- Disney, Fox, and Warner Bros. Discovery are partnering to launch a sports streaming service.
- This is not secondary content like ESPN+. That's the biggest one.
- If that happens, cable TV may go bankrupt.
Disney, Fox and Warner Bros. Discovery are preparing to launch an “all-in-one premier” sports streaming service that will bring most of cable TV's marquee sports direct to consumer.
The companies will own one-third of the new joint venture, which is expected to launch later this year.
According to a press release, “With a subscription, fans can now access linear sports networks including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, and more. It will be ESPN+.”
This service doesn't have “everything”.
There are still sports programs that are not listed. For example, NFL games are broadcast on TV, although CBS and NBC are not participating. So all you really need is a digital antenna and you can watch for free. The streaming services Peacock and Paramount+ also carry some sports. That being said, this new service includes most of the major sports offered on cable TV. However, it's good to note that many people access broadcast channels through their cable packages, which may be a bridge too far to buy for most people (and the NFL on CBS and NBC). Use a digital antenna for gaming.
There are some things we don't know yet. The price is great. But if it's reasonably priced, and it's hard to see why they wouldn't, given the stakes are this big for these companies, it really poses an existential threat to cable TV. .
Cord cutting has been slowly eroding the cable TV ecosystem for years. If it is slow, it is a medium that appears at the end of its life and declines.
With the rise of streaming services like Netflix, entertainment programming such as dramas and comedies has begun to move into the on-demand, unbundled world. Basically, all of your favorite TV shows are available for streaming.
But sports and news have locked many viewers into this bundle. Now, with this new streaming service, at least some sports fans may feel comfortable cutting the cord completely (especially if a digital antenna works).
The lack of sports fans is itself a bad thing. But the situation is made worse by the fact that cable news, another pillar of live and bundled programming, has no interest in young people.
The median age of viewers who watched cable news last year was 67 for CNN, 68 for Fox News and 71 for MSNBC, according to data from S&P Global Market Intelligence. In terms of average age, it can be summed up in one word: old. And it's hard to see how cable news can meaningfully reverse that trend. Talk to the young people around you. they are not interested.
All of this could mean that cord-cutting accelerates in the coming years into a real death spiral.
But don't cry too much for your cable company just yet.
Last year, in a dispute with Disney, Charter, one of the largest cable companies in the United States, argued that the cable TV model was broken and said it was prepared to exit completely. Charter and other cable giants have been preparing for this future for a long time and have plans. They just keep selling on the internet. It's better business anyway.
