The long-awaited collaboration between ESPN, Fox, and Warner is a dream come true for sports enthusiasts in the midst of the ongoing streaming wars. Instead of constantly switching between various apps, resorting to illegal streams, and dealing with the hassle of borrowed passwords and logins, we can now enjoy the convenience of a single service to watch games. It’s highly probable that NBC Universal and CBS will follow suit and create their own competing version once they witness the immense revenue generated by this trio’s direct-to-consumer sports model. Perhaps even Amazon will join the fray, completing the consolidation and overthrow. It’s truly astonishing how willingly the American consumer embraces monopolies, and make no mistake, this is indeed a monopoly. The numerous intermediaries such as Fubo, Sling, Hulu, and YouTubeTV, who emerged to capitalize on the desire of cord-cutters for live sports, might as well start preparing for the inevitable layoffs in the first round.
Disney’s decision to align with Fox and Warner is quite peculiar, considering they own ESPN and Hulu. For years, they’ve bombarded us with Hulu Has Live Sports ads, featuring undoubtedly expensive athlete cameos. While the service has had some successful original content like The Handmaid’s Tale, Only Murderers in the Building, and the recent Emmy favorite The Bear, partnering with Fox and Warner essentially undermines its Hulu + Live TV package. It’s possible that the reason the $76.99 per month live TV deal wasn’t selling well is because it’s essentially priced the same as traditional cable. This price point doesn’t bode well for the cost of the ESPN-FOX-Warner venture, which is yet to be announced. The self-congratulatory announcement also mentioned that the sports package will be available as a bundle with Disney+, Hulu, and Max, indicating that Disney CEO Bob Iger may not have much faith in Hulu’s live TV option.
Nevertheless, sacrifices must be made to eliminate all competitors, and that’s precisely the purpose behind this move. Farewell to middlemen, cable companies, and the fleeting hope that cutting cords would provide an affordable alternative. Heaven forbid the live sports bubble bursts or someone challenges the greed of sports commissioners; in such cases, the burden will simply be passed on to the general population. They will pay, as they always do. Any disputes between Comcast and Stan Kroenke over broadcasting Nuggets and Avs games will soon be a thing of the past, as networks will have the power to raise rates without negotiating with cable companies.
Netflix might want to reconsider the substantial investments they’ve made in content that lacks self-sustainability. How much money did they lavish on popular figures like the Hemsworth brother, Dave Chapelle, and Nic Cage? Next time, they should consider directing that cash towards the ACC or another struggling sports entity. Amazon’s partnership with Diamond Sports/Bally appears brilliant in hindsight, and the same can be said for Apple’s involvement with MLB (and perhaps MLS). Thank goodness Alphabet secured the NFL Sunday Ticket when they did; otherwise, YouTube might have lost a fraction of its influence. Despite the fact that Thursday Night Football games have only marginally outperformed Netflix’s weakest original content, the Dallas Cowboys hold more value than the biggest movie stars.
This is the lesson learned here. ESPN, Fox, and Warner have finally recognized that their most valuable assets are also their costliest. Someone was always bound to foot the bill for the billions spent on broadcasting rights, and unsurprisingly, it will likely be the fans.