From CNBC:

Media giants Disney, Warner Bros. Discovery, and Fox have announced a new sports-focused joint venture set to launch this fall. The service will cater to sports fans who don’t subscribe to traditional cable bundles, offering access to all networks owned by those companies carrying sports, alongside Disney’s ESPN+. The new venture’s impact on the industry remains uncertain. The pricing and potential audience for the service is also not yet known.

The joint venture represents a significant shift in the media landscape and carries potential consequences for traditional cable providers. The service is expected to disrupt cable TV, with an estimated price range between $45 and $50 per month, making it a cheaper alternative to traditional cable packages. While the motivation behind the venture is clear – driving streaming profits – it is unclear how the platform will be received by consumers, especially given the increasingly high cost of streaming services.

The new sports-focused joint venture poses potential threats to traditional pay TV operators, such as Comcast, Charter, and DirecTV, who could see a further decline in subscribers. It could also affect cable news networks like Fox News, CNN, MSNBC, and CNBC, as the focus on sports content could shift consumer viewing habits. Additionally, the launch of the new platform may prompt news networks to consider collaborative news bundles.

The joint venture is expected to benefit Disney, Warner Bros. Discovery, and Fox financially, with customers for the new platform continuing to pay for content from these companies. However, this move also presents risks for Warner Bros. and Disney, as it may prompt pay TV distributors to alter their contracts, threatening the profitability of certain channels. The joint venture could also create competition for Disney’s ESPN streaming service, potentially impacting its popularity.

The announcement of the joint venture is viewed as a strategic move by Warner Bros. CEO David Zaslav, partly motivated by competitive dynamics and a desire to assert influence in future merger discussions. The joint venture is a notable shift in the media landscape and could have lasting ramifications for the industry.



Read more: New sports streaming platform: What to know