• by Wayne Friedman , Staff Writer, Yesterday

Hand it to Walt Disney and ESPN for moving closer to a major programming linear TV/streaming video supplier -- the NFL -- striking an equity agreement with the league -- according to a report in The Athletic, a New York Times digital publication.

The league would get a 10% minority equity ownership in ESPN. The big sports TV network would take rights to the league’s NFL Network, a cable TV network, the NFL’s “Red Zone” programming -- as well as seven more regular-season games. That equity stake would be reportedly valued in the "billions" of dollars.

Can we call this future-proofing for the streaming ecosystem?

This was expected -- to an extent. Bob Iger, chief executive officer of Walt Disney, has talked about possible partnerships with major media entities for a while, not just alluding to the NFL, but with the NHL, NBA, and Major League Baseball.

Believe that, if confirmed, ESPN would now be jumping ahead of the line when it comes to potential linear TV networks looking to make bigger transitions and digital connections -- all in the wake of cord-cutting, which results in steady viewer declines.

It also comes almost perfectly timed with the launch of ESPN's new, full-fledged streaming service for this fall. That’s the real future for Walt Disney and ESPN -- not that ESPN as a linear cable TV network is going away just yet.

One main challenge for struggling cable TV networks is how to take care of all sides of consumers -- young and old, hardcore sports-viewing or non-sports programming viewers -- as well as those sticking around with linear TV and those who are headed totally to streaming.

In exchange for giving up 10% equity of ESPN, the sports TV network is expected to make a major production investment to improve NFL Network programming, according to the publication.

ESPN isn’t like other cable TV networks. Although linear TV is sinking, it sits at the top of business, commanding high ad pricing and top drawer distribution fees from legacy TV providers.

It comes at the same time that major legacy TV-network media companies are in the process of spinning off cable TV networks that have been depleted when it comes to viewership and advertising dollars.

That said, many analysts have also called for ESPN to possibly be spun off from Disney.

The difference is that live sports -- and to a lesser extent, news TV programming -- still thrive. The latter is seeing rising ad revenue for the likes of Fox News Channel, for example.

For ESPN to hang its hat on a major live TV/video programming provider sets the bar fairly high.

Can cable TV networks take some lessons in finding a way to do something similar?