Fox, Disney and Warner Bros. Discovery are creating a joint sports streaming platform
2/6/2024
Fox, Disney and Warner Bros. Discovery are creating a joint sports streaming platform.
The media conglomerates will collaborate to establish a joint venture aimed at launching a new sports streaming service, drawing from their extensive collection of professional and collegiate sports rights. These rights encompass a wide array of sports leagues, including the NFL, NBA, MLB, FIFA World Cup, and various college competitions.
The service, yet to be named, will offer a comprehensive package of programming, incorporating television channels such as ESPN, TNT, and FS1, as well as streamed sports content. Subscribers will have the option to access the service either independently or as part of a streaming bundle through platforms like Disney+, Hulu, or Max.
Disney CEO Bob Iger expressed, "This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other leaders."
Media analyst Michael J. Wolf of Activate Consulting noted that the venture targets the 40 million households in the U.S. with high-speed internet but no pay TV subscription. Additionally, a digital sports offering is expected to attract interest from tech giants like Amazon, Apple, and Roku, which curate streaming video for millions of consumers.
Former Disney executive Bernard Gershon described the move as a strategic defensive maneuver with significant potential upside. He emphasized the enduring appeal of live sports as a potent audience magnet, whether broadcasted on television or streamed online.
The CEOs have been in discussions about this collaboration for some time, intending to provide consumers with more options without replacing flagship networks like ESPN and FS1, which already cater to a dedicated sports fanbase on television.
Fox Chief Executive Lachlan Murdoch remarked, "We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place."
The jointly-owned entity will have equal board representation from the three media companies and will license sports content on a non-exclusive basis. An independent management team will oversee its operations.
The launch of this sports-centric service underscores the recognition of a sizable market for sports content beyond traditional TV. It represents an opportunity for these media companies to monetize their valuable sports rights in new ways.
Warner Bros Discovery CEO David Zaslav emphasized, "This new sports service exemplifies our ability as an industry to drive innovation and provide consumers with more choice, enjoyment, and value."
Last year, Disney CEO Bob Iger hinted at the company's intention to retain ESPN and explore partnerships and investments to transition the network to an online platform.
Activist investor Nelson Peltz believes Disney can achieve streaming profitability by bundling its ESPN+ service with a larger player interested in sports, according to recent media reports.
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