Walt Disney's (NYSE:DIS) ESPN is preparing to offer its channel as a subscription-based streaming service in the coming years to those who have cut the cable cord, according to The Wall Street Journal.
Citing people familiar with the matter, the report states that the shift will have profound implications for the entertainment giant and the broader television business.
Executives at ESPN and parent Disney are said to have believed for years that the move for the sports channel to become a standalone streaming service is inevitable, and with consumers increasingly cutting the cable-TV cord, the company is reportedly actively preparing for the shift. They have assigned the project with the code name "Flagship."
However, the WSJ said ESPN will continue to offer the TV channel after launching a streaming option. There is no firm timeline for the change.
Furthermore, ESPN has started to secure flexibility in its deals with cable providers to offer the channel directly to consumers, although the financial terms of the deal weren't disclosed.
ESPN already has a sports streaming app called ESPN+, but it does not offer access to the full channel.