With Fox and Disney reporting Q4/full-2023 earnings Wednesday, media watchers are anticipating some details (pricing, launch date, etc.) regarding Tuesday's announcement of a major sports streaming joint venture.
Based on Fox's early morning earnings report, we might not end up getting much info today.
But Wells Fargo Securities analyst Steven Cahall had some interesting predictions that he shared in an investor note.
Also read: Why ‘Re-Bundling Has To Happen’: Breaking Down the New ESPN, TNT Sports and Fox Sports Streaming JV
For starters, Cahall is in line with most analysts on the bundle's price, pegging it at $40 a month. He believes that many sports fans will compliment the service with Peacock and Paramount Plus, which provide live NBC and CBS broadcast feeds, respectively. This bundle would provide the vast majority of linear channels featuring major sports league live telecast and run around $58 a month.
Meanwhile, Disney, Fox and Warner Bros. Discovery have described their JV as an equal measure of 33.333% ownership stakes. But Cahall thinks Disney will control half the economics, simply because its channels supply 52% of the revenue, and conglomerate pays 56% of rights fees to the leagues.
