Fans to benefit from new ESPN-NFL agreement

As competition for sports streaming rights escalates, with YouTube, Netflix and Amazon challenging traditional media companies for game packages, Disney has found an innovative way to strengthen its grip on football.

- Brooks Barnes

NEW YORK -

The Walt Disney Company, which owns ESPN, and the National Football League (NFL) on Aug 5 announced a complicated deal for the NFL to take a 10 percent equity stake in ESPN.

In exchange, ESPN will acquire the league's traditional NFL Network and certain rights to the fan-favorite RedZone Channel, among other media assets.

NFL Fantasy Football, for instance, will merge with ESPN Fantasy Football.

"This is a gigantic leap forward for ESPN as it gets ready to launch its service," Bob Iger, Disney's chief executive officer said, noting that the NFL Network would be "seamlessly integrated" with ESPN's flagship streaming service, which is expected to be introduced later in August.

"We think that it will go a long way towards improving ESPN's prospects when it migrates more and more into a direct-to-consumer product."

ESPN's new streaming service, which will cost US$30 (S$39) a month, will include all ESPN programming, including live events—some 47,000 a year.

For the first time, ESPN viewers will not need a cable or satellite subscription.