BT has entered into exclusive discussions with Discovery to create a new sport and entertainment offering for UK subscribers.
It follows months of talks with Sir Leonard Blavatnik’s streaming service DAZN, which was expected to lead to a complete sale of BT Sport. Only in January was DAZN said to be on the cusp of completing the £600 million deal.
Yesterday, BT was in talks with the Premier League over the future of the channel.
The new business would be a 50/50 joint venture, bringing together BT Sport with Eurosport UK. The combination would remain committed to retaining BT Sport’s existing major sports broadcast rights, while BT Sport customers would get access to Discovery’s sport and entertainment content, including the discovery+ app.
Marc Allera, CEO BT Consumer, said: “The proposed joint venture with Discovery, Inc. would create an exciting new sports broadcasting entity for the UK and would act as a perfect home for our BT Sport business. With a shared ambition for growth, as well as the combination of our world-class sports assets along with Discovery’s premium sports and entertainment content, our customers will benefit from even more content in more places.”
It’s a blow for DAZN and chairman Kevin Mayer, who said taking on BT Sport had become uneconomical: “We remain fully committed to growing our business and investing in the UK, as you will see in the near future. However, we respect that BT chose a different strategic path, and wish BT, BT Sport, and Discovery all the best for the future.”
BT Sport launched in August 2013 on the back of BT’s successful bid for Premier League rights, but also including Premiership Rugby, Moto GP and International Cricket. It was designed to help push BT’s broadband service and its BT TV packages.
Prices for the BT Sport package vary with customers on the BT-owned EE mobile network paying £10 a month to receive the service, while the cost to Sky TV homes is £27. Eurosport is currently found in pay-basic tiers.
The announcement will be seen as a blow to DAZN, which wants to build its UK profile, where it primarily focuses on boxing.
