On Monday, Fox CEO Lachlan Murdoch stated that the sports streaming collaboration involving Walt Disney, Warner Bros Discovery, and Fox Corp aims to attract 5 million subscribers within its initial 5 years.
In the 2024 Morgan Stanley Technology, Media & Telecom Conference in San Francisco, Murdoch mentioned that the 5 million milestone is projected to be the stable point for the joint venture after five years. He emphasised that Fox Corp. anticipates the sports streaming initiative will complement its current pay-TV revenue.
He said, "We're running really hard and really fast to get the service up and running before the start of the college football season this year.”
New Venture: Sports-Centric
Murdoch also mentioned that pricing for the service, which will include rights to major sports leagues like the National Football League, the National Basketball Association, Major League Baseball, and college competitions, might exceed previous discussions.
This package is pro-consumer, according to Murdoch. He went on, "In the past, the television industry has made life for our audiences... extremely hard." The bulk of sports are combined into one bundle by this bundle. Sports fans can easily visit this location.
This unnamed joint venture, scheduled to launch in the fall of 2024 is aimed at younger audiences, focusing on sports-centric content. The joint venture intends to offer the sports package directly to consumers in the U.S. and as an optional add-on to platforms like Disney+, Hulu, and Max.
Although Murdoch did not disclose the cost of the sports-focused bundle yet to be named , which will significantly impact its adoption, analysts have estimated it to fall within the range of $35 to $50 per month.
Murdoch mentioned that the expected addressable market for the new venture ranges between 50 million and 60 million households, representing half of the television households in the United States who have opted out of traditional cable and satellite TV services. He emphasised the importance of sports as the primary driver of viewership and subscriptions.
Collaboration
The Fox media company recently revealed a partnership with Disney and Warner Bros. Discovery to develop a combined streaming platform merging ESPN+ and their linear TV networks featuring sports content.
According to Reuters' report last month, the new entity will be collectively owned by the three media companies, each having equal representation on the board. They have agreed to license their sports content non-exclusively, with media companies banking on the sports streaming service to boost subscriptions.
Murdoch stated that the companies will receive compensation based on the number of subscribers, expressing confidence in overcoming regulatory obstacles for the joint venture.
Rival Fubo Filed a lawsuit
Fubo, an internet pay-TV provider, is among the opponents of the companies' sports-streaming joint venture. Fubo has filed a federal lawsuit aiming to halt its launch, alleging that the venture breaches antitrust laws. Additionally, according to a Bloomberg report, the Justice Department intends to review the Disney-Fox-WBD venture for potential consumer harm.
Murdoch expressed confidence regarding regulatory hurdles for the sports streaming joint venture, stating he's "not overly concerned" and highlighting the extensive groundwork done. He explained that the venture will operate as a "vMVPD," similar to services like YouTube TV, Fubo, or Hulu + Live TV.
Fox Corporation
Regarding Fox Nation, the streaming-subscription platform associated with Fox News, Murdoch mentioned it has approximately 2 million customers, with subscriptions starting at $5.99 per month.
In the quarter ending on December 31, Fox Corp. experienced an 8.2% decline in revenue to $4.23 billion, primarily impacted by a 20% decrease in advertising sales. Net income also dropped by 65% to $109 million. The company's assets include Fox News, the Fox broadcast network, and Fox Sports.
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