Report: ESPN may subsidize wireless data plans

Roger Yu, USA TODAY | USATODAY

ESPN has had talks with at least one U.S. wireless carrier for a deal that would have the sports cable channel subsidize wireless data plan costs for some users, according to the Wall Street Journal.

Under the deal, ESPN may pay a carrier to ensure that data consumed by subscribers to read or watch ESPN content would not be counted against its monthly data caps.

No such arrangement is "imminent," the report says, citing people familiar with the matter.

Major media companies that have a heavy volume of video or audio content have been mulling over the issue of consumer mobile access as U.S. carriers impose monthly caps on data use.

Unlimited data plans were once common but U.S. carriers have introduced data caps in recent years to generate more revenue as users increasingly download or stream heavy video files. Smartphone subscribers who go over their monthly limit often face hefty overage charges.

Meanwhile, wireless carriers have been open about their interest in partnerships that call for content providers to help pay for data use. At least one wireless carrier has already informed ESPN that "significant numbers" of its mobile users exceed their monthly cap before the end of the month, the report says.