From Tom Jones | Poynter <[email protected]>
Subject Lachlan Murdoch sets expectations for new sports streaming service
Date March 5, 2024 12:29 PM
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The service — from Fox, Disney and Warner Bros. — may cost about $50 a month. Fox expects about 5 million subscribers in the first five years. Email not displaying correctly?
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** OPINION
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** Lachlan Murdoch sets expectations for the new sports streaming service
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Fox CEO Lachlan Murdoch, shown here in 2020. (Evan Agostini/Invision/AP, File)

I recently had a conversation with someone who has close ties to the sports media world. I asked this person if they were surprised by the sudden announcement last month that Fox Corp., Disney (owner of ESPN) and Warner Bros. Discovery were teaming up to put all of their sports coverage under one streaming venture.

This person said they didn’t see it coming. No one did.

It’s clear that the idea of this unique partnership was brainstormed by executives at the highest levels. We’re talking about Lachlan Murdoch at Fox, Bob Iger at Disney and David Zaslav at Warner Bros. Discovery. Sure, one could assume that a few other bigwigs — ESPN boss Jimmy Pitaro, for one — were in on the discussions. But it was kept so hush-hush that it’s believed even the major sports leagues were stunned when the three companies made their announcement last month.

To catch you up quickly, subscribers to this new service will be able to access all of the sports programming from ABC, Fox, the entire slate of ESPN’s networks, as well ESPN+, and sporting events from cable channels such as FS1, TNT, TBS, the Big Ten and SEC Networks and so many more. It’s expected to launch in the fall.

Now, to be clear, this does not mean cable subscribers will have to get this new bundle to watch sports. Those who get cable will still get ESPN, TNT, TBS and so on. But this new service is perfect for cord-cutters.

So how many will sign up for this new thing?

Speaking at a conference Monday hosted by Morgan Stanley, Murdoch said Fox has “built plans around” having 5 million subscribers for the first five years. He added, “Some of the talk around this being in the teens or 20 million subs, we don’t think that’s the case.”

Yeah, 20 million does seem unrealistically high. But 5 million, frankly, feels a little low. Still, Murdoch called it a “very good business for us.”

He added, “What this bundle does is put a majority of sports into one bundle. It’s an easy place for sports fans to come to.”

It’s still unknown what the price point will be. Estimates are somewhere between $35 and $50 a month. My guess would’ve been on the lower end of that scale, but Murdoch said, “Pricing is going to be in the higher ranges of what people have talked about.”

Already, the joint venture is facing a lawsuit from Fubo, which claims that the new sports service won’t let Fubo carry a small bundle of channels that the new venture plans to incorporate into its new service. In addition, Fubo is alleging unfair “bundling,” meaning it will be forced to “carry dozens of expensive non-sports channels that Fubo’s customers do not want as a condition of licensing the Defendants’ sports channels.”

And Bloomberg’s Leah Nylen and Todd Shields reported ([link removed]) the Department of Justice will investigate over concerns it could harm consumers, media rivals, and sports leagues.

Murdoch, however, doesn’t seem concerned about whether or not the joint venture will survive any regulatory issues or be overall successful. He said, “We have obviously done a lot of work on this. We’ve thought about it extensively.”


** There’s more …
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Another interesting comment Murdoch made was Fox’s decision to stay out of the entertainment streaming game, like, say, Disney+ or a competitor to Netflix.

Murdoch said, “We’re not going back into the arena. We’re out of the streaming arena, from an entertainment perspective. In the entertainment streaming wars, the arena is like a sea of blood. Everyone’s bled out and we’re happy not to engage in it.”

A MESSAGE FROM POYNTER
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** Journalists at The Desert Sun end strike
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For this item, I turn it over to my Poynter colleague, Angela Fu.

Striking journalists at The Desert Sun in Palm Springs, California, returned to work Sunday after reaching a tentative contract agreement with parent company Gannett.

The agreement marks the end of the first open-ended strike ([link removed]) in the paper’s 97-year history. Unionized journalists had walked off the job Friday, frustrated with the pace of contract negotiations, which had lasted for three years. One day later, however, the union announced that it had secured “immediate, life-changing” raises for many of its members.

The new contract includes a wage floor of roughly $54,000 and annual raises to keep up with cost of living increases — a previous point of contention during negotiations. The union estimates that members will receive an average raise of 16.5% when the contract takes effect. For some members, that figure will be as high as 48.51%, or $20,384.

The contract also requires managers to attend a diversity, equity and inclusion conference or event at least twice a year and forbids the company from using artificial intelligence to replace local news reporting and writing. Union members will vote to ratify the contract in the coming weeks, unit steward Tom Coulter said.

At just two days long, The Desert Sun strike is the shortest open-ended newsroom strike in recent history. Such work stoppages are relatively rare. Since 2021, unionized journalists at several dozen newsrooms — including The New York Times, The Washington Post and Vogue — have held one-day work stoppages, but only four other media unions have launched open-ended strikes. Those have generally ranged in length from six to 24 days.

One union, the Newspaper Guild of Pittsburgh, remains an outlier. Unionized journalists at the Pittsburgh Post-Gazette have been on strike for more than 500 days.


** MSNBC’s new live series
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MSNBC host Jen Psaki talks with Biden principal deputy campaign manager Quentin Fulks at an MSNBC event in Washington on Monday. (Courtesy: MSNBC)

On Monday, MSNBC launched the network’s inaugural live events series, MSNBC Live, in Washington, D.C., with “The March Fourth,” which previewed today’s Super Tuesday contest and President Joe Biden’s State of the Union address on Thursday.

During his opening remarks, host and creative director Luke Russert said, “Pursuing the truth, making sense of the stories behind the stories, letting people know what's actually going on is inherent to our mission ‘MSNBC Live.’ We'll never claim to have all the answers, but we promise a robust search and there's no better way than by having insightful and enlightened conversations with some of America's preeminent thought leaders. While there is strong demand for what comes across our screens, we've seen, especially since the pandemic, the value add in gathering again. We know many brands play in this space, it helps to have one with a devoted fanbase and the technological abilities that are at the industry’s forefront of cutting edge.”

MSNBC president Rashida Jones added, “We want to continue to be the place for people to become more informed about the world that we live in. Especially during such a high-stakes year with the election and unprecedented trials. ‘MSNBC Live’ is a result of the brand loyalty built over many years. We will use our trusted journalists and experts to get answers and to have critical and frank discussions. It's an exciting and important moment for us and we’re grateful for you to be a part of it.”

Monday’s event, sponsored by Business RoundTable, included Steve Kornacki previewing Super Tuesday; MSNBC host Jen Psaki interviewing Biden principal deputy campaign manager Quentin Fulks; Russert interviewing former Maryland Gov. and Senate candidate Larry Hogan; and MSNBC’s “The 11th Hour” host Stephanie Ruhle sitting down with actress and activist Sophia Bush and entrepreneur Nia Batts to talk about the importance of support for female entrepreneurship.


** Good advice
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Washington Post media critic Erik Wemple does an occasional online chat with readers. In his latest ([link removed]) , Wemple was asked, “What advice would you give to new journalists, particularly those who wish to write opinion?”

Wemple wrote, “This is a tough one, but I am going to go with: Specialize. Find a beat and make it as narrow as possible. Not, say, education, but city charter schools. Not, say, politics, but the Hispanic vote. Not, say, sports, but gambling on sports. Or even narrower than those options.”

Good advice. Check out Wemple’s chat for other questions about Post coverage and the world of journalism.


** On to the next thing
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In an emotional news conference, Philadelphia Eagles center Jason Kelce, brother of Kansas City Chiefs tight end Travis Kelce (and you know who he is), announced his retirement from the NFL on Monday after 13 seasons. But this is not going to be the last you see of Kelce. He’s a decent bet to someday enter the Pro Football Hall of Fame.

In addition, Kelce is going to be in high demand by media companies. He already does a highly successful podcast with his brother called “New Heights.”

The next natural step is being an analyst for a network, such as ESPN. But I actually think Kelce should have aspirations beyond talking about football. With this larger-than-life personality and obvious sense of humor, maybe Kelce could move into the comedy/entertainment space.

Either way, he doesn’t seem like the type to go into hiding. He’s going to be on a TV or computer or cellphone sooner rather than later.

The Athletic’s Andrew Marchand reports ([link removed]) that “NBC and CBS are viewed as the favorites” should Kelce decide he wants to be an NFL studio analyst, and that ESPN is interested in him, too. It’s unlikely that Fox Sports could entice him, even if they wanted him. Kelce, it’s believed, would want an easy commute from his home in Philadelphia, and Fox’s studio is in Southern California.

Meanwhile, Bloomberg’s Ashley Carman reports ([link removed]) that the Kelce brothers’ podcast could shop for a new deal. Carman wrote, “Industry executives believe the deal could go for eight figures.”


** Media tidbits
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* Longtime media columnist Margaret Sullivan with “Why the leak investigation inside the New York Times newsroom is so disturbing.” ([link removed])
* And The Washington Post’s Laura Wagner with “New York Times accused of racial targeting in leak hunt over Israel stories.” ([link removed])
* Nieman Lab’s Jane Elizabeth with “What happened when the Chicago Sun-Times freed the news.” ([link removed])
* Here is ESPN’s wonderful tribute ([link removed]) to NFL reporter Chris Mortensen, who died over the weekend at the age of 72. ESPN’s NFL insider Adam Schefter narrates.
* Catching up on this from last week: Lucy Nicholson is joining The Associated Press ([link removed]) as its new director of photography. Nicholson joins the AP from Reuters, where she led its photography in Europe. She becomes the first woman to serve as AP’s director of photography.
* Sad news: Joyce Slocum, who led Texas Public Radio as its CEO and president since 2014, has died from complications of colon cancer. She was 66. Slocum also worked at NPR from 2008 to 2013. While serving as general counsel in 2011, Slocum was asked to be NPR’s interim CEO — a role she served for nine months. Here’s more ([link removed]) from Texas Public Radio’s Dan Katz and Fernando Ortiz Jr.
* Will Shortz, crossword editor for The New York Times and host of NPR’s “Sunday Puzzle,” said he is recovering from a stroke. During the puzzle segment on NPR’s “Weekend Edition Sunday,” there was a recorded message that said: “Hey guys, this is Will Shortz. Sorry I’ve been out the last few weeks. I had a stroke on Feb. 4, and have been in rehabilitation since then, but I am making progress. I’m looking forward to being back with new puzzles soon.” The New York Times’ Livia Albeck-Ripka has more ([link removed]) .


** Hot type
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* The Atlantic’s Saahil Desai (and photos by Ann Hermes) with “America’s Last Morse-Code Station.” ([link removed])
* The Athletic’s Kevin Kurz and Ian Mendes with “The hockey brawl that changed the NHL forever, told by those who lived it.” ([link removed])


** More resources for journalists
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* Subscribe ([link removed]) to Poynter’s Friday newsletter, Open Tabs ([link removed]) with Poynter managing editor Ren LaForme, and get behind-the-scenes stories only available to subscribers.
* Delve more deeply into your editing skills with Poynter ACES Intermediate Certificate in Editing ([link removed]) . Start anytime ([link removed]) .
* Essential Skills for Rising Newsroom Leaders (Seminar) (May) — Apply by March 26 ([link removed]) .
* Get the edge on reporting on the seven hot topics of the 2024 election with Beat Academy ([link removed]) (webinar series) — Rolling enrollment from now through September. Enroll today. ([link removed])

Have feedback or a tip? Email Poynter senior media writer Tom Jones at [email protected] (mailto:[email protected]) .
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