Disney, Fox, Warner Bros Discovery to launch joint sports streaming platform

Mega deal: Fox Corp, Walt Disney's ESPN, and Warner Bros Discovery announced their plans to introduce a sports streaming service later this fall, targeting younger audiences who have shifted away from traditional television viewing.

The collaboration among these media giants will result in a joint venture aimed at curating a new service featuring a diverse range of professional and collegiate sports rights. 

These rights include coverage of major leagues such as the NFL, NBA, MLB, FIFA World Cup, and various college competitions.

The upcoming service, yet to be named, will offer a comprehensive package of programming, including television channels like ESPN, TNT, and FS1, alongside streamed sports content. Subscribers will also have the option to include the service as part of their streaming bundle from Disney+, Hulu, or Max.

Disney CEO Bob Iger said, "This means the full suite of ESPN channels will be available to consumers alongside the sports programming of other leaders."

Media analyst Michael J Wolf of Activate Consulting noted that the venture targets the 40 million households in the US with high-speed internet access but no pay TV subscription. 

The all-sports digital offering is also expected to attract interest from aggregators like Amazon, Apple, and Roku.

Former Disney executive Bernard Gershon lauded the move as a smart defensive strategy with major potential for growth, especially as cable television subscriptions decline. 

Live sports remain a powerful draw for audiences, whether on TV or online, as demonstrated by NBCUniversal's Peacock during last month's live streaming of the NFL's AFC wild card playoff game.

The CEOs of the involved companies have been in discussions regarding this collaboration for some time, viewing the service as complementary to existing sports networks rather than a replacement.

Fox Chief Executive Lachlan Murdoch expressed confidence in the service's ability to provide passionate fans with a diverse range of sports content in one convenient platform.

The joint venture will be equally owned by the three media companies, with a shared board representation and non-exclusive licensing of sports content. An independent management team will oversee its operations.

The initiative underscores the growing market for sports content outside traditional TV and provides another avenue for monetising expensive 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.”

Last year, Iger indicated Disney's commitment to ESPN and its exploration of strategic partnerships and investors as it transitions the network online. 

Activist investor Nelson Peltz has expressed confidence in Disney's streaming profitability, particularly with ESPN+, through bundling with potential partners interested in sports.

(With Reuters Inputs)