Unnamed American sports bundle streaming service

Last updated

Unnamed American sports bundle streaming service
Type of business Joint venture
Type of site
 OTT video streaming platform
Area servedUnited States
Owner
Key peoplePete Distad (CEO)
Current statusProposed

On February 6, 2024, the Walt Disney Company (via its majority-owned subsidiary ESPN Inc.), Fox Corporation (owner of Fox Sports), and Warner Bros. Discovery (WBD, owner of TNT Sports) announced plans to launch a joint venture, sports-focused streaming service in the United States. It is scheduled to launch by fall 2024, with each of the three partners owning one-third of the venture, subject to the negotiation of final contracts between them. [1] [2]

Contents

The service would bundle virtually all of the U.S. national sports broadcast rights controlled by the three companies in a single subscription, with limited entertainment and news content. It would be specifically targeted to cord-cutters and cord-nevers who do not currently subscribe to either a traditional cable or satellite TV package or an existing mainstream virtual MVPD such as YouTube TV. [3] The service would be available as a standalone product, or sold as part of a bundle with one of the companies' other streaming platforms like Disney+, Hulu, or Max. [4]

Branding

The initial announcement indicated the service would have a "new brand", though that brand was not identified immediately. Within the three companies, the project is known by the internal code name "Raptor". [5] In the absence of an announced name, several media analysts and news reports have used the shorthand names "Hulu for Sports" and "Spulu", both alluding to general entertainment streaming service Hulu and its original joint venture ownership structure. [6] [7] [8] [9]

A few days after the announcement, one report indicated that the partners were strongly considering the name "Hulu Sports", which would brand the service as an extension of Hulu (now controlled by Disney) despite having separate management. However, other names were still under consideration at that point. [10]

Content

The service is expected to function similarly to a virtual MVPD in that it will carry almost all of the three companies' English-language U.S. linear broadcast and cable channels that offer sports content, including local stations and affiliates of the ABC and Fox broadcast networks (subject to the participation of the affiliates' owners); [11] general sports channels ESPN, ESPN2, ESPNews, FS1, and FS2; college sports channels ACC Network, Big Ten Network, ESPNU, and SEC Network; and the three primary WBD cable networks that carry sports coverage: TBS, TNT, and TruTV. [12] It will also include access to the content of Disney's existing direct-to-consumer sports service ESPN+. [3]

The streaming service will provide access to the same sports events that are currently offered by the above-listed services, which as of February 2024 include the majority of national broadcasting rights to NBA, NHL, and MLB games, the College Football Playoff and almost all NCAA-organized championships, as well as select NFL matches, among many other properties. [13]

However, the service will not provide access to sports events controlled by regional sports networks, third-party streaming services such as Prime Video and Apple TV+, and other major traditional broadcasters, particularly Paramount Global (owner of CBS and Paramount+) and NBCUniversal (owner of NBC and Peacock). [13] Moreover, Paramount and NBCUniversal were not invited to participate in the venture. [3]

The companies have stated that all programming will be offered on a non-exclusive basis, as the channels and content will continue to be made available through existing TV providers and/or the companies' respective standalone services. [4] In March 2024, an executive with Nexstar Media Group said independent broadcasters who own ABC and Fox network affiliates will be paid for distribution of their channels on the platform, which will be on an "opt-in" basis, suggesting some parts of the country might not have access to their ABC and/or Fox affiliate at launch. [11]

While subscribers will be able to watch any entertainment and news programming that regularly airs on these channels in addition to sports, the service will not carry other channels owned by these companies that are typically included in cable bundles, such as CNN or Fox News. [1] However, in situations where sports broadcasts are carried by the companies' other channels, those channels may be carried temporarily as "pop-up channels", using a concept that is common in Europe but relatively rare in the United States. [10]

Distribution

The service will be available individually through a new bespoke app, or as part of a bundle with Disney+, Hulu, and/or Max. [4]

As of February 2024, pricing for the service has not yet been announced, however reports have indicated that the regular price per month would be higher than US$30, and likely at least $45. [3] [13]

The service will be overseen by a separate management team at arms-length from the three partners. [13] On March 15, 2024, the partners announced that former Apple and Hulu executive Pete Distad would serve as the service's first CEO. [14]

The formation of the joint venture will not, according to the companies, affect their respective plans to compete with each other for sports broadcast rights going forward, nor will the joint-venture service seek any exclusive rights of its own. [13] Because of this, as well as the statement that all content will continue to be available through other platforms, many analysts initially indicated they did not expect the formation of the venture to raise antitrust concerns. [15]

Nonetheless, traditional cable and satellite providers are reviewing the plans in regards to whether they may violate most favored nation clauses in existing contracts, unless they are allowed to also start offering lower-priced sports-focused packages. Analysts noted that some of these providers have been "begging for the right" to offer cheaper sports packages for years, but have been blocked by programmers like Disney, Fox and WBD. [2] The United States Department of Justice also stated that it plans to review the terms of the joint venture once it is finalized. [16]

The existing sports-focused vMVPD FuboTV also expressed concerns following the announcement about the venture's impact on "fair market competition". [15] On February 20, FuboTV filed an antitrust lawsuit in the U.S. District Court for the Southern District of New York, seeking either to block the venture entirely, or for the court to alternatively impose economic and licensing restrictions. [17] Satellite TV providers DirecTV and Dish Network both filed briefs in support of Fubo's suit in April. [5]

Rep. Jerry Nadler, the ranking member of the United States House Committee on the Judiciary, and Rep. Joaquin Castro submitted a letter to Disney, Fox, and Warner Bros. on April 16 seeking answers on the impact the new service would have on competition and pricing. The owners were given two weeks from the letter's date to respond. [18]

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References

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  2. 1 2 Sherman, Alex (February 15, 2024). "Pay TV distributors may be planning their attack against new sports joint venture". CNBC. Archived from the original on February 15, 2024. Retrieved February 16, 2024.
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  5. 1 2 Manfredi, Lucas (April 11, 2024). "DirecTV, Dish Network Back Fubo in Disney-Fox-WBD Sports Streaming Legal Fight". TheWrap . Archived from the original on April 11, 2024. Retrieved April 12, 2024.
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  14. ↑ White, Peter (March 15, 2024). "Pete Distad Named CEO Of Disney, Fox & Warner Bros. Discovery's Sports Streaming Service". Deadline Hollywood . Archived from the original on March 15, 2024. Retrieved March 15, 2024.
  15. 1 2 Hayes, Dade (February 7, 2024). "Streaming Pay-TV Service Fubo, After Its Stock Tumbles 23%, Blasts New Disney-Fox-WBD Sports Bundle: "Every Consumer In America Should Be Concerned"". Deadline Hollywood . Archived from the original on February 7, 2024. Retrieved February 8, 2024.
  16. ↑ Nylen, Leah; Shields, Todd (February 15, 2024). "Disney-Fox-Warner Streaming Deal Faces DOJ Antitrust Review". Bloomberg News. Archived from the original on February 15, 2024. Retrieved February 16, 2024.
  17. ↑ Spangler, Todd (February 20, 2024). "Fubo Sues Disney, Fox and Warner Bros. Discovery Over Their Planned Sports Streaming Venture, Alleging It Violates Antitrust Law". Variety . Archived from the original on February 20, 2024. Retrieved February 21, 2024.
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