ESPN, Fox and Warner Bros. Discovery to launch joint sports streaming platform this year

Walt
Disney‘s
ESPN,


Fox
and


Warner
Bros.
Discovery
plan
to
launch
a
joint
sports
streaming
service
this
fall,
giving
consumers
a
new
way
to
access
marquee
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
a
price.
Disney,
Fox
and
Warner
Bros.
Discovery
will
each
own
a
one-third
stake.

Consumers
would
be
able
to
subscribe
directly
via
a
new
app.
Subscribers
would
also
have
the
ability
to
bundle
the
product
with
the
companies’
streaming
platforms
Disney+,
Hulu
and
Max.

The
product
will
be
a
skinnier
bundle
of
linear
networks
than
a
standard
cable
offering,
specifically
tailored
for
sports
fans.
It
will
consist
of
all
the
broadcast
and
cable
networks
owned
by
Disney,
Fox
and
Warner
Bros.
Discovery
that
carry
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’s
networks
that
showcase
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
introductory
pricing
lower
to
entice
signups,
according
to
a
person
familiar
with
the
matter,
who
asked
not
to
be
named
because
the
discussions
around
the
service
have
been
private.
A
second
person
added
that
even
with
promotional
pricing,
the
service
will
cost
more
than
$30
per
month.

The
companies’
longer
term
goal
is
to
make
the
platform
a
home
base
for
sports
programming.
Hypothetically,
independent
networks
such
as
The
Tennis
Channel
could
be
added
to
improve
the
offering,
one
of
the
people
said.
While
Disney,
Warner
Bros.
Discovery
and
Fox
each
will
own
one-third
of
the
company,
the
rights
fee
revenue
sharing
will
be
proportional
to
what
the
cable
networks
charge
pay
TV
providers,
a
second
person
said.

“The
launch
of
this
new
streaming
sports
service
is
a
significant
moment
for
Disney
and
ESPN,
a
major
win
for
sports
fans,
and
an
important
step
forward
for
the
media
business,”
Disney
CEO
Bob
Iger
said
in
a
statement.
“This
means
the
full
suite
of
ESPN
channels
will
be
available
to
consumers
alongside
the
sports
programming
of
other
industry
leaders
as
part
of
a
differentiated
sports-centric
service.”

The
launch
of
the
product
will
not
stop
ESPN
from
offering
a
full
direct-to-consumer
streaming
product,
which
Disney
is
still
researching
and
remains
on
schedule
to
debut
by
2025,
according
to
a
person
familiar
with
the
matter.
ESPN
has
previously
said
it
plans
on
releasing
that
product
this
year
or
next
year.

The
competitors
expect
to
form
the
joint
service
at
a
time
when
the
value
of
sports
media
rights
is
spiking
and
viewers
have
moved
away
from
watching
on
traditional
cable
even
as
ratings
for
the

National
Football
League
and

National
Basketball
Association
have
spiked.

“While
we
look
forward
to
learning
more
about
this
new
venture,
we’re
encouraged
by
the
opportunity
to
make
premier
sports
content
more
accessible
to
fans
who
are
not
subscribers
to
the
traditional
cable
or
satellite
bundle,”
an
NBA
spokesperson
said.

Comcast‘s
NBCUniversal
and
Paramount
Global
weren’t
approached
to
be
a
part
of
the
joint
venture,
according
to
people
familiar
with
the
matter.
NBCUniversal
likely
would
have
balked
at
the
idea
of
unbundling
its
sports
networks
from
its
other
entertainment
cable
channels,
one
of
the
people
said.

Still,
the
new
skinny
bundle
may
chip
away
at
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

sought
new
ways
to
reinvent
the
sports
business
and
ESPN,
including
searching
for
strategic
partners
such
as
the
National
Football
League
and
the
National
Basketball
League.

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