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The news: Disney and DirecTV have reached a new carriage fee agreement, ending a two-week blackout of channels including ABC and ESPN that affected high-profile events like the NFL season kickoff and the second presidential debate.

DirecTV is currently engaged in a similar channel blackout over carriage fees with Disney that has seen its satellite customers lose access to ESPN (and other Disney-owned channels) as the NFL and college football seasons kick off. DirecTV has filed a complaint with the FCC over Disney鈥檚 actions, signaling a possible legal battle to come.

In addition, Max, Peacock, and Paramount+ have doubled down on sports rights, while ESPN is pivoting from a cable network to a D2C streaming service. All this is driving a surge in CTV ad spending, especially since live sports content commands loyal viewership and high ad rates. What does this mean for marketers, media companies, and distributors? The TV ship has sailed.

This year鈥檚 March Madness tournament soared to record viewership thanks to stars like Caitlin Clark, leading ESPN to sign a major deal and driving brands like Powerade to follow suit. As sports viewership grows, the brands that get in early and develop relationships will win out in the long term.

As that process plays out and legacy broadcast channels like ESPN move from the cable and satellite ecosystem to a D2C streaming model, sports fans will ditch their cable bundles for streaming services. That migration of viewership could be the final blow for the legacy pay TV business, which in recent years has been held together by live sports. The future of streaming media is ad-supported.

So a day after the WNBA Championship, the big headline on ESPN is a holdout. There's already talks of a lockout happening for next year and this is as the WNBA Players Association is going to try to leverage themselves for a much better CBA contract. And if you were to put then... How much money is at stake?

This year, streaming services will finally earn more than traditional TV in subscription revenues.

In June, Disney rolled out playable ad formats on Hulu and ESPN. Viewers can use their connected TV remote to interact with a Quiz Show trivia game or a Beat the Clock challenge, both which feature an advertiser鈥檚 branding at the forefront. Topgolf, one of the first brands to test these, released an ad that asked viewers to adjust the power of the swing, then hit golf balls on target.

How this works: Disney's ABC and ESPN will continue to be the go-to channels for marquee events, including the NBA Finals and Christmas Day games. They will also broadcast NBA Saturday Primetime and NBA Sunday Showcase packages, ensuring high visibility for key matchups. NBCU is set to reintroduce NBA coverage, featuring opening night games and a new Sunday night primetime slot.

These deals, valued at $76 billion, will see the NBA Finals continue on ABC/ESPN for the next 11 seasons. TNT Sports, a current NBA broadcast partner owned by Warner Bros. Discovery, may still contest these agreements, according to CEO David Zaslav. The deals await approval from the NBA's board of governors, expected to be a formality during its meeting in Las Vegas next week.

But these companies, especially ESPN, have a lot of digital sports that isn't on the TV network and I don't get the sense that's on here. You'd have to subscribe separately to ESPN+, even though ESPN is one-third of this thing. Max Willens:. It's very dangerous to market something and I guess we don't know that this is how it's going to be marketed because they have yet to start publicizing it.

McAfee's transition to ESPN further underlines Disney's push for more sports-oriented content, which builds on returning CEO Bob Iger鈥檚 February move to turn ESPN into one of the company鈥檚 three operating units, alongside Disney Parks and Disney Entertainment. ESPN+ continues to grow at a healthy clip (+27.1% year over year).

ESPN is also a valuable asset under Disney鈥檚 umbrella, attracting digital live sports viewers. But Disney鈥檚 lead is threatened by the growth of YouTube, which dominates time spent among young users. Viewership of The Disney Channel, the company鈥檚 child- and teen-centric network, has plummeted over the past decade.

But ESPN Bet and Fanatics are both poised to enter the market with strong branding and reach, which will increase the pressure on incumbents.

They include adding an ESPN content tile within the Disney+ platform by late 2024 and plans the launch of standalone ESPN streaming service in 2025. Moreover, Disney CEO Bob Iger revealed that the company would start enforcing measures against password sharing starting in June, following a model similar to Netflix.

This collaboration aims to offer a subscription-based "skinny" bundle of sports channels, including ESPN, Fox Sports, and Warner Bros. Discovery networks, alongside ESPN+. The service is set to launch in the fall of 2024, with an additional option to bundle Disney+, Hulu, and Max.

Disney will attract major attention at Upfronts: Ad-supported subscribers surpassed 157 million, giving it a leg up over the competition.

But it also focused its remaining ad spend on sports programming, commanding 23% of insurance ad impressions on ESPN. By contrast, Progressive鈥檚 ad spending stayed well above its competitors鈥�, and it rose to become the most-seen insurance brand on TV over this time鈥攊ncreasing its share of ad impressions to 22.36%. Next steps: We expect insurers鈥� advertising spend to rise throughout 2024.

ESPN, Amazon, and Warner Bros. Discovery are negotiating for NBA streaming rights. Fox, Warner Bros. Discovery, and Disney are planning a joint sports venture to compete with Amazon, which has Thursday Night Football, even as smaller streamers like Fubo ask regulators to probe the plans. Netflix is about to become the home of World Wrestling Entertainment (WWE).

The joint sports offering between ESPN, Warner Bros. Discovery, and Fox would also combine multiple offerings. These platforms need to find other ways to stand out beyond exclusivity. Look for streamers that offer the best first-party data.

Consumers have repeatedly expressed interest in bundles, especially as streaming prices rise, and Disney鈥檚 vast portfolio that includes Disney+, ESPN, ABC, and more could result in a high-value bundle that would disrupt the streaming landscape.

ESPN takes a shot at creating a sports streaming hub. Yes, Super Bowl ads are expensive, but compared to what? 鈥楳ake noise鈥�: How Tubi鈥檚 disruptive Super Bowl ad happened. Yesterday鈥檚 Chart of the Day: Temu takes the shine off Shein.

Ross says ESPN Sportsbook. Zak says ESPN Betting, and Stephanie is the only one who's correct with ESPN Bet. ESPN Bet is the name that they have chosen. They will be promoting on regular ESPN broadcasts and could possibly see integration with streaming service ESPN+ as well. Folks, any thoughts on this move or just the incredibly fast evolution of sports betting in the US? Stephanie Taglianetti:.