Comcast Has Questions About New Joint Venture Sports Streaming Platform from Top Rivals
The new streaming service has left important questions in the mind of cable providers, such as contract issues, price, and more.
As sports fans try to determine whether or not they’ll have room in their budget for the new joint venture sports streamer on the way from Disney, Fox, and Warner Bros. Discovery, sports leagues and cable providers have plenty of questions about the service. Comcast is particularly confused as it is not only a channel owner with extensive sports rights via NBCUniversal, but also the owner of the largest pay-TV provider in the country, meaning that it has significant contracts with all three of the media entities involved in the JV. However, it appears that Comcast was left in the dark about the forthcoming streamer until it was officially announced. Though it has not issued an official statement of support or opposition, Front Office Sports reports that privately, the company has both questions and concerns.
- Comcast is asking similar questions to the public about the JV streamer, including its name, price, and structure.
- The company is also seeking more information about how the streamer will affect cable contracts between Disney, Fox, and WBD and their distributors.
- As a cable company Comcast is threatened by the new streaming service, but as a broadband provider it stands to benefit as well.
Comcast in the Dark
FOS spoke to Comcast sources who were caught just as unaware as the general public when the new JV sports streamer was announced. It seems plain that Disney, Fox, and WBD did not reach out to their existing channel distribution partners to give them a heads-up before announcing their new streaming platform, despite the fact that the wider availability of sports will have a dramatic impact on their businesses. Now everyone, including Comcast and Fubo, is in catch-up mode.
The standard questions, such as what will the streamer be named, what will it cost, and who will lead its efforts are all on Comcast’s mind, but more importantly is the question of how it will coexist with cable distributors with larger channel packages, like Comcast’s Xfinity TV.
These myriad questions have reportedly gone unanswered at this point, and that is raising issues around the industry. Multiple reports indicate that this streamer won’t just include live sports from the channels that join it, but livestreams of those channels. Will Disney still be able to demand the highest carriage fee of any cable channel for ESPN if it’s offering a way to watch the channel without a pay-TV subscription for the first time? How will Disney, Fox or WBD approach negotiations with distributors now that they’re getting ready to offer a (presumably) lower-cost option for streaming top sports channels?
Can JV Streamer Coexist With Peacock?
Comcast owns NBCUniversal and its streaming service Peacock, which carries a wide variety of live sports. Peacock gained notoriety as a sports streamer this winter when it streamed an NFL Wild Card game that audiences could not watch anywhere else unless they lived in the market of the teams playing.
There are sports fans can watch on Peacock that won’t be available on the JV streaming platform. For example, Peacock will stream every single event of this year’s Summer Olympics from Paris; fans will only be able to see recaps and highlights on other outlets. Still, the JV streamer could pose a serious threat to Comcast’s cable business, as it does all pay-TV providers who may have a large contingent of subscribers who are only signed up to watch live sports.
Comcast’s position as a broadband provider may insulate it from the effects of the JV streamer on its cable segment, however. Comcast has more than 32 million broadband customers in the United States, and live sports can drive serious internet usage; the exclusive NFL Wild Card game on Peacock consumed 30% of total internet traffic in the country when it was on, for example.
There could also be opportunities to offer a soft bundle of the new JV streamer with Peacock for a discounted price, but that too could encourage cord-cutting from Comcast cable subscribers. Comcast has been trying to more closely integrate its broadband and cable segments of late; its Xumo joint venture with Charter Communications provides a digital platform for selling pay-TV-by-internet plans from both companies, and that platform may include the JV sports streamer in the future.
Comcast has not put out a statement castigating the new streaming platform as Fubo has done, but it has not signaled its support either. Comcast may benefit from the new service, or it may suffer because of its existence, which explains why it has myriad questions about the new platform.
Peacock
Peacock is a subscription video streaming service from NBCUniversal that includes original shows, blockbuster movies, and classic television series. Peacock is home to “Yellowstone,” and “The Office,” as well as original hits like “Poker Face” and “Bel-Air.” You can also watch live sports including NFL, MLB, WWE, Olympics, Premier League, NASCAR, French Open, College Football and Basketball, and PGA Tour. Premium Plus subscribers can stream their local NBC feed in all 210 markets.