ESPN plans enhanced betting tie-ins for streaming service launch
As ESPN prepares to launch its new streaming service this fall, the company is set to incorporate advanced sports betting features, though specific details remain under wraps.
In a recent announcement, ESPN Chairman Jimmy Pitaro revealed that the direct-to-consumer (DTC) service will debut at a competitive price of $29.99 per month, aligning closely with earlier projections.
This initiative marks a pivotal shift in the sports media ecosystem following the COVID-19 pandemic, with Pitaro describing it as potentially the “largest transition” in the company’s history.
The launch holds significant importance for Penn Entertainment, which holds exclusive rights to the ESPN BET trademark through a multi-year partnership. During last week’s quarterly earnings call, Penn’s Chief Technical Officer Aaron LaBerge expressed enthusiasm for the upcoming launch, emphasizing it as a “first-in-market integration.”
Innovative Watch-and-Bet Features
Last November, ESPN unveiled a feature allowing users to seamlessly link the ESPN BET app with the main platform, enhancing the overall user experience.
Following the introduction of this account-linking functionality, Penn Entertainment experienced a marked increase in user engagement on ESPN BET, including longer time spent on the app, elevated bet frequency, and a greater mix of parlay bets, as noted by Barclays analyst Brandt Montour. LaBerge remains optimistic about the watch-and-bet features, characterizing them as “best in class.”
During an ESPN event, Pitaro discussed the long-term vision for a personalized version of the network’s signature “SportsCenter.” This initiative will allow viewers to curate content based on their sports preferences on any given day.
ESPN’s new DTC platform will include a feature dubbed “SportsCenter for You,” as outlined by executives Burke Magnus and Jimmy Pitaro. For avid fans, such as Yankees supporter Pitaro, AI technology will custom-tailor coverage to suit individual preferences while also considering rival teams, ensuring a holistic viewing experience.
When asked about the potential of integrating sports betting into this personalized viewing experience, ESPN BET Vice President Mike Morrison acknowledged the challenges posed by existing rights agreements. However, he expressed interest in the concept of offering a streaming game pass as an incentive for active bettors.
Potential Market Share Expansion
Echoing LaBerge’s sentiment, Penn Entertainment CEO Jay Snowden remarked during the earnings call that the upcoming betting enhancements will provide an unmatched level of “personalization and differentiation.” This is one of the key factors influencing Snowden’s belief that ESPN BET could significantly capture a larger share of the online sports betting market by the end of the year.
Currently, ESPN BET is confronted with intense competition from market leaders such as FanDuel and DraftKings, making its upcoming features all the more critical for enhancing its market position.
In an effort to bolster engagement, ESPN recently introduced an innovative feature for their sportsbook—GolfCast Live—enabling users to track every hole, explore the course layout, and make real-time predictions with interactive statistics and visualizations during significant PGA events.
Additional enhancements are anticipated in the near future, as ESPN stated in a recent news release. Sources indicate that the company is diligently refining these betting upgrades, with further updates expected shortly.
It’s worth noting that Penn Entertainment entered into a landmark 10-year, $1.5 billion agreement with ESPN to leverage the brand for its betting platform. This agreement includes an opt-out clause allowing either party to exit the partnership after three years, indicating a strategic focus on mutual growth within the evolving landscape of sports betting.
