In a blockbuster agreement that Disney CEO Bob Iger says is “an important step forward for the media business,” The Walt Disney Co., Fox Corp. and Warner Bros. Discovery will team up on a new company that combines streaming sports rights.
The untitled streaming platform will offer live linear channels like ESPN, ABC, Fox, TNT and TBS, and games and other sports rights from all three media giants on a nonexclusive basis (meaning they will still be able to launch their own offerings). The service will be available directly to consumers, but will also be available as a bundle with WBD’s Max, Disney’s ESPN+ and Hulu. Pricing is still TBD, but it is expected to launch in the fall, in time for the NFL season.
mportantly, we'll work within the framework that government, public health and regulatory bodies have established to communicate about reduced harm choices. And for any tobacco consumer who wants to quit, we offer access to a breadth of information from experts on how to do so successfully.
The actions we are taking will create a different Altria – and a different landscape that we believe will benefit today's adult tobacco consumers, our business and the thousands we employ.
That's why we're focused on Moving Beyond SmokingTM by providing more potentially reduced harm alternatives.
https://www.altria.com/moving-beyond-smoking?src=home-page-videoThe world’s biggest entertainment company admitted the superiority of Netflix Inc (NASDAQ: NFLX) on the streaming front. During an interview last week, The Walt Disney Company (NYSE: DIS) CEO Bob Iger admitted that despite the success of Disney+ in surpassing 100 million subscribers in a short period of time and now gathering 150 million, Disney is behind Netflix when it comes to technology. When it comes to streaming, Disney is at a disadvantage with higher marketing expenses, along with customer acquistion and retention costs due to not having the technological capabilities of Netflix.
Disney expects its streaming business that includes Disney+, Hulu and ESPN+ will reach the profitable shore by the end of the September fiscal quarter. However, the bigger picture is that streaming needs to grow to become a significant growth driver for the entertainment giant. Besides Disney+, Hulu is also an important part of the company’s streaming vision. Disney is in the process of finalizing its buyout of the 33% stake in Hulu from NBCUniversal. Despite not being global like Disney+, Hulu became a good brand with good content. There’s also ESPN+ with which Disney got sports covered. Last month, Disney made an agreement with Fox Corporation (NASDAQ: FOXA) and Warner Bros Discovery (NASDAQ: WBD) to put all their sports programming under a single broadband roof. According to Variety, Disney, Fox and WBD together control about 85% of the U.S. sports rights market. Together, Disney, Fox and Warner Bros will undoubtedly shake things up in the world of TV sports by concentrating their sports programs under one roof. The structure of the deal resembles to that NBCUniversal and predecessor company to Fox made when they launched Hulu.
While speaking at at the 2024 Morgan Stanley Technology, Media & Telecom Conference, Iger stated that Disney needs the technological capability that Netlifx has in order to lower customer acquisition and retention cost, as well as churn rates by increasing engagement. Last but certainly not least, Disney needs to grow its streaming margins by reducing marketing expenses.
As Iger emphasized, Disney is a complex company to run with its business spanning across experience parks, cruise ships, movies, TV and streaming. It is also stepping in the gaming universe as it unveiled in February it will be investing $1.5 billion in “Fortnite” developer Epic Games. With this strategic partnership, Disney will be making its own gaming universe.
But before stepping into the future, Disney has a lot of fixing up to do, which is why Iger is back at the helm. To restore the kingdom to its former glory, Disney needs to get its streaming platforms on technical par with Netflix.