Disney has reached a major deal with the National Football League (NFL), where Disney’s ESPN will acquire NFL Network and RedZone channels and other media assets. As part of the exchange, NFL will obtain a 10% stake in ESPN.
The exact financial details of the deal have not been disclosed, but analysts estimate the value of the NFL’s stake to be between $2 billion to $3 billion. This transaction, which is subject to regulatory approval, is seen as a significant step in reshaping the landscape of sports media.
Under the agreement, ESPN will gain control of the television and streaming rights of NFL Network and acquire the distribution rights of NFL Fantasy and RedZone channels. However, the digital rights of RedZone and assets like NFL Films will still be retained by the league.
Disney CEO Robert Iger stated that this deal will “increase consumer choices and provide audiences with greater convenience and a higher quality NFL broadcast experience.”
This deal comes at a time when ESPN is promoting its direct streaming services, as the company is facing challenges with subscriber losses and cord-cutting trends. The number of ESPN subscribers has decreased from its peak of 100 million to the current 65 million.
“Cord-cutting” refers to the trend where consumers gradually cancel cable TV subscriptions and shift towards digital streaming services, posing significant operational pressures on traditional TV networks. The number of ESPN+ subscribers has also stagnated at 24 million.
For the NFL, becoming a shareholder in ESPN will shift the league from independently operating media assets to sharing growth benefits with media partners.
Sports events remain crucial content to attract a large audience in real-time, making them essential for broadcast TV networks and streaming platforms. However, viewers’ viewing habits are changing, with more fans watching games on multiple screens or consuming short video highlights on social media. Since the legalization of sports betting in the US in 2018, an increasing number of people have been placing bets on their phones while watching games.
In recent years, in addition to partnering with traditional media outlets like Disney and Fox, the NFL has also actively collaborated with tech platforms such as Netflix and Amazon for broadcasting games, intensifying market competition. Against this backdrop, ESPN aims to integrate RedZone into a new streaming application to strengthen its content advantage and user experience.
For Disney, this is a critical step in reshaping ESPN and facing the challenges of a new era. For the NFL, becoming a shareholder in ESPN deepens its cooperation with one of its most important media partners while reducing the burden of operating media assets independently.