New sports streaming platform: What to know

The U.S. media world was rushing — or panicking? — Wednesday to try to figure out the ramifications of Disney, Warner Bros. Discovery and Fox‘s new joint venture, an unprecedented move to work together in the years since media companies broke out their own competing streaming platforms.

The service will launch this fall and cater to sports fans who don’t subscribe to the traditional cable bundle. Consumers will have access to all of the networks owned by those companies that carry sports, along with Disney’s ESPN+.

Some of the motivations for the companies are clear, as they look to sports to help drive streaming profits. Other reasons for launching the product are murkier and more company specific.

Many media executives are scrambling for answers about a deal that could have major ripple effects in the industry.

At first glance, the venture is a big concern for the three largest pay TV operators, Charter, Comcast and DirecTV.

But just how much they stand to lose is murky. One person associated with the launch of the new venture told CNBC the platform will be “a monster” and massively disrupt cable TV.

That’s possible. Some percentage of people who eventually sign up for the sports bundle will cancel traditional cable in favor of the new, cheaper alternative. The price for the new product hasn’t been determined, but sources told CNBC it will be higher than $30. One person said $45 to $50 per month seemed logical after discounted introductory offers expire.

A product around $40 a month is much cheaper than the $72.99 per month for YouTube TV, which is now a growing cable alternative for sports fans.

But it’s also possible the platform simply doesn’t have a huge audience. There’s a…