Why there's one big question about Fox, Warner Bros. Discovery, Disney streaming service

A potential “game-changer” in the streaming world came about Tuesday when Disney, Fox and Warner Bros. Discovery announced a joint service which launches later this year. The yet-to-be-named venture would focus on sports content and, essentially, be a “sports-streaming bundle,” according to the Wall Street Journal.

On the surface, it seems like a solid option for sports fans. All linear channels from the networks will be available on the platform as part of the agreement and they’ll be available on ESPN+, Hulu and Max. It also means multiple sports will have a strong presence on the network, most notably the NBA and NHL, which both have deals with ESPN and WBD – which owns TNT Sports. The NFL would also be part of the equation with its Fox games and Monday Night Football.

But there will also be a college sports presence. Disney is about to begin a landmark media deal with the SEC and owns the ESPN-operated SEC Network and ACC Network. The Big 12 will also have games on the service as part of its deals with ESPN and Fox, which owns the Big Ten Network. As a result, Big Ten fans will also see their teams on the service, including one game on Saturdays as part of the league’s rights deal.

With that, though, On3’s Andy Staples had one important question.

“Really, my only question is, what does this cost?” Staples said on Andy Staples On3. “What are you going to charge me for this? Because if I buy this, then all I need is Peacock and Paramount+ in addition to it, and I’ve got all the sports I need.”

Fox, WBD and Disney can’t ‘screw up the price point’

The new streaming service seems like it’d be exciting for sports fans. Because the three companies would be working together, all of their channels would be available in one spot. The ESPN family of networks would be there, as would ABC and ESPN+. Fox, FS1, FS2 and Big Ten Network would also be part of the package, along with the three Turner-owned stations – TNT, TBS and truTV.

For those like Staples, who don’t watch much other than sports through their TV provider, the bundle looks like a great option. That’s where the price is going to be especially important. If it can come in below the price of cable or a streaming service, he argued it has a chance.

It’s also quite the full-circle moment in the cord-cutting world.

“I’m fascinated by this because if they can beat the price, it’s probably going to work,” Staples said. “And it’s funny because we all kept saying this was going to happen. Like, cable broke up, but we have so many apps now, we need some place to have one place to get all of it – which is cable. And now, we have a chance to maybe do that again. So, again, don’t screw up the price point.

“That’s really all I’ve got to say because I think you have a good chance of making this work if you don’t, because I got 50-some channels I don’t use, 50-something channels I don’t need. So if you can give me sports for cheaper than what I’m paying for sports now, I think you got a shot.”

Partnering with Fox and Warner Bros. Discovery made sense for ESPN amid DTC push

The announcement comes as ESPN works through its direct to consumer plan. The goal for that launch is reportedly 2025, but the partnership with Fox and Warner Bros. Discovery doesn’t impact that plan at all, according to Disney CEO Bob Iger.

But joining forces with the other two companies adds to ESPN’s reach. While SEC fans would be happy with an ESPN-only service because it has the SEC Network and all football games under the new media deal, Big 12 fans would have to find a way to watch Fox broadcasts and Big Ten fans would need another service to watch all of their football games.

While Big Ten fans would have to turn to Paramount+ and Peacock to watch games on CBS and NBC, respectively, having the Fox-owned networks – including the Big Ten Network – is still part of the allure.

“But this is interesting because this is something ESPN, we’ve been wondering, how are they going to do this? How are they going to sell ESPN directly? … This is their way to do this without just selling ESPN, because I think if you just sold ESPN, you run into a problem,” Staples said. “And college football is part of your problem because you got very important Big Ten games on Fox, you got some Big 12 games on Fox, as well. And then you’ve got Big Ten games on CBS, you’ve got Big Ten games on NBC. So if you just sold ESPN, you’re not gonna get any of that.

“But if you give them the Fox games, which are pretty important, and then you give them some NBA that you get on the Turner networks – you get the NCAA Tournament the Turner networks – I think there’s a good chance, especially if you’re gonna give me a few bucks off of Hulu and Max and all the attached stuff, Disney+, because my kids love all those. So I’m going to have to have those. So if you can give me a few bucks off of those saving money on my cable, I’m feeling pretty good about that. But I want to see the price point. That’s the big thing right now. Show me the price point, and then we can talk.”