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ESPN, Warner Brothers, and Fox join forces to launch comprehensive sports streaming service in the U.S

Posted : 07 February 2024

In a significant move within the sports broadcasting industry, ESPN, Warner Brothers, and Fox are collaborating to launch a streaming service that will consolidate rights to sports broadcasts from major leagues globally.

 

Expected to commence operations by the end of the year, the service will encompass more than 55% of sports broadcasting rights in the U.S., presenting a formidable challenge to traditional cable television.

 

The platform will provide subscribers with access to a plethora of television networks owned by the three giants, including TNT, ESPN, and 1FS, showcasing premier sports leagues worldwide.

 

The joint venture aims to hasten the shift of consumers away from traditional cable TV, capitalizing on the growing popularity of streaming services. The pricing details for the service are yet to be disclosed, but expectations are that it will be more affordable than typical cable packages, which often exceed $100 per month.

 

This move reflects the changing dynamics in the sports broadcasting market, as major leagues that were once hesitant to embrace streaming services are now increasingly open to awarding broadcast rights to them.

 

While the collaboration marks a significant industry consolidation, it also introduces potential challenges and complexities, such as Disney's attempt to acquire Comcast, a current partner in the Hulu streaming service.

 

The streaming service will not have exclusive rights to all sports broadcasts, as some major events, like certain football games on Amazon Prime and exclusive NFL games on Peacock Streaming, remain outside its scope.

 

The move comes amid ongoing negotiations between ESPN, Warner Bros., and Discovery with the NBA for a new broadcast rights package, anticipated to be valued at around $78 billion over a decade, three times the current deal.

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