Walt Disney's ESPN Secures NFL and WWE Deals, Boosts Streaming Platform

The Walt Disney Company and TKO Group Holdings have secured agreements with the NFL and WWE to bolster their live sports portfolios and attract premium subscribers. Disney's ESPN DTC streaming service will feature NFL Network, NFL Red Zone Channel, and WWE 'Premium Live Events' starting August 21. The deals are expected to provide significant value to consumers and help Disney stabilize subscriber growth.

The Walt Disney Company and TKO Group Holdings have secured significant agreements with the NFL and WWE to enhance their live sports offerings and attract premium subscribers. These deals, set to launch on August 21, are expected to provide substantial value to consumers and help stabilize subscriber growth for Disney's ESPN DTC streaming service.

Disney's ESPN DTC streaming service will feature NFL Network, NFL Red Zone Channel, and WWE 'Premium Live Events' starting August 21. The NFL deal includes a 10% equity stake in ESPN's unit, while the WWE agreement will see the company pay around $1.6 billion over five years for the rights to the 10 marquee events staged annually by WWE, including WrestleMania, Royal Rumble, and SummerSlam [1]. This marks a significant expansion of content for the streaming service, which will be available for $29.99 per month without a pay TV subscription.

These deals come as streaming usage surpasses broadcast and cable combined in the U.S. television market, with streaming now accounting for 44.8% of usage compared to linear's 44.2% [2]. The move is part of Disney's broader strategy to capture a larger share of the streaming market and reduce its reliance on cable and satellite subscriber affiliate fees.

The inclusion of NFL and WWE content is expected to help ESPN attract and retain subscribers, particularly cord-cutters who are seeking comprehensive sports coverage without traditional pay TV subscriptions. The addition of WWE events, which have a younger, more diverse, and female-heavy audience, is also seen as a strategic move to broaden the service's subscriber base [3].

However, these deals come with significant financial commitments. ESPN is paying the NFL an average of $2.7 billion per year and the WWE deal will average $325 million per year. These increased rights fees, along with the potential loss of revenue from cable and satellite subscribers, pose risks to ESPN's financial outlook. Despite these challenges, Disney is optimistic that the enhanced content offering will drive subscriber growth and stabilize the company's financial performance.

References:
[1] https://www.cnbc.com/2025/08/11/espn-fox-to-bundle-upcoming-streaming-services-for-39point99-a-month.html
[2] https://apnews.com/article/espn-nfl-wwe-bb54d33ae71144ea5bab08070eeb2585
[3] https://www.latimes.com/entertainment-arts/business/story/2025-08-06/wrestlemania-and-other-major-wwe-events-will-be-streamed-on-espn