Fox, Disney, and Warner Bros. Discovery are set to give advertisers a “sneak peek” of their new joint sports streaming venture during the industry’s annual upfront market, according to sources cited by Brian Steinberg of VARIETY. Sources said that the three companies plan to use the new streamer -- the official name of which has “yet to be announced” -- to “boost the impressions they have to sell to Madison Avenue.” Sources said that each company will offer to “use the audiences expected to watch the programs they contribute to the new business -- and the national commercials that accompany them -- to fill out advertiser schedules.” One of the sources said that the companies could also “insert ads as needed in the feeds if need be.” While many aspects of the new service “remain unknown,” the revelation of these plans “suggests that advertising will play a role.” The price of the service is to be announced at a later date, but the companies will “likely set a monthly subscription that is more than a consumer would pay for a standalone regional sports network,” which costs $20 to $30 per month, and “less than a larger digital programming package such as Hulu + Live TV or YouTube TV,” which cost around $75 to $80 per month. The hope is that the new streamer “replaces some of the distribution revenue the companies are losing as one-time subscribers get their content elsewhere.” As the upfront plans reveal, perhaps there is “also room to bolster ad revenue too.” But Steinberg writes “one challenge” is that the number of people who plan to subscribe is, “for now, unknown” (VARIETY, 4/29).
