A FOX Sports TV camera operator during the NFL Week 5 game between the Atlanta Falcons and the Carolina Panthers at Mercedes-Benz Stadium on October 11, 2020 in Atlanta, Georgia.
David J. Griffin | Sports Icon | fake images
walt disneyIt's ESPN, Fox and Warner Bros. Discovery plan to launch a joint sports streaming service this fall, giving consumers a new way to access live sports for the first time, the companies said Tuesday.
The platform, which will be owned by a newly formed company with its own leadership team, does not yet have a name or price. Disney, Fox and Warner Bros. Discovery will each own a third of the stake.
Consumers could subscribe directly through a new app. Subscribers would also have the possibility of combining the product with the streaming platforms of the companies Disney+, Hulu and Max.
The product will be a linear networking package that is slimmer than a standard cable offering, designed specifically for sports fans. It will consist of all broadcast and cable networks owned by Disney, Fox and Warner Bros. Discovery that broadcast sports, along with ESPN+.
From Disney, that includes ESPN and its sister networks, such as ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as the ABC broadcast network. Warner Bros. Discovery networks that show sports are TNT, TBS and TruTV. Fox will include the Fox broadcast station along with FS1, FS2 and BTN.
While no price has been determined, a logical starting point could be $45 or $50 per month with a lower introductory price to attract subscriptions, according to a person familiar with the matter, who asked not to be identified because discussions about the service have been private. . A second person added that even with the promotional pricing, the service will cost more than $30 a month.
The companies' long-term goal is to make the platform a base for sports programming. Hypothetically, independent networks like The Tennis Channel could be added to improve the offering, one of the people said. While Disney, Warner Bros. Discovery and Fox will each own a third of the company, the sharing of copyright revenue will be proportional to what cable networks charge pay-TV providers, a second person said.
“The launch of this new sports streaming service is a significant moment for Disney and ESPN, a huge win for sports fans and a major step forward for the media business,” said Disney CEO Bob Iger, in a statement. “This means ESPN's full suite of channels will be available to consumers alongside sports programming from other industry leaders as part of a differentiated sports-focused service.”
The product launch will not prevent ESPN from offering a full direct-to-consumer streaming product, which Disney is still investigating and is scheduled to debut in 2025, according to a person familiar with the matter. ESPN has previously said it plans to launch that product this year or next.
The competitors hope to form the joint service at a time when the value of sports media rights is rising but viewers have stopped watching on traditional cable.
ComcastNBCUniversal and Paramount Global were not approached about being part of the joint venture, according to people familiar with the matter. NBCUniversal probably would have opposed the idea of separating its sports networks from its other cable entertainment channels, one of the people said.
Still, the new slimmed-down package may reduce the number of cable subscribers for both NBCUniversal and Paramount Global. Both companies offer streaming services (Peacock and Paramount+) that offer additional sports, including live National Football League games. That may mitigate potential revenue losses for NBCUniversal and Paramount Global.
Disney, in particular, has looked for new ways to reinvent the sports business and ESPN, including seeking strategic partners like the National Football League and the National Basketball League.
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