Fox Corporation is set to make its mark in the direct-to-consumer streaming landscape with the anticipated launch of ESPN "Flagship," slated for August. This move marks a significant shift for Fox, which had previously remained on the sidelines of the streaming revolution, focusing primarily on its free, ad-supported service, Tubi. The new service will provide comprehensive ESPN content, aiming to cater to the growing audience beyond traditional cable bundles.
The announcement comes at a pivotal time as Fox prepares to broadcast the Super Bowl this Sunday. Notably, this year marks the first time that the NFL's biggest game will also be available on Tubi. Despite a challenging advertising market, Fox has reported stable viewership and advertising revenue, bolstered by its strategic focus on sports and news content following the sale of its entertainment assets to Disney in 2019.
The company had previously considered collaborating with Warner Bros. Discovery and Disney to create a unified sports content platform called Venu. However, legal obstacles led to the cancellation of these plans. Reflecting on this decision, Fox CEO Lachlan Murdoch expressed that the end of Venu was the company's "only disappointment in sports."
Murdoch confirmed that Fox plans to launch a new direct-to-consumer streaming service by the end of the year. However, he emphasized that this initiative would not disrupt Fox's commitment to the traditional cable bundle.
"But having said that, we do want to reach consumers wherever they are, and there's a large population, obviously, that are now outside of the traditional cable bundle." – Murdoch
Murdoch reiterated Fox's strong support for the traditional cable model, affirming that the company will always maintain its place within it. Further details about the streaming service are expected in the coming months.
The competitive landscape includes Disney's ESPN+, which is developing its own direct-to-consumer ESPN streamer, and Warner Bros. Discovery, which delivers live sports content via its streaming platform, Max. As Fox enters this arena, it seeks to leverage its robust sports content to attract and retain subscribers in an increasingly crowded market.