New Sports Streaming JV Will Cost Around $40 a Month, Disney Will Control Half of the Economics, Analyst Predicts (Charts of the Day)

By Daniel Frankel
( NextTV )
published

Under pay TV's New World Order, sports lovers will pay around $60 a month for a bundle of the new Disney/WBD/Fox platform, Peacock and Paramount Plus, Wells Fargo's Steven Cahall forecasts

NBA In-Season Tournament
(Image credit: Getty Images)

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. 

Also read: Why ‘Re-Bundling Has To Happen’: Breaking Down the New ESPN, TNT Sports and Fox Sports Streaming JV

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. 

(Image credit: Wells Fargo Securities)

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. 

(Image credit: Wells Fargo Securities)
Daniel Frankel
Daniel Frankel

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!