The Walt Disney Co. (DIS) -) and ESPN have publicly voiced that they are looking to pivot to direct-to-consumer products in this evolving television landscape, but ESPN Chairman Jimmy Pitaro just made sure to make an important point about the traditional TV model.
Speaking at CNBC and Boardroom's Game Plan 2023, Pitaro made sure to say that ESPN would not be ditching the traditional TV model once it does commit more of its live sports content on direct-to-consumer platforms.
“The [traditional TV] model has been very good to Disney,” Pitaro said.
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ESPN has lost about a quarter of its subscribers -- amounting to about 25 million -- over the last decade largely due to consumer cord-cutting. While Pitaro reiterated that ESPN will surely make the streaming move, it’s clear that the traditional TV model still has a large enough base of millions of subscribers to drive revenue to ESPN.
Pitaro also commented on the CNBC report that ESPN is talking to professional sports leagues for an opportunity to acquire a stake in the sports network. Disney CEO Bob Iger mentioned in a public interview with CNBC in mid July that they are looking for “strategic partnerships” for ESPN to boost its content and distribution.
“I can’t comment on who we’re talking to,” Pitaro said. “I will emphasize the fact that we believe that there are parties out there that can help us on the content side, so you can draw whatever conclusions you want from that.”
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Pitaro would not comment on who ESPN is speaking to, but the NBA, NFL, and MLB were all floated as potential partners for the league in the CNBC report. However, giving equity stake to leagues could bring up conflicts of interest with other broadcasting partners, let alone the integrity of the journalists who work at ESPN.
