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Game Changer: FuboTV Gets ESPN

Game Changer: FuboTV Gets ESPN

June 23, 2020

Live TV streaming service Philo hit an incredible milestone this week after the company announced its first-ever premium movie channel offer. Epix and Starz are now available on Philo for an additional cost. While perhaps not the most exciting for all subscribers, it may be an indication that Philo is ready to branch out into even more add-on package options.This week, we take a look at Philo's new offering, as well as highlight several other news and TV broadcast dates you may want to check out.

Streamer's Spotlight: FuboTV Gets ESPN, Changes Landscape for Sports Cord-Cutting

There's a chance you've heard of FuboTV. There's even a chance you've given it a try with a free trial. You may be even among the company's tens of thousands of subscribers. And if you are, as a sports fan, you'll note that the biggest thorn in the company's side has long been its lack of ESPN.

The sports-centric streaming service is one of the oldest in the cord-cutting marketplace, having launched in 2015. All of that time, we've had to describe it with a rather definitive "it's great, but..." due to the lack of ESPN in its rather hefty channel line-up. As of 2020, however, FuboTV will

finally get ESPN channels

added to its content selection. And that, my friends, is a game-changer for sports cord-cutting.

Why is FuboTV Getting ESPN So Critical?

On the surface, FuboTV getting that coveted ESPN contract agreement is just business. After all, most other multi-channel internet streaming services already have ESPN as part of one or more of their packages. YouTube TV, Hulu + Live TV, Sling TV, Vidgo; they've all had ESPN practically since they launched.

Yet none of those other services have as large a sports package as FuboTV. Depending on where you live, there are around 100 channels available through the FuboTV Standard streaming package (the total number varies depending on where you live). Of those, just around 40-50 will be sports networks or channels that regularly broadcast sports. That's half of the service's package that's dedicated to sports channels.

This is a critical point that works in FuboTV's favor when it comes to sports fans. People who tend to stick with cable TV primarily do so because of sports. A

2017 PwC survey

found that 82% of traditional pay-tv subscribers would either reduce their package or cut cable altogether if they no longer needed it for sports. And 91% of sports fans subscribe to pay-TV of any kind to get access to live games.

Combine that with the fact that ESPN is the

most-watched sports network

by a wide margin, and you can easily come to one conclusion: Sports fans will cut the cord if they can get their most-watched channels in one place for less money. And since FuboTV offers the largest number of sports networks, which will also now include the sports network that dominates the market, that places it in a much stronger position to increase its cord-cutting market share.

The Deal with Disney is Expansive

When cord-cutting services like FuboTV ink a deal with Disney, that deal includes more than just one channel. Such is the case with the FuboTV + Disney contract. Alongside ESPN, ESPN2 and ESPN3, FuboTV's customers will also get 11 additional networks in the Standard package, and even more in the more exclusive channel packages (including out-of-network SEC games).

Possible Drawback? Increased Base Price

ESPN and other Disney-owned networks don't come cheap. ESPN charges

$7.21 per subscriber

, according to a Business Insider report. And if FuboTV is getting a plethora of Disney-owned channels alongside ESPN, and you include the mark-up FuboTV will have to add on to ensure it makes at least some profit from the endeavor, you're looking at a potential $10-$15 per month price increase for the base package.

FuboTV could mute that price increase by removing some of its least-watched channels from the Standard package. That's unlikely, however. Most channels are added in bulk, so the company would have to rework existing contracts in ways that are unfavorable to the rightsholders.

A price increase is the most likely outcome if FuboTV is going to continue to earn a profit on the packages. The only question is when that increase will happen.

Learn more about FuboTV here

We originally rated FuboTV a 7.5/10. With the addition of ESPN (the lack of which lowered its score), we'll likely bump that score up to at least an 8.5.