ESPN is thinking big for its “Flagship” application.
Almost every time an ESPN executive has publicly discussed the project since news of the direct-to-consumer service was first announced in mid-2023, he has sounded like someone who just buy a custom home.
The company clearly envisions “Flagship” as much more than just a digital version of the ESPN network. From customizable Sports center happy to license its competitors’ events and absorb local and regional rights, the revamped ESPN offering will be vast.
The latest dreams came from ESPN content president Burke Magnus on The Sports Media Podcastwhere he addressed recent rumors that ESPN might license Fox Sports or even TNT Sports content for “Flagship.”
Although Magnus hasn’t confirmed a partnership with a specific competitor, he essentially envisioned “Flagship” as a Netflix for sports.
“We are going to build what we believe will be the ultimate digital sports destination for sports fans,” Magnus said.
In the aftermath of Venu’s collapsethe collaboration that ESPN has concluded with Fox and TNT, ESPN has moved towards the offer Sports-focused “skinny” wiring harnesses thanks to agreements with Charter, Fubo, and DirecTV. These offers largely allow cable operators to also offer ESPN+ and Disney+ to their customers. This limits the revenue that ESPN and Disney can generate from these deals, but it also allows them to focus all of their creative energy on “Flagship.”
So what could a sports Netflix look like with the coffers of ESPN? The company is starting out with a huge advantage, having renewed deals with the NFL, NBA, College Football Playoff and NHL in recent years, with extensions expected this year for MLB and UFC. Content partnerships with Pat McAfee and Peyton Manning show how ESPN is building a new type of brand in the digital age.
Beyond that, Venu has abandoned the play that ESPN wants to be a clearinghouse for sports content. Unlike cable, where rival networks compete for audiences and ad sales, streaming has long been a place for overlapping licensing. This is changing as companies move away from experimentation to become profitable. ESPN has the advantage of having deep pockets and the most live sports.
So while time will tell whether ESPN ends up with the World Series or Mountain West football on “Flagship” before more mergers and acquisitions engulf rival sports networks, ESPN also sees opportunity in rights local. The company began deploying a “discoverability» on its application last March. Fans who click through to the ESPN app now see links to, say, NESN Boston Red Sox broadcasts or Monumental Sports Washington Wizards broadcasts.
When asked where ESPN might look for new, exclusive content to bring under the “flagship” umbrella, Magnus pointed to local markets.
“We could definitely do it with regional content from the leagues or with things like MLB At Bat or NBA League Pass, that sort of thing,” he said.
Services like Amazon Prime Video and YouTube TV already offer integrated subscriptions to separate league-produced services, like At Bat and League Pass. Anyone with an Apple Watch or Apple TV has seen score notifications pop up. If you click, you are taken to the appropriate app to watch the match. With its hardware and operating interface, Roku is called the “introduction to all television”, a not-so-subtle allusion that the winner of the sports streaming race will be the service that builds audience loyalty and becomes a must-have.
Add to that the fact that Disney CEO Bob Iger has teased “Flagship” will feature customizable AI-generated elements Sports center based on a user’s fan allegiances and the network is already cobbling together paid exclusives from top talent like the ManningCast And Field Pass with The Pat McAfee Showand an economic model is emerging.
ESPN wants sports fans to see “Flagship” as the home for any sport, any time. He wants the app to have so much content he loves that he can’t live without it.
The world leader has the resources and the brand to do so, but how he turns his imagination into reality will determine whether he succeeds.