Local FOX & ABC TV Stations Want to Get Paid for the New Sports Streaming Service from Disney, FOX, & Warner Bros. Discovery

In an exciting development for sports enthusiasts, Disney, FOX, and Warner Bros. Discovery have announced a groundbreaking partnership to revolutionize how we consume sports content. This collaboration aims to launch a new sports-focused TV streaming service boasting 14 live channels, including ESPN, BTN, FOX Sports, and TNT Sports. The service promises to streamline the viewing experience by consolidating various sports offerings into one platform, addressing a common gripe among streaming service users—the hassle of switching between multiple apps to catch all the action.

Local TV stations have entered the fray, advocating for compensation for the local games streamed on this new platform. Gray Television, for instance, underscores the importance of supporting local broadcasters, emphasizing their crucial role in delivering trusted local news and community services. They argue that including local affiliates in the streaming service would benefit viewers and communities and provide a significant opportunity to enhance the pay-TV ecosystem.

However, concerns have arisen from existing players in the streaming landscape, such as Fubo, who fear potential undercutting and disruption to their business models. With its heavy emphasis on sports streaming, Fubo is understandably wary of this new joint venture’s impact, particularly its potential to offer sports content at a lower cost by eliminating middleman expenses and unbundling services. Moreover, the direct sale of ESPN without a bundled package could further shake up the industry dynamics.

As this new streaming service prepares to launch, it’s anticipated that cable TV companies, other streaming services, and even local TV stations will push back against the disruption it poses to the traditional distribution model. The challenge lies in determining what leverage these entities have over the major players like Disney, FOX, and Warner Bros. Discovery, especially if these companies bypass intermediaries and reach consumers directly.

Rising Dough

How might the emergence of direct-to-consumer streaming services like the one proposed by Disney, FOX, and Warner Bros. Discovery impact the dynamics between content creators, distributors, and consumers in the entertainment industry?