An expert's guide to ESPN, Fox and Warner Bros. Discovery's new sports streaming joint venture
Feb 14, 2024
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Patrick Crakes, a sports media expert and former long-time Fox executive, joins SportsPro CEO Nick Meacham to discuss the significance of ESPN, Fox, and Warner Bros. Discovery's joint venture in the US media landscape. They explore the impact on stakeholders, the economics of the streaming product, competitors' reactions, and potential risks.
ESPN, Fox, and Warner Bros. Discovery's joint venture aims to create a new platform offering premium live sports content.
The joint venture between ESPN, Fox, and Warner Bros. Discovery may lead to downward pressure on media rights values and the need for sophisticated approaches in securing and monetizing rights.
Deep dives
Transition from Military to Fox Sports
The podcast episode features a guest, Pat Crakes, discussing his transition from the military to working at Fox Sports. He highlights his time in the army, going to college, joining a fraternity, and eventually starting his media career at Fox Sports. The transition was made easier by his military background, and he emphasizes the importance of laying a foundation through education and gaining valuable experience.
Joint Venture between ESPN, Disney, Warner Brothers Discovery, and TNT Sports
The podcast delves into a major announcement in the sports media landscape: a joint venture between ESPN, Disney, Warner Brothers Discovery, and TNT Sports. The partnership aims to create a new platform, combining their strengths and offering premium live sports content. They bring different business models to the table, with ESPN offering a wide range of sports channels, Fox Sports adding its programming, and TNT Sports contributing with additional content. The joint venture intends to offer an extensive range of linear channels and streaming services, such as ESPN Plus, to attract a broad audience.
Challenges in Rights Bidding and Pricing
The podcast explores the challenges faced in the bidding and pricing of sports media rights. It highlights the complex nature of the media rights marketplace and the need for more sophisticated approaches in securing and monetizing rights. The discussion suggests that the joint venture between ESPN, Disney, Warner Brothers Discovery, and TNT Sports is a step towards stabilizing revenues and finding ways to offer bundled content to consumers. It also addresses potential downward pressure on media rights values and the role of gaming revenue in offsetting any declines.
Complexity and Risks in the Joint Venture
The podcast delves into the complexity and potential risks involved in the joint venture. It discusses the challenges of agreement and decision-making among the CEOs and leaders of the participating companies. The podcast also raises points about marketing, branding, pricing, and technology as key areas that require careful attention in order to establish a successful platform. Additionally, it emphasizes the importance of defining success metrics and exit strategies in case the venture proves to be highly successful or unsuccessful.
ESPN, Fox and Warner Bros. Discovery's recently announced sports streaming joint venture looks like a game changer for the US media landscape. Sports media expert and former long-time Fox executive Patrick Crakes joins SportsPro CEO Nick Meacham to break down what it all means.
Talking points:
How significant is this announcement? (3:40)
How will this impact each of the stakeholders? (14:29)
The economics of the new streaming product (20:40)
How will the competitors react? (28:36)
The potential risks (36:35)
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