Saturday, 22 February 2025

Cord Cutters: ESPN & Fox Sports End Talks on Joint Streaming Venture, Will Instead Launch Separate Streaming Services

Story from Cord Cutters:

The prospect of a groundbreaking streaming collaboration between ESPN and Fox Sports has fizzled out, marking the end of a flirtation that once promised to reshape the sports media landscape. According to Puck’s John Ourand, talks between the two giants about integrating Fox Sports content into ESPN’s upcoming direct-to-consumer (DTC) subscription app have officially ceased, leaving each to pursue its own streaming ambitions independently.

“It’s possible that eventually Fox’s streaming strategy will involve selling its own branded bundles to various streamers, but I’m told that ESPN’s D.T.C. launch this fall won’t include Fox programming,” Ourand reported in his subscription newsletter on Friday. The breakdown follows the collapse of Venu Sports—a joint venture with TNT Sports that included ESPN, Fox, and Warner Bros. Discovery—which was abandoned last month after legal challenges and shifting priorities derailed its launch. Speculation had persisted that Fox might pivot to partner with ESPN, licensing its coveted sports content for the Worldwide Leader’s much-anticipated app, slated for a fall 2025 debut. However, those hopes are now dashed.

Now both companies have announced plans to launch their own streaming services offering direct access to Fox Sports and ESPN without the need for cable TV.

During Fox Corp.’s February earnings call, when News Corp Chairman Lachlan Murdoch revealed plans to launch a standalone Fox streaming platform by year’s end. “Fox appears to finally be building its own service,” Ourand noted, signaling a strategic shift for a company that has historically lagged in the streaming race. Unlike rivals who dove headfirst into the “streaming wars” of the late 2010s and early 2020s, Fox took a backseat, offloading its regional sports networks and cable assets to Disney in a landmark 2019 deal. Yet, it retained a formidable portfolio of live sports rights—think NFL’s America’s Game of the Week, the World Series, FIFA World Cup, and Daytona 500—bolstered by FS1’s studio programming, making it a tantalizing prize for any streaming suitor.

For ESPN, going solo aligns with its broader vision under Disney CEO Bob Iger to transform the network into the “preeminent digital sports brand.” The upcoming DTC app, tentatively dubbed “Flagship,” will offer ESPN’s full suite of programming, including personalization features, fantasy sports integration, and ESPN Bet, targeting a younger, tech-savvy audience. Adding Fox’s content could have supercharged that offering—analysts like Wells Fargo’s Steven Cahall have long predicted an ESPN-Fox combo could attract 3 million subscribers by year-end—but Disney seems confident in its own arsenal, which includes NFL, NBA, MLB, and college sports.

Fox, meanwhile, sees an opening to carve its own niche. Murdoch’s comments suggest a service that could bundle its sports juggernaut with Fox News, tapping into a loyal audience that values its blend of live events and commentary. “Fox still carries many of America’s biggest sports events,” Ourand wrote, noting that its package is “a strong draw for sports fans.” This move could also position Fox to capitalize on the growing trend of “skinny bundles,” as pay-TV providers slim down offerings to focus on sports and news—core strengths for the network.

The end of ESPN-Fox talks reflects a broader industry reality: despite rising subscriber costs and a dizzying array of streaming options, consolidation remains elusive. Many predicted a wave of mergers as consumers tire of juggling multiple apps, but for now, these titans are betting on their own brands.

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