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ESPN Flagship

Doc 20

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Feb 28, 2002
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Reading about ESPN Flagship, which will apparently be forced upon all of us who love sports...will this be a good thing, or is it another corporate strategy to make us pay more for the pleasure of watching our favorite sports while paying for much that we are not interested in? Will I still be able to get ESPN, ESPN 2, and ESPN + without paying more for things I do not want? Or is their pricing going to make so that it is more frugal to just pay for it all, rather than piece-meal it?

3. ESPN Flagship will be an immediate hit

ESPN’s direct-to-consumer streaming service, code-named “Flagship,” will allow consumers to access the entire suite of ESPN networks without a traditional pay-TV subscription. That includes the full programming lineup of ESPN+ and what currently airs on linear ESPN. There will also be integration with ESPN Fantasy and ESPN Bet. Reports indicate a starting price of between $25 and $30 per month, and the price point is what I think will attract consumers initially. I think early subscriber numbers will exceed expectations, especially given recent big increases at YouTube TV.

The research firm MoffettNathanson, which provides trends in media, communications and technology to institutional investors, put out a note this month projecting that “after an initial investment of $75 million in FY (fiscal year) 2025 to get the service up and running (anticipating a launch at the tail end of FY 2025 in time for the start of the NFL season), we project an initial one million paid subscribers in FY 2026, driving subscription revenues of just over $200 million and ad revenues of $20 million.” I predict that number is higher by FY 2026.
 
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