ESPN and NFL have arrived on a deal that will acquire a Disney -owned sports media company NFL network and some other media assets that are owned and controlled by NFL in exchange for a 10 percent equity share in ESPN.
The agreement, which will look into NFL’s linear Redzone Channel and NFL fantasy, will allow NFL to license some content and other intellectual property ESPN used by NFL network and other assets.
Bob Igar, Chief Executive Officer of Walt Disney Company Bob Igar said, “Today’s announcement is to provide an even more compelling experience for NFL fans for the world’s leading sports media brand and America’s most popular sport, which can only ESPN and Disney,” said Bob Igar, Chief Executive Officer of Walt Disney Company, said, “The consumer will provide the audience with more convenience. ,
The deal is set to start a direct-to-conjumer streaming service and NFL’s explosive popularity later this year.
The League has long been awarded attractive media rights agreements with major heritage media companies such as Comcast, Disney and Fox, but has partnered to broadcast the game in recent years with the increasing number of technology companies such as Netflix and Amazon.
ESPN push towards direct-to-consumer streaming comes amidst widespread concerns about the rapidly tough market for advertising on linear television channels.
