The service will launch this fall and cater to sports fans who don't subscribe to the traditional cable bundle.
One person associated with the launch of the new venture told CNBC the platform will be "a monster" and massively disrupt cable TV.
Cable TV has been relegated to an add-on that helps keep people subscribing to high-speed internet.
The cable bundle has largely survived because it still contains exclusive live news and sports.
Previously, the only way for cord cutters to get ESPN outside the cable bundle would have been that coming service.
Persons:
LeBron James, Jevone Moore, it's, Lachlan Murdoch, NBC's Peacock, Bob Iger, Rich Greenfield, Max, David Zaslav's, There's, David Zaslav, Lightshed's Rich Greenfield
Organizations:
Los Angeles Lakers, NBA, Los Angeles Clippers, Crypto.com Arena, Warner Bros . Discovery, Fox, Disney's ESPN, Comcast, DirecTV, CNBC, YouTube, Charter, Cable, Verizon, Mobile, Satellite, Google, Hulu, Live, Disney, Warner Bros, NBC, CBS, National Football League, Paramount, ESPN, Fox News, CNN, MSNBC, Wall Street, Financial Times, TNT, TBS, HGTV, Discovery, Paramount Global
Locations:
Los Angeles