Disney, Warner Bros. Discovery, and Fox Join Forces: Skinny Bundles and Disrupted Distributors

Skinny Bundles: To Offer or Not to Offer

So we got Disney Warner Bros. Discovery and Fox teaming up to offer live sports outside the traditional cable bundle. But the big question is will the distributors like Comcast Charter and DirecTV be allowed to offer the same skinny bundles to consumers? They're scratching their heads trying to figure that one out. If the answer is yes my friend it's no big deal. But if not well that could cause a lot of consternation. You know the kind that makes you say 'Say hello to my little friend!'

No Sports No Problem

Now here's the thing back in 2023 Charter decided to offer a cable package without any sports. The goal was to lower the cost for customers who only cared about news and entertainment. And you know what? It worked! But now with this new joint venture offering sports only to those who want it the programmers are feeling a bit threatened. They rely on those millions of households who pay for sports but don't actually watch them. It's a tricky situation my friend.

The Distributors Speak... Privately

The big players like Comcast Charter and DirecTV haven't said a peep about this joint venture publicly. They're still collecting information keeping it hush hush. But behind closed doors they're grumbling. They're worried that this skinny bundle will lead to more cable TV cancellations. Can't say I blame them. Nobody likes cancellations. It's like the ultimate betrayal you know?

Terms of Agreement and Lawsuits

Here's where it gets interesting. Pay TV distributors usually make these fancy deals with programmers so they all get the same treatment. It's like 'Scarface' rules you know? But if this sports joint venture plays hardball and refuses to offer the same terms to distributors well things might get ugly. They could refuse to carry the networks or even take 'em to court. I wouldn't be surprised if we see a few lawsuits my friend. It's a battle of the titans!

Impact on Revenue and Crosshairs

Now here's the kicker. Disney Warner Bros. Discovery and Fox they rely on those pay TV distributors for their precious revenue. Without them they'd be like a ship lost at sea. Sure some distributors like Charter and Comcast might benefit from the joint venture but others like DirecTV Dish and YouTube TV... well they're more directly in the crosshairs. It's like they're dancing with danger my friend.

The Elusive Joint Venture

So here's the deal. This joint venture doesn't even have a name yet. Can you believe it? It's like a secret organization plotting behind closed doors. But hey they've tentatively selected a leader a former Apple executive named Pete Distad. The man has got some serious chops I'll give him that. But until the dust settles and the agreements are finalized it's all just whispers in the wind my friend.