During this week, the initiation of the new direct-to-consumer service by ESPN is set for this autumn at a price of $29.99 per month, aligning with the pre-announcement cost estimates.
As part of the launch, ESPN revealed that the upcoming app will feature improved connections to betting activities. This rollout is seen as one of the most significant changes in the sports media industry since the Covid pandemic. Pitaro has even referred to it as potentially the “most substantial transition” in the history of the company.
The release will be crucial for Penn Entertainment, which holds the exclusive rights to the ESPN BET trademark through a multi-year contract. In the previous quarterly earnings call, Penn’s chief technical officer, Aaron LaBerge, expressed high enthusiasm about the launch, calling it a “pioneering integration”.
Further watch-and-bet integrations
Last year, ESPN introduced a feature allowing users to seamlessly link their ESPN BET app with the main platform with a simple tap.
Following the introduction of account linking, Penn observed a rise in user engagement on ESPN BET, increased betting frequency, and a greater mix of parlays, as noted by Barclays analyst Brandt Montour in a research report. LaBerge is optimistic about the watch-and-bet functions that will be accessible through the app, describing them as “top-notch”.
During an ESPN event, Pitaro discussed the potential development of a personalized version of the network’s “SportsCenter” in the future. Under this initiative, viewers might have the ability to select segments based on their daily preferences.
When asked about the potential involvement of sports betting in the prototype, ESPN BET VP Mike Morrison mentioned that a personalized betting experience might face challenges due to existing rights agreements.
Nonetheless, Morrison finds the idea of a streaming game pass as an incentive for bettors intriguing.
Enhancing market share?
Reflecting LaBerge’s sentiments, Penn Entertainment CEO Jay Snowden highlighted during the recent company call that the planned betting enhancements for the fall will introduce a level of “personalization and distinctiveness” not present today.
This is one of the reasons Snowden anticipates that ESPN BET will capture a larger portion of the nation’s online sports betting market by the end of the year. Penn conducted the call during a challenging period, as ESPN BET trails industry leaders FanDuel and DraftKings significantly.
ESPN mentioned in a press release that more features will be introduced at a later date. Regarding the betting enhancements, there are indications that ESPN is refining these upgrades, with further updates anticipated soon, according to a knowledgeable source.
Two summers ago, Penn entered a $1.5 billion, ten-year agreement with the broadcast company to leverage ESPN’s brand for their betting platform. The agreement includes a provision allowing either party to exit the partnership after three years.
