On Monday, sen. Elizabeth Warren (D-Mass.) warned that NFL fans could face higher costs and fewer viewing options after federal regulators approved ESPN’s sweeping acquisition of key NFL Media assets.
Warren Flags Sports Streaming Consolidation Risks
Taking to X, Warren criticized the Donald Trump administration after regulators approved ESPN’s deal to acquire major NFL Media assets, calling it “bad news for anyone who watches the NFL.”
Warren said the consolidation would likely result in “higher costs, and fewer choices to watch games,” arguing that the deal strengthens ESPN’s dominance in sports streaming at the expense of consumers.
Government approval cleared the way for ESPN, owned by Walt Disney Co. (NYSE:DIS), to finalize its billion-dollar acquisition, which includes NFL Network and the linear television rights to the league’s popular RedZone channel.
What ESPN Gains From The Deal
The agreement significantly expands ESPN’s NFL footprint. ESPN will now air 28 regular-season games per year, its highest total ever, after absorbing seven games previously shown on NFL Network, reported The Athletic.
The deal also eliminates “Monday Night Football” doubleheaders, shifting several games back to NFL Network.
Starting this fall, ESPN’s $29.99-per-month direct-to-consumer service will include full access to NFL Network, while NFL fantasy football will be integrated into ESPN’s existing fantasy platform.
In a joint statement to the publication, the NFL and ESPN said fans can expect “expanded NFL programming, greater access to NFL Network, innovative Fantasy experiences and unparalleled coverage.”
NFL Keeps Leverage As Media Landscape Shifts
Despite the sale, the NFL will continue to operate NFL+, NFL.com and other digital assets, while retaining production control of RedZone and selling its digital rights to ESPN.
The league also holds a significant stake in ESPN, further aligning the two sides.
The NFL is currently locked into media contracts worth more than $110 billion, with an opt-out clause in 2030.
Industry expectations are growing that the league may push to renegotiate earlier as competition from Amazon.com Inc. (NASDAQ:AMZN) Prime Video, Netflix Inc. (NASDAQ:NFLX) and YouTube, a subsidiary of Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, intensifies.
Disney CEO Sees Streaming Upside
During Disney’s fiscal first-quarter earnings call, outgoing CEO Bob Iger said the deal strengthens ESPN’s streaming ambitions.
“We’re really happy that we were able to close it when we did,” Iger said, adding that expanded NFL content is particularly valuable for ESPN’s streaming business.
However, Iger declined to speculate on the long-term future of ESPN’s relationship with the NFL beyond the current agreement.
Disney posted adjusted earnings of $1.63 per share, topping analysts’ expectations of $1.57, while revenue climbed 5% year over year to $25.98 billion, also beating the $25.74 billion consensus estimate.
Price Action: Shares of Walt Disney Co. closed Monday at $104.45, down 7.4% and ticked up 0.45% to $104.92 in premarket trading Tuesday, according to Benzinga Pro.
DIS maintains a negative price trend over the short, medium and long terms with a poor Momentum ranking. Additional performance details, as per Benzinga’s Edge Stock Rankings.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Recent Comments