Next Story
Newszop

ESPN's new streaming app is a strategic 'Trojan horse', say analysts

Send Push
A bold move with limited immediate appeal

\

On May 14, 2025, ESPN officially unveiled its long-anticipated direct-to-consumer streaming platform, simply titled "ESPN." The service, which will cost $30 per month, promises access to everything the network offers—from its traditional linear channels to exclusive digital content, all wrapped in a highly personalized user experience.

But the standalone price tag has raised eyebrows. The service only includes ESPN content, meaning fans still need separate access to games aired on other networks like Fox, CBS, NBC, or their regional sports networks, all of which come at additional cost. With comprehensive alternatives like YouTube TV offering a full lineup of sports, news, and entertainment for $83 per month, analysts question the standalone value proposition of ESPN’s new platform.

Even ESPN acknowledges the limited appeal at launch. Internally, executives are tempering expectations around subscriber growth. So why launch a high-priced standalone service with two years of effort poured into it when uptake is expected to be slow?

LightShed analysts: It’s about direct viewer access

According to LightShed Partners, the move isn’t just about subscriptions—it’s a long-term strategy to shift viewer behavior. As they explained:

“We believe the goal of launching the ESPN app direct-to-consumer is to get existing MVPD/vMVPD subscribers who have access to ESPN (over 65 million subscribers, which implies well over 130 million potential users/viewers) to watch via the ESPN app instead of watching via their MVPD/vMVPD.

“If ESPN can drive MVPD and vMVPD subscribers to use the ESPN app instead of watching on Comcast, DirecTV, or YouTube TV, they will finally have a direct relationship with their viewers. This would allow them to understand what viewers watch, target advertising in a far more compelling way and try to engage viewers beyond live games (whether that be highlights, merchandise, sports betting, fantasy, etc).”

In essence, ESPN’s real play is to draw users onto its app, even if they already have access through traditional providers. By doing so, the network gains valuable first-party data, enabling better targeted advertising and deeper engagement beyond just live broadcasts.

A personal experience powered by AI and fan data

To support this shift, ESPN is leaning heavily into personalization. Executives have emphasized features like:

AI-generated versions of SportsCenter , customized with highlights based on users’ favorite (or rival) teams

Integration with fantasy sports platforms and sports betting interests

Deep customization tailored to the individual viewer

These elements are designed not just to make the app attractive to potential $30/month subscribers, but to win over existing ESPN viewers who still watch the channel through traditional TV. ESPN’s goal is to convince these viewers to authenticate via the app, so they can be served custom content and ads, and remain engaged longer than they would while casually flipping channels.

The long game: Engagement first, subscriptions later

While ESPN would eventually like to see millions of users paying $30/month, that isn’t the immediate target. The focus right now is on building an experience compelling enough to keep sports fans engaged—even if they aren’t paying for it directly.

“Success in the early stages won’t be measured in subscribers,” the article notes. “It’ll be measured by how engaging ESPN’s new features really are.”

In other words, the app is less about the $30 monthly fee—for now—and more about capturing viewer behavior, building direct relationships, and preparing for a future where ESPN might bypass cable entirely.

with Inputs from: awfulanouncing.com
Loving Newspoint? Download the app now