The Walt Disney Company's (NYSE:DIS) ESPN has put a flag in the ground as it seeks to strengthen its position as the leading sports streaming platform.
The cable-TV-come-streaming-app company is reportedly set to launch a new online directory which will consolidate access to streams of top sporting events, including those being broadcast by rival platforms.
If confirmed, it will be the latest move by streaming platforms which remain in the early days of developing and monetising online broadcast of sport. Illegal copyright-infringing streaming services have, however, become somewhat commonplace in recent years.
The proposed ESPN service could potentially help legitimate rights-holders reach digital audiences.
Discussions have been taking place around the new feature for its app and website which would offer viewers a central list of websites to watch games, according to a report by CNBC, including from other providers such as Amazon.com Inc (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL).
ESPN, which was previously rumoured to be for sale, is set to make up one of Disney’s three core segments following a reshuffle, chief executive Bob Igor said last month, suggesting the company had to “figure out how to monetise it”.
Aside from its own marketing, the new feature could see ESPN take a cut of the subscription charges from users referred to other platforms if referred users subscribe, sources familiar with the matter explained to CNBC.
ESPN has reportedly approached major sports leagues and broadcasters with the proposal, though potential timelines for the service have yet to be announced.
A central directory of websites which legally stream sports is yet to be introduced by a mainstream provider, often leading to viewers watching matches on pirate services.
As a result, rights holders that stream sports events lose out on an estimated US$28.3bn a year, according to data from researcher Ampere Analysis.
Significantly, market research claims as viewers are often attracted by the convenience of illegal broadcasts. Ampere found that three-quarters of the 6,000 fans it surveyed would switch to legitimate sites if the option was available, and some 52% of users are already paying for the illegal streamers.
Promoting rival sites would also mark the company’s shift in focussing on revenue generation rather than the user-metric arms race seen so far in the so-called streaming war, which is a strategy hinted at recently as Disney noted its 2.4mln reduction in Disney+ subscribers in the first quarter.
Disney is meanwhile also in the process of restructuring and cutting 7,000 jobs with a view to saving US$5.5bn a year, gearing up to be better positioned to face future economic challenges.