Streaming cable television alternative Fubo is readying a new programming package that will offer broadcast channels and sports-inclusive networks at a lower price compared to its current base programming package, The Desk has learned.
The new package, tentatively called “Sports & Broadcasting,” will be comparable to cheaper sports-inclusive plans launched by peer platforms DirecTV and Comcast in recent months, and comes as Fubo has re-worked some of its distribution agreements with its biggest programming partners over the past year.
Fubo is targeting the third quarter (Q3) of the year for the launch of the Sports & Broadcasting package, according to two sources familiar with the plan, and is hoping to offer it to sports fans in time for the start of the National Football League (NFL) season. The company has already signed agreements with Fox Corporation and the Walt Disney Company to offer their channels through the new package, and is expected to have deals in place with Comcast’s NBC Universal and Paramount Global to include their networks as well.
If all goes to plan, Fubo will be able to offer network-owned local TV stations from ABC, CBS, FOX and NBC through the Sports & Broadcasting plan, as well as national sports-inclusive networks like ESPN, Fox Sports 1, the Golf Channel and CBS Sports Network. Some non-sports networks like Fox News and Fox Business Network are also expected to be offered through the plan, one source said, noting that Fox Corporation is still requiring its sports channels to be bundled with cable news networks. Access to ESPN Plus and the forthcoming ESPN direct-to-consumer streaming app will also be included at no extra cost.
The cost of the plan is expected to be around $50 to $60 per month — which would put it $20 to $30 cheaper than Fubo’s base plan — though the company is likely to offer a limited-time discount to new and existing subscribers who switch to the plan. The price of the plan would allow Fubo to “break even” on delivering the sports-inclusive networks for at least two years; Fubo will also include access to dozens of free, ad-supported streaming TV (FAST) channels, and executives are hoping to generate additional revenue through targeted ad spots on the sports, news and FAST channels.
There are still some kinks that have yet to be worked out. While Fubo has agreements in place to offer network-owned broadcast stations, the company is still working to bring third-party broadcast affiliates like those owned by Nexstar Media Group, Sinclair, the E. W. Scripps Company, TEGNA and Gray Media to the package. Fubo has programming agreements that include third-party broadcast network affiliates in nearly every market in the country, and the likelihood that those stations will also be offered through the Sports & Broadcasting plan is extremely high, though not definitive, one source affirmed.
The company also does not have an agreement to offer Warner Bros Discovery (WBD) channels like TBS, TNT and Tru TV after pulling those channels and others in 2020. Then, the decision to drop WBD-owned was made so Fubo could pursue what it considered to be a more-lucrative agreement with Disney to distribute ABC, ESPN and other channels. The Desk reported in January that Fubo and WBD executives had restarted discussions that centered around bringing those channels back to the service, around the same time Fubo announced it was merging its pay TV business with Disney’s Hulu with Live TV. The discussions are still in a casual stage, and neither side have proposed an agreement that would bring the channels back to the service, a source familiar with the conversations said.
The launch of the Sports & Broadcasting package is not contingent upon Fubo and Disney receiving regulatory approval to combine their pay TV businesses, two sources said. But, should that occur, the Sports & Broadcasting package will be Fubo’s long-term play, with the company expected to reorient much of its identity and marketing around the plan and eventually making it the new base programming package.
The current Fubo base plan, which starts at $85 per month, will continue to offer general entertainment channels from all four major broadcast network owners and others, as well as regional sports channels, for a while longer. Should the Disney pay TV deal close, Fubo may eventually retire its current base package and go all-in on the Sports & Broadcasting plan, and push customers toward the higher-priced Hulu with Live TV if they want a more-robust cable TV alternative.
Fubo CEO David Gandler himself has confirmed some of this: In public comments after the Fubo-Disney deal was announced, Gandler said he envisions Hulu with Live TV as being a true cable TV replacement — one with entertainment, news and sports channels — while Fubo carries on as a sports-focused service. The statement strongly indicated Fubo would eventually offer a slimmer, sports-focused bundle.
A spokesperson for Fubo has not yet returned a request for comment.
