ESPN eyes more social content for Unlimited experience

ESPN eyes more social content for Unlimited experience. Add Axios as your preferred source to.

Key points

• Over 5 million fans have applied ESPN's "multiview" feature to watch multiple events at once over the past year, resulting in more than 12, 000 unique event viewing combinations.
• More than 24 million fans applied ESPN's vertical-video product called Verts over the past year, generating more than 1.5 billion minutes of time spent in the ESPN app.
• As part of those deals, Disney agreed to create ESPN Unlimited free to YouTube TV and Comcast Xfinity subscribers.
• Between the lines: Striking distribution deals has been critical to ESPN Unlimited's success.
• The network introduced Unlimited last August with most, but not all major pay-TV distributors.

Notably, the major picture: Unlimited's launch last year – as chairman Jimmy Pitaro described in a note to employees Thursday – was "one of the biggest business transitions" in ESPN's history. That transition has additionally been critical for parent business Disney.

Around 80% of ESPN Unlimited plan subscribers access the service through the Disney+, Hulu and ESPN bundle, a spokesperson remarked, a testament to ESPN Unlimited's unique role in powering a broader and more lucrative flywheel of fandom for Disney.

Catch up quick: ESPN introduced a direct-to-consumer service called ESPN+ in 2018, but at the time, bringing live cable programming to streaming services was taboo and unappealing to telecom providers.

Today, ESPN and other networks have managed to broker deals with pay-TV distributors that they believe benefit everyone. Networks can create their own direct-to-consumer relationships without cannibalizing pay-TV subscriptions. Consumers have more choice.

"It allows us to think about the space holistically" Marshall remarked. "We're agnostic to how fans end up subscribing to ESPN."

Between the lines: Striking distribution deals has been critical to ESPN Unlimited's success. Pitaro informed employees maximizing access has been a "vital priority."

For context, the network introduced Unlimited last August with most, but not all major pay-TV distributors. It struck deals with Comcast and YouTube TV a few months afterwards.

As part of those deals, Disney agreed to create ESPN Unlimited free to YouTube TV and Comcast Xfinity subscribers. It additionally struck a landmark agreement with rival Fox to create ESPN Unlimited available via a cheaper value bundle with Fox One, Fox Corp.'s live streaming content offering.

Ahead of Unlimited's launch, ESPN reached a critical accord with NFL Network, gaining access to exclusive games and content for subscribers in exchange for a 10% stake in the business.

Zoom out: While subscriber gains and contributions to the broader Disney bundle are significant, engagement is additionally critical to ESPN's ability to retain subscribers and sell advertising.

"As we think about the next phase of sports media, it's not just about putting more games in more places, it's about enhancing interactivity and personalization, " Marshall remarked.

By the numbers: Executives point to early data as evidence that products designed to personalize the ESPN experience are attracting and retaining subscribers.

Fans using ESPN's interactive TV features during live games watch twice as long as those who don't, according to data provided to Axios.

More than 24 million fans applied ESPN's vertical-video product called Verts over the past year, generating more than 1.5 billion minutes of time spent in the ESPN app. Verts account for most of user-initiated short-form video starts. ESPN has generated more than 40, 000 personalized "SportsCenter For You" segments.

What's next: Looking ahead, Marshall's team is exploring ways to ensure ESPN is the digital home for sports fandom, not just another place to stream games.

That means bringing more ESPN content created elsewhere, like short-form video, original reporting and social media content, into the app.

He additionally suggested the network is eyeing more ways to work with content creators to reach fans. He pointed to a new accord struck between Disney and TikTok as an opportunity to lean into short-form video content.

For now, ESPN eyes more social content for Unlimited experience remains the part of the story worth watching, and further updates are likely as more details are confirmed.