This month Disney, Fox, and Warner Bros. Discovery announced plans to launch a new sports streaming service that will give live access to sports networks like ESPN, FS1, and BTN. Now a growing number of companies are starting to object to and may even try to block the service.
We have already heard that the NFL is looking at its contract with ESPN to see if it has any way to block this new service. According to CNBC, cable TV companies are unhappy and are complaining to Disney, Fox, and Warner Bros. Discovery about it. They are afraid this new service will speed up cord cutting to new heights.
At issue here is the demand from cable TV companies that they also be allowed to offer a similar bundle of sports and local channels owned by these networks without other expensive channels like CNN and the Disney Channel. The big three sports companies—Disney, Fox, and Warner Bros. Discovery—have reportedly in the past blocked such plans forcing them to pay for numerous channels to get sports.
Now, according to Craig Moffet from MoffetNathanson, this deal could break the “most favored nation clause” that gives the big cable TV companies the best deals. He says he wouldn’t be surprised if there are some lawsuits over this new streaming service as cable companies believe it may have violated their contracts with Disney, Fox, and Warner Bros. Discovery.
The new service is scheduled for a fall 2024 launch; however, lawsuits and other legal issues could cause delays. For now, the big three behind this service seem dedicated to launching it on time even if it upsets some of their traditional cable TV partners.
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