What Are Apple And ESPN Working On?

According to John Skipper, president of Walt Disney Co DIS’s ESPN, the company is in ongoing talks with Apple Inc. AAPL to provide an over-the-top subscription streaming service.
 

In an interview with the Wall Street Journal, Skipper discussed ESPN’s talks with Apple to target younger customers via streaming content.

“They are creating a significantly advantageous operating system and a great television experience, and that television experience is fabulous for sports,” Skipper said of Apple. “We are big proponents of believing it would be a fabulous place to sell subscriptions. We have ongoing conversations.”
 

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If Apple’s streaming service is as good as Skipper seems to think it is, streaming market leader Netflix, Inc. NFLX could soon face a powerful new rival.

Although Skipper reiterated ESPN’s commitment to the pay TV model, live sports content has been viewed as a tipping point for streaming TV. At this point, the lack of live sports streaming subscription services remains a major justification for keeping a cable TV subscription.

Disclosure: the author holds no position in the stocks mentioned.