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Walt Disney's ESPN, Fox, and Warner Bros. Discovery have announced their plan to launch a joint sports streaming service this fall. This collaboration will give consumers a new way to access marquee live sports, marking a significant breakthrough in the industry.
Platform Ownership and Pricing
Reuters noted that the newly formed company, which will own the platform, has not yet been named. However, Disney, Fox, and Warner Bros. Discovery will each hold a one-third stake in the venture.
The pricing details are yet to be disclosed, but consumers can subscribe directly through a new app. Additionally, subscribers can bundle the product with existing streaming platforms such as Disney+, Hulu, and Max.
Although the exact pricing has not been determined, industry insiders suggest a logical starting point of $45 to $50 per month, with potentially lower introductory pricing to attract early sign-ups. The long-term goal is to make the platform a comprehensive hub for sports programming. Adding independent networks like The Tennis Channel could enhance the overall offering.
CNBC reported that the revenue sharing for rights fees would be proportional to what the cable networks charge pay-TV providers. This ensures a fair distribution of revenue among the stakeholders.
The joint sports streaming service aims to offer a skinnier bundle of linear networks specifically curated for sports enthusiasts. It will include all the broadcast and cable networks owned by Disney, Fox, and Warner Bros. Discovery that carry sports content, along with ESPN+.
Disney's contribution to the platform encompasses ESPN and its sister networks, including ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and the ABC broadcast network. Warner Bros. Discovery will provide TNT, TBS, and TruTV, while Fox will contribute to the Fox broadcast stations FS1, FS2, and BTN.
Future Direct-to-Consumer Streaming Product
The launch of the joint sports streaming service does not signal the end of ESPN's plans for a full direct-to-consumer streaming product. Disney is still actively researching and remains on track to debut its independent streaming service by 2025.
It is worth noting that Comcast's NBCUniversal and Paramount Global were not approached to join this joint venture. Industry insiders speculate that NBCUniversal may have hesitated due to concerns about unbundling its sports networks from other entertainment cable channels.
This joint endeavor between Disney, Fox, and Warner Bros. Discovery promises to revolutionize the sports streaming landscape, providing consumers with a comprehensive and tailored offering for their sports viewing needs.
Photo: ESPN Press Room
