ESPN inks deal with NFL to acquire NFL Network, Red Zone Channel
The agreement, which will see NFL media assets including NFL's linear RedZone Channel, and NFL Fantasy, will allow the NFL to license to ESPN certain content and other intellectual property to be used by NFL Network and other assets.
'Today's announcement paves the way for the world's leading sports media brand and America's most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can,' said Bob Iger, Chief Executive Officer of The Walt Disney Company, promising the deal would 'add to consumer choice,' and 'provide viewers with even greater convenience and quality,' of ESPN's coverage of the league.
The deal comes as ESPN prepares to launch a direct-to-consumer streaming service later this year and capitalize on the NFL's explosive popularity.
The league has long awarded lucrative media rights agreements with major legacy media companies like Comcast, Disney and Fox, but has in recent years partnered with a growing number of tech companies like Netflix and Amazon to broadcast games.
ESPN's push toward direct-to-consumer streaming comes amid broader concerns about increased cord-cutting and an increasingly tough market for advertising on linear television channels.
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