Disney, FOX, and Warner Bros. Discovery announced this week that they would be collaborating to develop a new TV streaming service this autumn that would be centered around sports.
There would be 14 live sports channels available with this service, including TNT, ESPN, BTN, and FOX Sports, to mention a few. It would take care of a major grievance people have with streaming services: having to move between applications in order to view every game.
Local TV stations are now commenting on this new idea, making it apparent that they will receive payment for the local games that are streamed on it as well. Gray Television has made it plain in a statement that it expects Disney, FOX, and Warner Bros. Discovery to fund the cost of any games that are aired on regional TV stations. “Gray supports any initiative that broadens local broadcasting stations’ audience, as this helps local stations continue to run dependable local news operations that are beneficial to all.”
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Local TV stations have used the same defense of upholding reliable local news to categorize streaming services as cable TV. Paying local stations to continue providing reliable local news is ultimately necessary.
The complete statement from Gray Television is as follows:
The potential launch of a new live streaming service from Disney, FOX, and WBD that would include the live signals of the local affiliates of the ABC and FOX broadcast networks owned by local broadcasters such as Gray as well as those companies’ sports-focused cable channels could be a significant opportunity to expand the pay-TV ecosystem.
Local affiliated stations not only carry nationally televised sports but also provide local sports coverage, local news and weather, local jobs, and extensive community service. We believe that including ABC and FOX stations in a new virtual multichannel video programming service could offer benefits to viewers, their local communities, and local broadcasters. Local affiliates and their audiences could also benefit if the venture provides additional resources and scale that enables the venture to compete successfully and expand the sports programming available on the ABC and FOX broadcast networks and the affiliates of those networks.
Finally, we understand that the proposed new streaming service is expected to target sports fans who do not currently subscribe to a pay-TV package, complementing the wider programming offerings available from existing pay-TV providers. Gray welcomes any venture that expands the reach of local broadcasting stations, which in turn supports the ability of local stations to maintain trusted local news operations that benefit everyone.
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Fubo has also expressed doubts about the intentions behind this new service. It makes sense that Fubo could be concerned that this new joint venture might undercut them given the heavy emphasis on sports streaming that Fubo and other streaming services have placed on the platform. Furthermore, it eliminates the intermediary expenses associated with a service such as Fubo, which could lead to a lower price point. Finally, in order to obtain ESPN, most businesses, like Disney, require you to carry a lot of other channels. Disney will now begin selling it straight to customers without the large bundle.
To oppose this proposed streaming service, look for local TV stations, cable TV providers, and other streaming services. The issue currently is the power they have over Warner Bros. Discovery, Disney, and FOX should the businesses begin selling straight to customers.
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