- Written by Mariko Oi
- business reporter
image source, Getty Images
Kansas City Chiefs' Patrick Mahomes and Travis Kelce
Three major US media companies have announced that they will launch new sports streaming platforms in the fall.
Walt Disney's ESPN, Fox Corporation and Warner Bros. Discovery own a broad portfolio of sports rights, including the FIFA World Cup, Formula 1 and the National Football League.
They want to reach a younger audience and save money.
The service will have a “new branding with an independent management team” and will be available through a new app.
Pricing will be announced at a later date, their statement said.
Both companies will own one-third of the joint venture, with equal representation on the board of directors.
The announcement comes as sports leagues pay higher broadcast rights fees.
Increasingly, fees are being split between multiple media distributors rather than just linear TV operators.
According to the announcement, the product will combine Sports Linear Network with Disney's direct-to-consumer ESPN+.
They added that the new joint venture aims to “serve sports fans, particularly sports fans outside of traditional pay-TV bundles.”
Subscribers can also bundle the product with the company's streaming platforms Disney+, Hulu, and Max.
Walt Disney CEO Bob Iger called the launch “a huge win for sports fans and an important step forward for the media business.”
Fox president Lachlan Murdoch said the service “brings together an incredible array of sports content in one place,” and Warner Bros. Discovery CEO David Zaslav said the service “will drive innovation. “This is a testament to our ability as an industry to deliver.” Consumers have more choice and enjoyment. ”
Streaming services have grown in popularity in recent years, forcing traditional media companies to make quick investments to compete with the likes of Netflix, Amazon Video, and Apple TV.
