ESPN is moving closer toward offering its sports-TV channel as a streaming service.
According to a report in the Wall Street Journal, the Bristol-based company is “laying the groundwork to sell its channel directly to cable cord-cutters as a subscription-streaming service in coming years.”
The newspaper cited unnamed people familiar with the matter.
The Disney-owned company’s shift to a standalone streaming service is being discussed internally under the code name “Flagship,” the WSJ said.
ESPN would continue to offer its TV channel after launching a streaming option, according to the WSJ.
The WSJ said that ESPN is working to “secure flexibility” in its deals with cable providers that would allow it to offer the channel directly to consumers. The company is having similar discussions with pro sports leagues and has reached agreements with at least two major leagues, the newspaper reported.
ESPN began streaming live golf, certain Major League Baseball and professional hockey games, along with other programming, on ESPN+ in 2018. It has 25.3 million subscribers, but does not offer ESPN’s TV channel.
The WSJ said media companies’ shift to streaming is a “tricky” industry trend because the economics of the streaming world are less certain than the lucrative TV business. That’s because rather than paying for cable TV bundles through long-term contracts, consumers can subscribe to streaming services they choose.
The news comes at a time that ESPN is undergoing cost-cutting measures, as part of a restructuring by its corporate owner. Walt Disney Co. announced in February that it will eliminate 7,000 jobs through layoffs and attrition.Â
ESPN began laying off employees in April.
