DIS Walt Disney Co

By Keach Hagey 

ESPN and Vice Media are teaming up to make shows together and swap content onto each other's TV channels and digital platforms, deepening the relationship between the sports network's owner, Walt Disney Co., and the youth-focused media company.

In addition to collaborating on short-form series together, films from ESPN's documentary series "30 for 30" will re-air on Vice's new TV channel, Viceland, the companies announced Tuesday. Edited versions of the Viceland show "Vice World of Sports" will air on ESPN's linear and digital channels.

The production and distribution deal is a sign of the increasingly interesting alliances that are being forged as the cable TV bundle comes under pressure from cord-cutting, particularly among the young audiences that Vice is targeting. ESPN's parent company, Disney, led a sharp selloff in media stocks last summer after it lowered its financial forecast in part because of subscriber losses at ESPN as consumers cut the cord or opted for "skinnier" cable packages.

Over the last two years, Disney has ramped up its investment in Vice to become its largest outside stakeholder. Last fall, Disney invested $400 million for a roughly 9% stake in Vice. That's on top of the stake Disney already held through its joint venture with Hearst in A+E Networks, which has a more than 15% stake in Vice.

Viceland, a joint venture between Vice and A+E Networks, was launched earlier this year on A+E's former H2 channel.

Vice began as a punk 'zine in Montreal in 1994, and has expanded into one of the largest digital content companies, now in the midst of a major expansion into traditional television. The funding round last year valued it at nearly $4.5 billion.

The collaboration between Vice and ESPN will bear some of the hallmarks of Vice's edgy programming reputation. Shows in development will look at, among other things, "dominant athletes, fascinating characters and championship events that reside outside the mainstream," the companies said. They are also working on a short-form animated series. In addition to the "Vice World of Sports," which made its debut on April 27, Vice Sports shows including "The Clubhouse" will appear on ESPN properties.

"Growing up watching ESPN I came to love the brand and their content. Maybe a little too much. The amount of manly tears shed over various 30 for 30's throughout the years has been nothing short of embarrassing," said Shane Smith, Vice Media's chief executive, in a statement.

"Evoking manly tears from Shane Smith is no small task, and I take immense pride in that," said ESPN President John Skipper in a statement, adding, "And I applaud Shane for understanding that television is the smartest path to worldwide leadership."

Write to Keach Hagey at keach.hagey@wsj.com

(END) Dow Jones Newswires

May 03, 2016 12:14 ET (16:14 GMT)

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