With Fox and Disney reporting Q4/full-2023 earnings Wednesday, media watchers are anticipating some details (pricing, launch date, etc.) regarding Tuesday's announcement of a major sports streaming joint venture.
Based on Fox's early morning earnings report, we might not end up getting much info today.
But Wells Fargo Securities analyst Steven Cahall had some interesting predictions that he shared in an investor note.
For starters, Cahall is in line with most analysts on the bundle's price, pegging it at $40 a month. He believes that many sports fans will complement the service with Peacock and Paramount Plus, which provide more sports plus live NBC and CBS broadcast feeds, respectively. This bundle would provide the vast majority of linear channels featuring major sports league live telecast and run around $58 a month.
Meanwhile, Disney, Fox and Warner Bros. Discovery have described their JV as an equal measure of 33.333% ownership stakes. But Cahall thinks Disney will control half the economics, simply because its channels supply 52% of the revenue, and conglomerate pays 56% of rights fees to the leagues.
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Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!