Commentary

ESPN's Pitaro: More Bundling To Come - Consumer Cost Headaches Ahead?

Brace yourself: Much more streaming bundling is coming to a TV set -- and other devices -- near you.

At least that’s what ESPN Chairman Jimmy Pitaro says when it comes to the new ESPN direct-to-consumer (D2C) service -- aligned for bundling inside and outside Walt Disney.

We already know that at launch today, the ESPN app will be bundled with Disney+ and Hulu, priced at an introductory $$29.99 a month.

Content from the existing ESPN+ -- the limited sports program streamer service, which was included in the original Disney bundle (Disney+, Hulu, ESPN+) -- is being transitioned into the new ESPN streamer.

At the same time, Disney announced that you could also buy the new ESPN streamer, at a stand-alone app price of $29.99/month.

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Why did Disney do this? Perhaps to set the bar high enough for those truly, high-interest, intense sports fans -- just a very small percentage of overall more casual TV viewers.

It establishes for Disney a high range level, which then can set prices for all types of TV/streaming consumers -- bundlers, streaming-only, Disney-exclusive bundling, as well as transitioning hybrid legacy/streaming consumers.

Current consumer TV advertising for Disney bundles already has many variations. For example, there is one packaging Disney+ and Hulu with Warner Bros. Discovery’s HBO Max. This package has two price points -- one with ads at $16.99, and one without ads for $29.99/month. (Does that no-ads price tag sound familiar?)

Now we go one better. Disney recently struck an agreement with Fox to package the new ESPN with the new Fox One streamer -- available starting October 2 -- for $39.99/month.

Maybe this is all to get consumers familiar with what is to come in the bundle world.

This is one that assumes where an eventual streaming-exclusive marketplace may be going, where media companies believe consumers will go back to paying an overall $80 to $110 per month for whatever their total TV/streaming monthly cost will be -- streaming-exclusive, legacy/streaming hybrid or other variations.

Also consider this: Consumers will need to look closely at direct purchases from the media companies themselves, as well as bundle deals from legacy pay TV providers (DirecTV, Comcast, Charter) or new streaming distributors (Roku, Amazon Fire TV).

Consumer entertainment cost spreadsheets will need to work overtime.

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