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ESPN+ subscribers drop once more forward of UFC broadcast deal negotiations

May 8, 2024
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The UFC begins negotiations on a brand new broadcast rights deal later in 2024 however the promotion’s present companions at ESPN are persevering with to face struggles within the ever altering market of sports activities consumption.

For the second straight quarter in a row and third out of the previous 4 quarters general, ESPN+ misplaced subscribers, which is primarily the place the UFC thrives, particularly via the pay-per-view enterprise that runs on the streaming service. Subscribers dropped two-percent within the second quarter of 2024 with the whole variety of subscriptions standing at 24.8 million.

That’s roughly the identical variety of subscribers ESPN+ touted in early 2023.

ESPN+ additionally reported a $65 million working loss for the quarter.

So far as why ESPN+ subscriptions dropped, Disney pointed to the standard churn that usually occurs on the finish of a sports activities season — this time round resulting from faculty {and professional} soccer each coming to an finish till late summer time 2024. Whereas these claims might be true, ESPN+ had been steadily climbing with over 5 years of development for the streaming service.

On a happier be aware, Disney reported that ESPN skilled general rankings success within the month of April, which included the conclusion of the NCAA girls’s basketball championship. April additionally marked the best rankings ever for a UFC preliminary broadcast after UFC 300 earned document viewership.

In fact, Disney CEO Bob Iger has spoken rather a lot in recent times about plans to transition ESPN to a extra digitally pushed enterprise slightly than via linear tv, which incorporates launching a direct-to-consumer streaming platform in 2025. Disney additionally plans to launch a sports activities streaming service with Warner Bros. Discovery and FOX in late 2024.

“I see sports activities persevering with mainly to shine in a world the place there’s simply significantly extra alternative,” Iger stated throughout an earnings name with buyers on Tuesday. “The opposite factor that’s actually essential is the engagement that dwell generates. I discussed in my feedback, which we actually haven’t talked about a lot, and I suppose a whole lot of the eye has been on the [joint venture] that we introduced in addition to on flagship, which is taking ESPN direct on the finish of [2025] however on the finish of this 12 months, we’re going to place an ESPN tile on Disney+, which may have a modest quantity of programming nevertheless it’s a begin when it comes to basically conditioning the subscribers to Disney+ and Hulu that sports activities goes to be there.

“As I look forward, I feel ESPN goes to make a pivot in the direction of digital however with out abandoning linear. It should stay on linear if folks need to get ESPN and its completely different channels via a cable or a satellite tv for pc subscription, that’s tremendous or in the event that they need to pivot easily, as a result of there shall be many alternative entry factors to get the digital product to ESPN digital, they will achieve this as a part of a bundle with different sports activities companies, they will achieve this immediately from ESPN with the ESPN app or they will do it a part of a bundle with our personal companies. So I really feel very bullish about it.”

Past the UFC broadcast rights, ESPN additionally has a separate negotiation coming with the NBA, which is predicted to be a slightly costly package deal that might be unfold throughout quite a few networks.

It stays to be seen how this newest drop in subscribers might probably have an effect on the UFC when it comes time to barter a brand new broadcast rights deal however these talks are anticipated to start earlier than the top of the 12 months. The UFC’s general take care of ESPN runs via 2025.



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