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Rupert Murdoch’s News Corp. (NWSA) is taking steps to start a national U.S. sports network on cable television aimed at challenging Walt Disney Co. (DIS)’s ESPN, according to people with knowledge of the situation.
News Corp. is assembling the required rights from pay-TV carriers and sports organizations, said the people, who requested anonymity because talks are private. While a final decision hasn’t been made to move forward, the company is considering converting its Fuel action-sports network to the new channel, two of the people said.
With a national network, Fox would join Comcast Corp. (CMCSA)’s NBC Sports Network and CBS Corp. (CBS)’s CBS Sports Network in challenging the dominant ESPN. News Corp. last year secured rights to the Pac-12 Conference and Big-12 Conference games and owns 20 regional sports networks. The company in October won TV rights to soccer’s World Cup in 2018 and 2022.
A national sports channel can capture higher affiliate fees from pay-TV providers such as Comcast and DirecTV (DTV), according to research firm SNL Kagan. ESPN will command $5.06 per subscriber per month this year, the most of any cable channel, SNL Kagan estimates.
That would help pay for sports rights that are growing ever more expensive. Fox, for example, holds rights to broadcast Los Angeles Dodgers games through next year, and exclusive negotiating rights to renew through the end of this year. The price is likely to go up with the team’s planned sale, for a record $2 billion, to a group led by basketball hall of fame player Magic Johnson and Guggenheim Partners Chief Executive Officer Mark Walter.
Carrier Clearance
The new channel could begin service by the end of this year, one person said. The effort is being led by David Hill, the chairman of Fox Sports, one person said.
News Corp., based in New York, has clearance from some carriers, including DirecTV, the biggest U.S. satellite television provider, two people said.
Fuel, a 24-hour action-sports network that carries mixed- martial arts fights, is available in 36 million U.S. homes, according to Fox.
Lou D’Ermilio, a spokesman for Fox Sports, had no immediate comment. Darris Gringeri, a spokesman for El Segundo, California-based DirecTV, declined to comment.
News Corp. fell 2.3 percent to $19.79 and DirecTV added 1.3 percent to $48.82 at 2:36 p.m. in New York.
To contact the reporters on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net; Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
News Corp. is assembling the required rights from pay-TV carriers and sports organizations, said the people, who requested anonymity because talks are private. While a final decision hasn’t been made to move forward, the company is considering converting its Fuel action-sports network to the new channel, two of the people said.
With a national network, Fox would join Comcast Corp. (CMCSA)’s NBC Sports Network and CBS Corp. (CBS)’s CBS Sports Network in challenging the dominant ESPN. News Corp. last year secured rights to the Pac-12 Conference and Big-12 Conference games and owns 20 regional sports networks. The company in October won TV rights to soccer’s World Cup in 2018 and 2022.
A national sports channel can capture higher affiliate fees from pay-TV providers such as Comcast and DirecTV (DTV), according to research firm SNL Kagan. ESPN will command $5.06 per subscriber per month this year, the most of any cable channel, SNL Kagan estimates.
That would help pay for sports rights that are growing ever more expensive. Fox, for example, holds rights to broadcast Los Angeles Dodgers games through next year, and exclusive negotiating rights to renew through the end of this year. The price is likely to go up with the team’s planned sale, for a record $2 billion, to a group led by basketball hall of fame player Magic Johnson and Guggenheim Partners Chief Executive Officer Mark Walter.
Carrier Clearance
The new channel could begin service by the end of this year, one person said. The effort is being led by David Hill, the chairman of Fox Sports, one person said.
News Corp., based in New York, has clearance from some carriers, including DirecTV, the biggest U.S. satellite television provider, two people said.
Fuel, a 24-hour action-sports network that carries mixed- martial arts fights, is available in 36 million U.S. homes, according to Fox.
Lou D’Ermilio, a spokesman for Fox Sports, had no immediate comment. Darris Gringeri, a spokesman for El Segundo, California-based DirecTV, declined to comment.
News Corp. fell 2.3 percent to $19.79 and DirecTV added 1.3 percent to $48.82 at 2:36 p.m. in New York.
To contact the reporters on this story: Andy Fixmer in Los Angeles at afixmer@bloomberg.net; Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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