ESPN plans enhanced betting tie-ins for much-hyped launch of streaming service
ESPN Chairman Jimmy Pitaro announced this week that the company’s new direct-to-consumer service will launch this fall at a cost of $29.99 per month, landing within range of the price estimates projected before the announcement.
Within the announcement, ESPN disclosed that the new app will contain enhanced betting tie-ins. The rollout is arguably one of the most impactful developments in the post-COVID sports media landscape. Pitaro has described it as possibly the “largest transition” in company history.
The launch will be important to Penn Entertainment, which has exclusive rights to the ESPN BET trademark under a multi-year partnership. On last week’s quarterly earnings call, Penn Chief Technical Officer Aaron LaBerge said that the company is “incredibly excited” about the launch, describing it as a “first-in-market integration.”
Additional watch-and-bet integrations
Last November, ESPN introduced a new feature that enabled customers to link their ESPN BET app with the company’s main platform simply through a quick tap.
Upon the introduction of account linking, Penn saw a spike in time spent by customers on ESPN BET, increased bet frequency and a higher parlay mix, Barclays analyst Brandt Montour wrote in a research note. LaBerge is bullish on the watch-and-bet features that will be available through the app, which he described as “best in class”.
At an ESPN event on Tuesday, Pitaro discussed the future of a personalised version of the network’s “SportsCenter” down the road. Under the initiative, viewers may be given the option to choose segments based on their preferences on a particular day.
Asked if sports betting could play a role in the prototype, ESPN BET Vice President Mike Morrison responded that a personalised bet vision experience may face some challenges in the face of various rights agreements.
Nevertheless, Morrison is intrigued by the concept of a streaming game pass as an incentive for bettors who wager on the contest.
A market share boost?
Echoing the sentiments of LaBerge, Penn Entertainment CEO Jay Snowden noted on his company’s call last week that the betting upgrades planned for the fall offer a level of “personalisation and differentiation” not available today.
It is one reason why Snowden believes ESPN BET will increase its share of the nation’s online sports betting market before year’s end. Penn held the call during a challenging period for the company, as ESPN BET lags market leaders FanDuel and DraftKings by a considerable amount.
Additional features will be rolled out at a later date, ESPN said in a news release. As it relates to the betting enhancements, there are indications that ESPN is working on honing the upgrades, with further updates expected in the near future, according to a source with knowledge of the plan.
Penn signed a 10-year, $1.5 billion agreement with the broadcast company two summers ago to make use of ESPN’s brand for its betting platform. The agreement contains an opt-out clause that allows either side to exit the partnership after three years.