Advertising Will Be the Bedrock of the Disney, Fox, Warner Bros. Discovery Sports Streaming Joint Venture
If ESPN’s ratings this year have shown anything, it is that live sports still make up the backbone of television.
Even in an age when streaming has become dominant and linear television has been announced (perhaps prematurely) dead, live sports continue to bring in viewers, giving networks some of their highest ratings of all time.
Photo: Jeffrey Becker/USA TODAYSports/NPSTrans/tropic
As The Walt Disney Company, Fox, and Warner Bros. Discovery get set to launch their sports-centric streaming joint venture, the three companies are keenly aware of the value of what they are offering.
Advertising Will Be Key to the New Sports Joint Venture
According to a new report from Variety, all three companies plan to use the upcoming joint venture to sell advertising during the industry’s annual “upfront” market. This would include the advertising on the networks involved (for example, ESPN or TNT) in addition to supplemental advertising on the streaming feeds.
Photo: ESPN
While the most recent revelation is not surprising, it is interesting. The price of the sports-centric streaming service has yet to be announced, meaning that the consumer base has not yet been clearly defined. Previously, the three companies have stated that they expect the new sports streaming service to hit 5 million subscribers in its first five years.
As Disney, Fox, and Warner Bros. Discovery continue to operate in an ever-evolving media market, the companies are hedging their bet and chasing after the sports fans who have left cable behind.
Disney/Fox/Comcast/Ringer illustration
Whether or not their joint venture will be appealing enough to justify the cost, however, remains to be seen.
Peter Distad will oversee the new joint venture. Photo: Variety
What we do know is that advertising, and perhaps lots of it, will play a key role in the streaming service when it launches.
