ESPN In the Endzone

ESPN shook up the sports media world this week with a blockbuster agreement to take control of NFL Network, RedZone, and the league’s fantasy football platform in exchange for a 10% equity stake from the NFL. The deal will integrate the league’s media assets into ESPN’s forthcoming $29.99-per-month direct-to-consumer service, set to launch August 21.

To unpack what this means for ESPN’s streaming strategy and how the company is thinking about everything from audience growth to editorial independence, I spoke with Rosalyn Durant, ESPN’s executive vice president of programming & acquisitions. In our conversation, Durant discussed the target audience for the new service, how the NFL assets fit into ESPN’s broader plans, the role of WWE in its streaming lineup, and more.

Below is our Q&A, lightly edited for style.

Let's first talk about ESPN's flagship streamer, which finally has a price and launch date. Who do you see as the target demo for this product? And do you at all worry that it will cannibalize your existing linear business?

Our mission is to serve sports fans. We want all fans to enjoy ESPN. We’re rather agnostic about how they do that—whether through traditional bundles or direct from us via our new offering. Our DTC offering is specifically marketed to those “on the sidelines,” meaning potential fans who aren’t already committed to ESPN via cable, satellite or streaming. We are providing them an additional option.

We see this as complementary to our linear business. Our Pay TV partners remain incredibly important to us. This launch is about expanding our reach and meeting fans where they are. Many fans will continue to enjoy ESPN as part of their cable bundle—which is just fine, while others will choose to subscribe directly. We are providing options to ensure we are well-positioned to serve sports fans everywhere, however they choose to watch.

ESPN announced a major deal this week with the NFL. How do you believe this consolidation might reshape the sports broadcasting landscape?

Fans are central to this relationship and, as a result of the various agreements announced with the NFL, they now have more options than ever before to consume NFL content. Each agreement was guided by the same principles: to provide more content from the most popular league in America and make it easy for fans to engage in new and exciting ways. These agreements will also add value to our upcoming Direct-to-Consumer offering—more premium content all in one place.

Let's dive into this a little more. How significant is ESPN gaining control over NFL Network, RedZone, and Fantasy in advancing its streaming strategy?

From live games and fantasy to highlights and betting, fans will discover an extensive array of football content fully integrated into ESPN’s forthcoming Direct-to-Consumer service. ESPN’s platforms will feature more NFL games than ever before, all in one place. The NFL Network coverage that fans know and appreciate will continue but be enhanced by our unparalleled production and innovation. ESPN Fantasy Football will serve as the NFL’s official season-long fantasy game, as NFL Fantasy merges into our platform to create a best-in-class experience. Additionally, we’ll make it easy for fans to bundle NFL+ Premium with ESPN (DTC) to access RedZone and other exceptional NFL content. It is all in service of the fan.

I'm sure you've thought about this: Given ESPN is a news organization, how will you ensure it maintains journalistic objectivity when its primary content partner holds equity? What guardrails will be in place to ensure editorial independence?

We do not need guardrails. We and NFL are aligned that nothing is changing in terms of how we cover the league. The NFL has never asked us to change our approach in terms of how we cover them, nor would we. A huge part of our DNA is covering sports objectively and fairly. And it’s not just the NFL – all of our league partners know that that is not going to change.

ESPN also struck a deal to exclusively carry WWE's programming. The WWE deal is a little more unusual in that it blends sports and scripted entertainment—and it’s one of the first major properties ESPN is using to anchor its standalone streaming service. How are you thinking about that?

This package of exclusive rights to the high-profile WWE Premium Live Events will bolster our direct-to-consumer offering and help drive our streaming future. WWE has a passionate, devoted fanbase that is young and diverse. This is attractive to us as we continue to prioritize audience expansion and storytelling. There's great alignment between our two organizations.

Back to the NFL deal: Do you force any major hurdles obtaining regulatory approval? It seems hard to imagine anything would be entirely smooth sailing in the current environment.

We’re really excited about this deal and think it’s good for consumers—and I know we are looking forward to engaging with policymakers about why we think this deal is pro-consumer and pro-competition.

In this week’s episode of Power Lines: We take you inside the room at Skydance’s first press conference as the new owners of Paramount—breaking down what David Ellison and his team said (and didn’t say) about Donald Trump, “60 Minutes,” Jon Stewart, “South Park,” CBS News, and more. We also detailed a few off-stage moments that we shared with the new Paramount leadership team. Plus, Sean Hannity lashes out at Trump critics in a tirade seemingly aimed at the Candace Owens and Joe Rogans of the world.

You can watch on YouTube—or listen on Apple Podcasts, Spotify, or wherever you get your podcasts.

[Data via Box Office Mojo]