May 30 – ESPN may start offering coverage of Major League Soccer (MLS) games online, without a required subscription to ESPN.
Having recently struck an eight-year deal with MLS, ESPN is seeking to capitalise on its rights by trying to “capture more money direct from consumers”, said ESPN president John Skipper.
ESPN is examining the model set by companies such as Netflix that generate revenue outside the traditional pay television system by considering an internet-based approach for the MLS.
ESPN currently offers an MLS Live service, costing $65 a season, which gives subscribers digital access to most of the league’s games. However, it appears possible that other business models could replace it if the numbers (distribution reach, subscribers and revenues) stacked up, offering a route for cord cutters to watch MLS games.
Earlier this year ESPN struck a deal with Dish Network using similar principles. Dish Network allows customers to buy its channels on the Web, but they must still be bought as part of a larger bundle. Hence it could be that an internet-based approach would end up as more of a fusion with pre-existing pay-TV bundles.
A decision is expected over the coming months.
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