Will the New All-in-One Sports App Finally Kill Cable?
Feb 8, 2024
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Sports business journalist and Puck contributor John Ourand joins host Matt Belloni to discuss the new all-in-one sports streaming platform, its impact on linear cable, stakeholder implications, and revenue potential. They also make Super Bowl predictions and discuss betting options.
The collaboration between major media companies to create a super sports streaming service raises concerns about the future of the cable bundle and traditional TV networks.
The new sports streaming service aims to attract cord-cutters and provide a viable option for sports fans without cable packages, but its success depends on maintaining a balance between attracting cord-nevers and securing the existing cable bundle.
Deep dives
Disney, Warner Brothers, Discovery, and Fox team up to create a super streaming service for sports in the US
Disney, Warner Brothers, Discovery, and Fox are collaborating to launch a new streaming service for sports in the US. The service will combine ESPN, Turner Networks, and Fox, offering a single platform for various sports content. The arrangement aims to attract cord-cutters and provide a viable option for sports fans without cable packages. The new service is set to include national live TV rights for major sports leagues like the NBA, MLB, NHL, and NFL, excluding CBS and NBC sports. The pricing and ownership structure are yet to be disclosed, with the service expected to launch this fall.
The potential impact of the sports streaming service on the cable bundle and traditional TV networks
The collaboration between major media companies to create a super sports streaming service raises questions about the future of the cable bundle and traditional TV networks. The streaming service is aimed at attracting cord-nevers, individuals who prefer not to subscribe to cable packages. However, there is concern among network executives that the success of the streaming service may hasten the decline of the cable bundle, which has been a stronghold for sports programming. The partnership seeks to offer a compelling alternative for sports fans, but not at the expense of undermining the traditional cable model. The pricing strategy of the service and the ability to bundle it with other streaming platforms will play a crucial role in determining its success.
Key winners, losers, and potential challenges of the streaming service
The potential winners of this collaboration include consumers who may gain a comprehensive sports offering in one place. Fox is considered a winner as it joins the venture after previously avoiding the risks associated with creating its own streaming service. Other winners could be streaming giants like Netflix and Amazon, as the streaming service may expedite the decline of the cable bundle. On the other hand, traditional TV networks such as CBS and NBC, not involved in the partnership, may face challenges as viewers may prefer the new streaming service for sports content. The streaming service's success depends on striking a balance between attracting cord-nevers and securing the existing cable bundle, as well as addressing potential conflicts among the partnering media companies with different agendas.
Matt is joined by sports business journalist and Puck contributor John Ourand to discuss ESPN, Fox, and Warner Bros. Discovery teaming up to create a new over-the-top sports streaming platform that will air live sports from ESPN, TNT, FS1, and more. They discuss the dynamics of this deal, why this is happening, how it will affect the future of linear cable, potential drawbacks, and more. Matt finishes the show with a Super Bowl ratings prediction.
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