ESPN's New Monthly Streaming Service Priced at $29.99: Who Does It Cater To? As Per Clay Travis

In the heyday of cable television, ESPN could be found in over 100 million homes. However, the landscape has drastically changed, and the sports giant has lost 40 percent of its subscribers since then.

As the era of streaming services takes over, ESPN finds itself in a competitive market. Major players like Fubo Sports (launching in September 2025), Fox Corp with Fox One service, and other sports-focused platforms pose a significant challenge. Disney, ESPN's parent company, is also entering the fray with a standalone ESPN streaming service as part of its broader strategy to compete in direct-to-consumer sports streaming.

In an attempt to adapt, ESPN launched ESPN+ in 2018 for $29.99 a month. However, a poll revealed that 96 percent of respondents would not pay this amount for ESPN's streaming service.

The target audience for ESPN+ are cord nevers (those who have never had a cable or satellite subscription) and cord cutters (those who have cut the cord and no longer have cable or satellite subscriptions). Yet, the business of cable sports on TV has collapsed in a significant way, and the question remains whether streaming can save ESPN's business.

ESPN's business model remains tethered to the cable and satellite bundle. The company pays a hefty sum for sports rights, including $2.7 billion a year for Monday Night Football, around $2 billion a year for the NBA, and approximately $1.6 billion a year for the SEC and the college football playoff rights. Interestingly, ESPN paid less to buy the NFL Network completely ($2.5 billion) than it does to rent Monday Night Football games from the NFL every year.

The collapse of the cable and satellite bundle, currently with 60 million subscribers, is a big question in media. A bundle where fans could watch everything in one place easily would be beneficial for sports fans, but such a bundle was available way back in 2000 (cable).

Disney can no longer rely on ESPN to fuel its profits. The company now makes most of its money from amusement parks. The future of ESPN's sports business is uncertain, with the company essentially renting three sports from the leagues: Monday Night Football from the NFL, one-third of the NBA, and the entire sports programming of the Southeastern Conference.

In an industry where Netflix, Apple, and Amazon dominate the streaming market, ESPN finds itself in a unique position. It competes with these giants on streaming and traditional broadcasters like Fox, NBC, and CBS on television. However, unlike its competitors, ESPN has yet to fully transition from cable to streaming.

The NFL Network deal, from one perspective, looks smart for ESPN and dumb for the NFL because it handcuffed the league and guaranteed it will always have games to air. Yet, the question remains whether ESPN's streaming service can attract enough subscribers to make it a viable business.

As the sports world evolves, it remains to be seen how ESPN will navigate this challenging landscape. One thing is certain: the company's future success depends on its ability to adapt to the changing times.