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In a major move for streaming television, three of the largest media companies are teaming up to create a joint venture that will offer access to all major league sports and several others.
disney ESPN, Fox Corp.’s Fox Sports and TNT, Warner Bros. Discovery’s TBS and other networks will offer a comprehensive package this fall that includes games from the NFL, NBA, MLB and NHL. You won’t be able to watch every game, but it’s an attractive package for cord cutters and sports fans.
Each company will own one-third of the service, which does not yet have a name, pricing information or specific launch date, and is subject to finalizing agreements. But it’s further acknowledgment of the fragmentation of the cable package as more consumers gravitate toward streaming. NFL games consistently top the Nielsen ratings, and for several years professional sports have led live programming as key to preserving the cable television ecosystem, which has lost more than 25% of its subscriber base in the past few years. last years.
The new service will also have its own management team independent of its owners, the companies said in a statement.
Analyst Michael Nathanson of MoffettNathanson called the deal the “broadcasting package we’ve been waiting for” and said in a report Tuesday that it marked “the definitive move to take ownership of its own sports destinations, relinquishing its reliance on the current distribution system.” “. “.
“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. , it’s a statement. Disney has been mulling plans to create a standalone ESPN streaming service (the current ESPN+ lacks rights to major sports), and the new deal doesn’t appear to prevent it from doing so in the future.
“We are excited to bring the Fox Sports portfolio to this exciting new platform,” Fox CEO Lachlan Murdoch said in a statement. “We believe the service will provide passionate fans outside the traditional package with a variety of incredible sports content, all in one place.”
YouTube already offers the NFL’s Sunday Ticket package, which streams out-of-market games to YouTube Live TV subscribers for about $200 extra per season, depending on discounts. But subscribers can’t see their local teams.
What sports are included in the new sports streaming service?
In addition to the Big 4 (NFL, NBA, MLB and NHL), the service will include NASCAR auto racing, UFC, PGA Tour golf, Grand Slam tennis, the FIFA World Cup and several college sports, among others.
What channels will appear on the sports streaming service?
Subscribers will have access to all broadcast and cable channels owned by each of the companies that offer sports: For Disney, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS and ABC. For Fox Corp., Fox, FS1, FS2 and Big 10 Network. And for Warner Bros. Discovery, TNT, TBS, truTV. Disney’s ESPN+, an independent streaming service with 26 million subscribers, will also be part of the new entity, although it lacks rights to major sports and often comes bundled with Disney+ and Hulu. Not included: Paramount Global’s CBS Sports, which broadcasts most NFL AFC conference games, and Comcast, whose NBC network carries “Sunday Night Football” and owns the No. 2 cable system. Both already stream their NFL games on Paramount+ and Peacock, respectively, while the new joint venture partners do not.
How much will the streaming service cost?
The companies have not announced any pricing plans, but said the new service will be offered in bundles with the existing streaming services they own, including Max, Disney+ and Hulu. Fox does not currently have any subscription-based services.
Will the new service have commercials?
Of course! Advertising revenue, along with subscription revenue, is key to securing profits as sports rights grow. Other streamers that carry sports, such as Amazon Prime (“Thursday Night Football”) and Apple TV+ (Friday Night MLB games and Major League Soccer) have included commercials even when the rest of their programming has not.
Will cable television systems suffer?
Definitely. The ability to stream major sports all in one place topples one of cable’s last major pillars, eliminating one of the last reasons to pay hefty monthly fees to buy a package of channels that many subscribers don’t watch. But the growing number of streaming services can also approach the cost of cable when purchased separately.
You’ll still need a broadcast cable or antenna to watch news coverage, local stations, syndicated programming, and some entertainment programs, such as award shows, that are not broadcast live.
