Breaking: Department of Justice Reviewing Disney, Fox, WBD Sports Streaming Venture Over Antitrust Concerns

Over the past week, one story has dominated the conversation in and around the entertainment industry. On Feb. 6, Disney, Fox, and Warner Bros. Discovery announced that this fall, they would be coming together to launch a sports streaming service that houses all of the sports content owned by the three respective companies. Almost immediately, surprise and concern began to pop up from across the streaming spectrum as distributors like sports-focused live TV streaming service Fubo and the country's largest cable provider Comcast voiced anti-competition concerns. Major sports leagues with matchups slated to be a part of the new platform — primarily the NFL — are already looking for loopholes to prevent their inclusion. Now, according to Bloomberg Law, those opposed to the streamer might have a powerful ally on their side as the United States Department of Justice is planning to take a closer look at the proposed joint venture to see if it violates antitrust laws in bringing undue harm on consumers, competitors, and the leagues that sold the respective companies their rights before this new platform was announced.

Key Points:

• Content distributors and major sports leagues have voiced concerns over Disney, Fox, and WBD’s proposed joint streamer.
• The DOJ’s injury is not an official investigation and might not lead to any action.
• Independent estimates place the combined streamer at having paid for 55% of the domestic sports rights in 2024.

Despite the fact that early on in the process, research analysts doubted that the federal government would be interested in the joint venture, Bloomberg’s Leah Nylen and Todd Shields are reporting that regulators are planning to examine the terms of the recently announced project once they are finalized. This is not part of any official review and might not lead to any formal investigation, but it is a swift action taken by an organization that tends to move far more deliberately.

While Fubo claimed that the venture could control up to 85% of the major sports in the United States, Citi estimates put the companies involved in the venture at paying 55% of the $26.7 billion for domestic sports rights in 2024.