disney CEO Bob Iger announced a corporate reorganization last month that made ESPN an independent division, led by ESPN Chairman Jimmy Pitaro. The move could bring ESPN’s finances under scrutiny during the earnings call. Pitaro announced Wednesday that he was cutting management under him to reduce the number of direct reports.

When activist investor Dan Loeb last year pushed Disney to spin off or sell ESPN, Iger said there were no plans.

Disclosure: NBCUniversal Comcast is the parent company of CNBC.

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