Happy Sunday folks,

Some of you have been waiting for it and some of you have been dreading it:

We’re talking Disney-adjacent stuff this week.

ESPN and the NFL are making waves with a game-changing deal. ESPN's stake in NFL Network is set to revolutionize football media. Let’s get into this partnership and why it works for each org.

Quick hits today. No filler.

BTW - We have caved to TikTok. Follow us!

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Talking about the #media deal that the NFL and ESPN are gonna make eventually. #sportsmedia #1min #strategicbites #streamingwars

ESPN in Talks to Acquire NFL Network and Media Assets

ESPN and the NFL are talking about ESPN possibly buying the NFL Network and other media parts. This is going to be the first domino of exclusively watching live sports on our phones.

What exactly is being exchanged, you ask?

Simple: ESPN would get NFL’s media arm in exchange for equity in ESPN.

It’s the type of deal that Disney has been floating around for a while: to partner with a whale in order to lock in a huge distribution channel for its streaming strategy.

Not sure if this is the deal to be done, but maybe Disney isn’t done making deals yet. If there’s talk of another deal, we think it’ll probably be a telco like T-Mobile or ATT.

Re-Calibrating Strategies: NFL's Decision to Offload NFL Media

The NFL is thinking about selling off NFL Media, like the NFL Network, because it wants to focus more on what it does best. They're trying to stop spending on stuff that doesn't help their main business.

ESPN's Pursuit of Expanded Viewership

ESPN wants more people to watch its shows on streaming platforms, especially since fewer people are using cable TV. They're getting ready for a future where everyone streams shows online. Buying NFL Network could help ESPN stay ahead in the streaming game.

Market Dynamics and Strategic Alignment

1. Targeting the Largest Audience

There aren't many new sports for new sports out there, so ESPN is trying to reach as many people as possible. Buying NFL Media means ESPN can further tap into NFL fanbase

2. Synergy with Disney's Digital Transition

Bringing NFL Media into Disney's world fits with Disney's plan to go digital. It'll make Disney's content more appealing to a wider audience, especially those who prefer to watch online.

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Implications for NFL and ESPN

1. NFL's Strategic Focus

By letting go of NFL Media, the NFL can focus more on what it does best—running the football league. This focuses all talent back to its on-field product, rather than distracting itself with running a network.

2. ESPN's Enhanced Partnership with NFL

Getting NFL Network and related assets shows ESPN's commitment to working closely with the NFL, bringing the most eyeballs to its platforms, and turning those eyeballs into paying customers for its streaming offering down the road.

Leadership Perspective

1. Bob Iger's Strategic Vision

Disney's boss, Bob Iger, has been looking for smart partnerships to help ESPN grow. This move shows how ESPN is adapting to fewer cable viewers and building up its streaming services.

2. Roger Goodell's Announcement

NFL Commissioner Roger Goodell's memo talks about how the league is changing to stay competitive. ‘Competitive’ here probably means ‘we’re not going to focus on being 4th in something, so let’s go back to doing what we do best.’

Wrap it up for me

The potential deal between ESPN and the NFL for NFL Network and media assets is a big deal. It's not just about buying a network for ESPN—it's a great example of how an important legacy media company plans to transition to an all-digital model. And for the NFL, it’s simply about re-targeting and re-calibrating itself back to what it does incredibly well: producing the best on-field product on our screens.

Have a great week!

Ahmed and Peter