ESPN's Direct-to-Consumer Strategy

The media industry has been waiting for ESPN to cut the cord for a decade. Now it’s finally happening: This week the sports TV giant will let you start streaming — without a cable TV subscription — for $30 a month.

Why now? ESPN boss Jimmy Pitaro is quite frank about it: Along with his boss — Disney CEO Bob Iger — he wanted to make as much money from the cable TV business as he could before it dwindled away. And even now, Pitaro says he hopes the new service brings in customers who don’t have cable — as opposed to getting ones who do still pay for cable to trade down.

That illustrates the issue facing all of the big TV players these days: They know the future is a digital one, where they’ll have to work much harder to win and keep customers. So they’re hanging on to the old TV model as long as they can. At the same time they’re trying to build a profitable streaming future. That tension is the main thrust of this conversation I had with Pitaro this week in Disney’s new Manhattan headquarters. We also had time to get into his recent deal with the NFL, his ongoing commitment to sports betting — and whether ESPN is still committed to diversity in 2025.

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