Disney, WBD, Fox join forces to set up bumper sports streamer in US

L-R: Bob Iger, David Zaslav and Lachlan Murdoch

US media giants The Walt Disney Company (TWDC), Warner Bros Discovery (WBD) and Fox are partnering to launch a sports-focused streaming service in the US.

The joint-venture streamer, set to launch this fall, will bundle sports content from linear networks such as Disney’s ESPN and ABC, WBD’s TNT, TBS and truTV, Fox’s main network, FS1 and FS2, in addition to ESPN+.

The companies said on Tuesday they had “reached an understanding on principal terms” to form the subscription service, with each company owning one-third of the as-yet-unnamed business and licensing sports content to it on a non-exclusive basis.

The JV will have a separate management team and all three companies will have equal board representation. The firms have not yet said how much the service will cost or named the executive team.

The partnership will bring together most sports rights available in the US, including various rights to the NFL, NBA, MLB, NHL, PGA Tour golf, three of the four Grand Slam tennis tournaments, the FIFA World Cup, UFC, Formula 1 and NASCAR.

As consumers have migrated away from appointment TV viewing, sport is the last form of programming that can guarantee to draw mass audiences at a scheduled time.

That fact, coupled with the entry of tech giants including YouTube, Amazon, Apple and, most recently, Netflix to the live entertainment fray has caused the cost of sports rights to balloon.

This joint venture sees Disney, Fox and WBD launching a counterattack of sorts against the tech giants, with Disney CEO Bob Iger calling it a “significant moment” for the company, a “major win for sports fans” and an “important step forward for the media business.”

Fox executive chair and CEO Lachlan Murdoch added: “We’re pumped to bring the Fox Sports portfolio to this new and exciting platform. We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place.”

WBD CEO David Zaslav added: “At WBD, our ambition is always to connect our leading content and brands with as many viewers as possible, and this exciting joint venture and the unparalleled combination of marquee sports rights and access to the greatest sporting events in the world allows us to do just that.”