Commentary

In A More Complex Streaming World, ESPN's Isn't Helping

Is the whole streaming and linear thing when it comes to a consumer perspective getting more confusing -- from a pricing point of view? ESPN may not be making things easier.

If you are still a long-time pay TV customer -- cable, satellite, telco, virtual -- you also get some streaming platforms for free.

If you are paying for a Warner Bros.'s cable TV network HBO (as well as getting other WBD channels, like TNT, TBS, CNN), you get free streamer HBO Max (its "Standard" plan at $16.99 monthly price) that includes plenty of content from all those linear TV networks.

All this helps existing pay TV distributors -- such as Comcast Corp., Charter Communications, DirecTV and others -- maintain their business. So if you are an "authenticated" customer of those operators, you’re in.

ESPN will do the same with its big direct to consumer ESPN streaming platform, starting Aug. 21, when it is launched.

But the problem comes with usual issues involving the timing of renewals of those carriage deals. Good news: operators such as Charter, DirecTV, Hulu + Live TV, Fubo, Verizon Fios and some smaller pay TV operators are ready to go at launch.

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But a bunch of other big distributors aren’t -- due to typical wide-ranging timing of renewals of those cable TV network distribution contracts. On the outs for now: Comcast Xfinity, YouTube TV, Dish satellite TV/Sling TV and Cox cable subscribers, according to CNBC.

That means should customers want the ESPN streaming service, they would need to pay an additional $29.99.

Considering the already high price of the traditional pay TV bundle, around $80 to $100 or more a month, Disney and ESPN know -- factoring all of this -- that initial growth for its big streaming service will be slow at first.

Figure longer-term -- more than a few years out -- that $29.99 price tag or higher will mean more impact consumers. So cord-cutters, full-on streaming-only consumers would be the major targeted subscribers.

To combat some of this -- to drive business at launch -- Disney is offering other options, making consumers perhaps work harder now. Factor in some more complex streaming math: if you are, say, an existing or soon to be cord-cutter, you can get the new streaming ESPN with Disney+ and Hulu thrown in for free for $29.99/month  -- but only for a limited time, via initial launch promotional period.

Whew! Got it? Now get to work on your calculator.

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