It's my understanding that live streams on WatchESPN are only available if you get ESPN as part of a cable or satellite TV subscription. Internet-only subscribers get access to ESPN3 only. I believe that is true for all providers.
Here's a link to their explanation. So I'm curious how you were able to watch the College Football Playoffs.
I'm not a huge sports fan, but I watch one or two NFL games every week on network TV during the season. I can't watch Monday night except when the local team is playing, when it's also available OTA. I usually watch one college game every Saturday on network TV if I'm not attending one of the local games live. Local pro basketball and baseball is a little harder to find OTA, but there's plenty available for my limited needs. I also go to 10-15 MLB games live every year. I prefer baseball live vs TV, but that does get expensive. My son and I go to a sports bar 2-3 times per year when there's something we really want to watch that's not on network TV. We watched a couple ESPN college bowl games that way recently and had a great time.
Yes, there are online streams available for pretty much any live sport anywhere in the world. But these are most likely illegal and certainly of very low streaming quality, if they work at all. I stay away from these for both reasons. For the hardcore sports fan who appreciates HD, cable or satellite is your only viable option for now. I'm not hardcore enough to justify the additional cost. Hopefully, we'll get more a-la-carte options in the near future as hordes of people cut the cord and migrate to streaming.