Disney's Sports Streaming JV Will Help 'Collect Lost Revenue From Cord Cutters,' Analyst Says
Portfolio Pulse from Chris Katje
Disney, Warner Bros. Discovery, and Fox Corporation are forming a sports streaming joint venture to offer a comprehensive lineup of sports content, including ESPN and other major channels. This move aims to recapture revenues lost to cord-cutting by leveraging their control of approximately 85% of U.S. sports rights. Despite Disney's streaming services reporting a $1.6 billion loss in the first nine months of 2023, this partnership is seen as a strategic effort to improve profitability and market position. The platform is expected to launch in fall 2024, pending definitive agreements.
February 07, 2024 | 4:18 pm
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POSITIVE IMPACT
Disney's new sports streaming JV with Warner Bros. Discovery and Fox Corporation aims to offset losses from cord-cutting and improve its streaming segment's profitability. Despite a $1.6 billion loss in streaming in 2023, this partnership could enhance Disney's market position.
The joint venture directly addresses Disney's challenges with cord-cutting and streaming profitability. By partnering with Warner Bros. Discovery and Fox, Disney aims to leverage its extensive sports rights and content to attract more subscribers and improve financial performance.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Fox Corporation's role in the sports streaming JV with Disney and Warner Bros. Discovery could bolster its streaming offerings and market presence by contributing to a platform that controls a significant portion of U.S. sports rights.
Fox Corporation's participation in the joint venture is expected to strengthen its streaming service offerings and market position by leveraging its sports content and rights in collaboration with Disney and Warner Bros. Discovery.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Warner Bros. Discovery's partnership with Disney and Fox Corporation in a sports streaming JV could significantly impact its position in the streaming market by offering a vast array of sports content.
Warner Bros. Discovery's involvement in the joint venture with Disney and Fox enhances its content offering and market reach in the sports streaming domain, potentially improving its competitive stance and financial outcomes.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 80