There were signs this dream partnership was a bad fit from the start, and some reporting that indicated there were executives at TKO/WWE and Disney-owned ESPN who knew it. ESPN shot those down, just as they may this new report from SEScoops’ BJ Bethel.
Bethel writes that “multiple sources” tell SEScoops that only a year into it, ESPN’s already decided it won’t be renewing its $1.6 billion dollar deal for exclusive domestic rights to WWE premium live events when it expires in four years.
Among the “multiple
problems” plaguing ESPN and WWE’s deal that Scoops’ sources cited:
- The current media market landscape
- “Culture and synergy” issues between the two companies/brands
- The failure of cable and satellite providers to pick up the cost of ESPN’s Unlimited app/subscription platform for customers
A major issue is apparently that the deal was cut by high-level people at TKO and Disney rather than those familiar with the day-to-day business of ESPN and WWE. That meant that when it came time to launch the partnership last fall, “there were virtually no discussions” between WWE and ESPN folks around the launch of ESPN Unlimited and as WWE PLEs started streaming on it in the U.S.
From the ESPN side, that could be because their bosses at Disney told them not to worry about it. Disney believed Unlimited would offset the losses ESPN has experienced due to streaming’s rise at cable television’s expense, and the loss of fees cable providers paid for the right to carry ESPN. WWE PLEs were allegedly seen as something that would inspire cable companies to give existing ESPN cable subscribers access to Unlimited in order to keep their business. By that logic, ESPN wouldn’t even have to promote WWE. They could just put it on the app as a value-add to partners who’ve also been hurt by the decline of the PPV business.
It turned out to be more difficult than that to get cable and satellite providers to sign on to the Unlimited plan. Sara Fischer at Axios reported that almost four out of five ESPN Unlimited users subscribe through the Disney+/Hulu streaming bundle rather than through a cable/satellite package. So while Unlimited bundling is happening, it didn’t happen quick enough to bring in the revenue Disney expected.
When the conversations between WWE and ESPN teams did finally happen, they had little choice but to up the promotion of WWE on ESPN. The “not a real sport” crowd that makes up a significant chunk of ESPN’s core audience hasn’t exactly been quiet about the increased promotion of pro wrestling on shows like SportsCenter. You can imagine their reaction to this from a recent Awful Announcing report:
In April, during the week leading up to WrestleMania, ESPN’s three flagship studio programs — Get Up, First Take, and The Pat McAfee Show — spent more time discussing WWE than MLB and the NHL combined. In total, the shows dedicated 14 segments to WWE that week, while dedicating only 7 to MLB and 5 to the NHL. WWE was also the third-most-discussed “sport” in ESPN’s daily programming that week, behind just the NBA (44 segments) and NFL (25 segments).
It’s not a done deal yet, though. One of Scoops’ sources told him “a massive increase in subscriptions or providers picking up the app at a deal friendly to ESPN” can still save the deal.
We’ll see if this report picks up steam, gets shot down, or what the next shift in a rapidly changing — and consolidating — media environment. Let us know what your read on the WWE/ESPN relationship is currently in the comments below.
