The à la carte dream of streaming is on life support, and the world of sports is providing the first major proof. Fox’s new standalone streaming service, Fox One, has rocketed to 2.3 million subscribers since its August launch, largely thanks to a new bundle with Disney’s ESPN streaming service that proves partnerships may be the key to winning the streaming wars.
By the numbers: According to new data from measurement firm Antenna, Fox One secured 2.3 million subscribers by the end of October. During the same period, Disney’s two-tiered ESPN offering nabbed 3 million sign-ups across its premium ESPN Unlimited ($30/mo) and base ESPN Select ($11/mo) plans.
The bundle effect: The real story is the power of the bundle. A $40-per-month package of Fox One and ESPN Unlimited launched in early October, and its impact was immediate. Fox One added 1.1 million subscribers that month alone, as consumers voted with their wallets for value over pure à la carte choice.
A new front door: By packaging their premium sports content, Fox and Disney are making a clear bet: they can finally win over the cord-cutters and cable-nevers who have balked at the high price of legacy pay-TV. The bundle isn’t meant to replace the old system, but to create a new front door for the audience that has, until now, remained outside of it.
The success marks a reversal of the fragmentation trend, pushing the industry toward strategic re-bundling. The strategy isn’t just about rivals teaming up, either, as Fox is also partnering with Verizon to offer its service at a discount, further rebuilding the value proposition of the old cable bundle for a new generation.
Beyond the big bundle, Fox is also packaging its own services with a Fox One + FOX Nation combo. And for those curious how these numbers are crunched, measurement firm Antenna details its methodology for tracking subscriber growth and churn across the streaming landscape.
