A new streaming app that franchises the TNT name will launch shortly after Warner Bros Discovery (WBD) spins out its cable networks, a senior executive confirmed this week.
Speaking at the Bank of America Securities Media, Communications & Entertainment Conference this week, WBD Chief Financial Officer Gunnar Wiedenfels said development is underway on a standalone TNT Sports app. The product will serve as a direct-to-consumer option and could be bundled with Discovery Plus or offered through distribution partnerships.
The development of the TNT Sports app comes as WBD is preparing to spin off its cable networks into a company called Discovery Global, which will house TNT, TBS, Tru TV and other sports-inclusive channels.
“We’re working on creating our own TNT Sports app, which is going to be available as a streaming product, but importantly as a bundle option — internally with Discovery Plus, not so internally anymore with HBO Max, but also open to other partners in the industry,” Wiedenfels said. “That’s going to be a great additional monetization opportunity.”
The spin-out is expected to be complete next year, after which Widenfels will lead Discovery Global and be in charge of the cable networks business. Warner Bros will retain HBO Max as part of the plan, and Widenfels said its live sports programming will “come off HBO Max” when the separation is complete.
“What means that we need to have our own streaming home,” he affirmed.
The launch of the TNT Sports app comes at a time when other broadcasters are launching sports-inclusive apps of their own, bringing their live channels beyond the cable bundle and selling them directly to streamers.
Last month, both Fox Corporation and the Walt Disney Company launched Fox One and ESPN Unlimited, streaming apps and plans that include their sports networks. Next month, both companies will partner together on a bundle that includes access to Fox One and ESPN Unlimited for $40 per month, which is $10 less than what streamers would pay if they purchased both services on their own.
In June, The Desk was first to report that Fox was holding discussions with ESPN and WBD about bundling Fox One with their streaming apps. The arrangement opened the door for Fox, WBD and ESPN to offer a streaming bundle that resembled Venu Sports, a streaming app that was being developed by the three companies as a joint venture before it was sued out of existence by Fubo.
Discussions with WBD were taking place before the company announced its intention to spin out its cable networks, but those talks have continued in the months since, The Desk reported in August. Pete Distad, the CEO of Fox’s streaming business, confirmed in an interview with the Los Angeles Times that the company is focused on bundling its app with other streaming partners, without naming any specifically.
A standalone TNT Sports bundle could be a prime candidate to bundle with Fox One and other streaming apps and plans, including ESPN Unlimited. Despite WBD’s shifting strategy with respect to sports — the company lost NBA rights to Comcast’s Peacock and Amazon’s Prime Video — Wiedenfels said live sports continues to be a priority for the cable networks business, and Discovery Global will aggressively pursue more rights when the spin-off is done.
“Sports is a core part of our strategy,” Wiedenfels said. “We’re always going to continue looking at everything that comes to the market… I love the portfolio as it stands right now. And if there are rights that become available as everybody is kind of reshuffling their strategies, we’ll be there, and we’ll take a look.”
—
Read more:
