The Powers That Be: Daily Disney v. YouTube & MLB’s Hard Reset
May 27, 2025
John Ourand, sports media expert from Puck and author of The Varsity newsletter, joins Julia Alexander to explore the repercussions of Disney's lawsuit against YouTube following the departure of top ESPN executive Justin Connolly. They discuss the looming challenges for Major League Baseball as its $550 million ESPN deal nears its end. The conversation reveals wider issues affecting all sports leagues in the transforming media landscape, addressing viewer engagement, negotiation power, and the struggles in securing lucrative broadcasting partnerships.
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Justin Connolly's Career Journey
- Justin Connolly spent over 25 years at Disney and ESPN, deeply involved in negotiating distribution deals.
- He was a top contender for ESPN CEO before moving to YouTube to lead their sports media division, sparking a lawsuit.
YouTube's Sports Strategy Uncertain
- YouTube is aggressively pursuing a bigger role in sports, signaling streaming's growing importance in sports media.
- Their acquisition of Connolly is a strategic move, but they're still testing how much sports rights add value to their platform.
Changing Leverage in Sports Rights
- ESPN and Disney hold massive leverage in sports rights due to historical cable dominance, but streaming and cord-cutting are shifting power dynamics.
- Sports rights fees may decline as streaming platforms don't rely on sports to drive subscriptions like traditional cable did.