In a collaborative move, Fox Corp, Walt Disney’s ESPN, and Warner Bros Discovery revealed plans on February 6 to launch a sports streaming service later this autumn, Reuters reported. The objective is to engage a younger audience not tuned in to traditional television.
The media conglomerates will establish a joint venture to leverage their vast professional and collegiate sports rights portfolio. These encompass the National Football League, the National Basketball League, Major League Baseball, the FIFA World Cup, and college competitions.
The upcoming service, yet to be named, will offer a comprehensive package featuring television channels such as ESPN, TNT, and FS1, alongside streamed sports content. Subscribers will have the option to include it in a streaming bundle from Disney, Hulu, or Max.
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Disney CEO Bob Iger stated, “This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other leaders.”
Maintaining Choice, Not Replacing Existing Networks
Contrary to replacing flagship networks like Disney‘s ESPN or Fox’s FS1, the sports-centric service aims to give consumers more choices, insiders told Reuters.
CEOs of the involved companies have been discussing collaboration for some time. Fox Chief Executive Lachlan Murdoch commented, “We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place.”
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The new entity will be jointly owned by Fox, Disney, and Warner Bros Discovery, with equal board representation. The agreement includes licensing sports content on a non-exclusive basis. An independent management team will oversee operations.
Tapping into the Growing Sports Market
The sports-centric service recognizes the expanding market for sports beyond traditional TV. It aims to capitalize on this opportunity, providing an additional avenue for media companies to monetize sports rights.
Warner Bros Discovery CEO David Zaslav stated, “This new sports service exemplifies our ability as an industry to drive innovation and provide consumers with more choice, enjoyment, and value.”
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Last year, Disney CEO Bob Iger indicated a desire to keep ESPN while seeking strategic partners and investors for its online transition. Activist investor Nelson Peltz believes bundling ESPN with a larger sports-interested player can lead to profitability in Disney’s streaming efforts, according to media reports from last month.
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Published: 07 Feb 2024, 06:31 AM IST