ESPN plans to officially launch its new direct-to-consumer (DTC) streaming platform this fall, with a monthly fee set at $29.99. ESPN Chairman Jimmy Pitaro said that this move will be one of the "biggest transformations" in ESPN's history, and the new platform will also integrate enhanced sports betting features.
This service is significant for Penn Entertainment, which holds the exclusive rights to the ESPN BET brand. Penn's Chief Technology Officer Aaron LaBerge described the upcoming betting feature as a "market-first integration" and is very optimistic about the "bet while you watch" experience soon to be launched.
As early as November last year, ESPN introduced an account linking feature, allowing users to connect their main ESPN platform with ESPN BET in one click. Barclays analysis pointed out that this feature significantly increased betting frequency, duration, and parlay combinations.
Additionally, ESPN is exploring personalized content experiences, such as allowing viewers to choose to watch customized segments of "SportsCenter" based on their interests. ESPN BET Vice President Mike Morrison noted that the deep integration of betting content may be limited by existing copyright agreements, but he is optimistic about the potential to motivate betting users through a "streaming game pass" in the future.
Although ESPN BET is currently behind FanDuel and DraftKings, Penn CEO Jay Snowden believes that the new service will bring unprecedented "personalization and differentiation" and is expected to boost its share in the US market.
ESPN stated that more betting features will be gradually introduced in the future. According to insiders, the company is actively testing and optimizing related upgrades. ESPN and Penn signed a 10-year, $1.5 billion brand cooperation agreement in the summer of 2023, with a clause allowing unilateral exit after three years.
