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The sports streaming joint venture between Disney’s ESPN (DIS), Warner Bros. Discovery (WBD) and Fox (FOX, FOXA) is expected to be a little more expensive. Fox CEO Lachlan Murdoch said in recent comments that the price of the streaming bundle will be “in a higher range than what people have been talking about.”
Yahoo Finance Entertainment reporter Alexandra Canal details Wall Street’s pricing expectations for services as media companies assess their core subscriber bases.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by luke carberry morgan.
video transcript
Akiko Fujita: Streaming fees can be even higher. The new sports streaming service from Disney’s ESPN, Warner Bros. Discovery and Fox is expected to cost more than expected, Fox CEO Lachlan Murdoch said. How much will this bundle cost?
Bring in Yahoo Finance senior reporter Allie Canal. Ally, what numbers are you talking about?
Alexandra Canal: Now, Akiko, unfortunately, when it comes to wallets there, the skinny bundle isn’t going to be that skinny. But Wall Street expects the service to cost about $40 to $50 a month. So, given these comments, it looks like this joint venture will result in a higher price, just around $50. It is scheduled to be released later this fall. So I think we’ll get official confirmation on pricing sooner or later.
Now, the pitch here is that this service appeals to cord cutters and will never appeal to cord cutters. He estimates that 50 million to 60 million Americans currently don’t subscribe to a cable bundle. And a large portion of that population is going to be attracted to these kinds of offerings there.
But one risk that really clouds the outlook is potential regulatory approval. Last month, we learned from FuboTV that the company filed an antitrust lawsuit against the companies behind the joint venture, Fox, Warner Bros. Discovery, and Disney, citing anticompetitive practices. .
But Lachlan Murdoch yesterday said he had no concerns about regulatory approval. “When you look at this service, you see that it’s focused on a demographic of people who are professional consumers, professional competitors, and don’t have access to sports content at all,” he said. So whether this gets approved or not, it’s a big question mark and we’ll be watching closely.
Also, given that there are so many options on the market today, if we asked people to pay for yet another streaming service, how many subscribers would this service have? Especially in the sports market. It’s a very hot market. I think this is why these companies were attracted to offers like this. But, you know, you’ve got to see when the push is going to come, and a big part of that question mark is going to be the pricing point.
Rachel Akuffo: surely. Unfortunately, this is where additional charges are added. Allie Canal, thank you so much for explaining everything for us.
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