In a historic deal that Disney CEO Bob Iger describes as “an important step forward for the media business,” Fox Corp., Warner Bros. Discovery, and The Walt Disney Co. will collaborate to launch a new firm that would integrate streaming sports rights.

In addition to games and other sports rights from all three firms, the company will provide live broadcasts of linear networks including ESPN, ABC, Fox, TNT, and TBS on a non-exclusive basis (meaning they will still be allowed to launch their on offers). Customers will be able to purchase the service separately or in combination with WBD’s Max, Disney’s ESPN+, and Hulu.

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Each of the three businesses will own one-third of the new business, which will have a separate management team and identity. The parties have an understanding in principle, but reaching a final agreement is necessary for the deal to go through.

Despite being a significant advancement, the new business is reportedly not anticipated to interfere with ESPN’s intentions to launch a direct-to-consumer “flagship” streaming service; rather, it is intended to enhance them. The new endeavor resembles a “skinny bundle” of streaming networks in several aspects, with an exclusive concentration on channels offering live sports, as opposed to entertainment.

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With rights to the NFL, NBA, MLB, NHL, college football, NCAA March Madness basketball, FIFA World Cup, three of the four grand slam tennis tournaments, UFC, Formula 1, and NASCAR, the agreement would establish a massive streaming sports conglomerate.

“The introduction of this new streaming sports service is a big deal for ESPN and Disney, a huge victory for sports fans, and a significant advancement for the media industry,” Iger said in a statement. This implies that customers will have access to the whole ESPN channel lineup in addition to sports programming from other top producers as part of a unique sports-focused service. I’m appreciative of Jimmy Pitaro and the ESPN team for leading the way in consumer-focused innovation to produce new products with more options and better value.

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Fox CEO Lachlan Murdoch continued, “We’re thrilled to bring the Fox Sports portfolio to this new and exciting platform.” “We think the service will offer a variety of incredible sports content in one location to ardent fans outside of the traditional bundle.”

“At WBD, we always want to reach as many viewers as we can with our top brands and content. This innovative joint venture, along with the unmatched combination of marquee sports rights and access to the world’s biggest sporting events, allows us to do just that,” WBD CEO David Zaslav continued. “We’re excited to offer this new sports service to sports fans as it demonstrates how our industry can spur innovation and give consumers more choice, enjoyment, and value.”