Fubo Blasts Forthcoming Disney, Fox, WBD Joint Sports Streaming Service; Is Live TV Streamer in Trouble?
Local channel owners may see an opportunity to profit from the announced JV, but it could spell doom for Fubo.
The entire sports media world was rocked by Tuesday’s announcement that Disney, Fox, and Warner Bros. Discovery would join their sports rights together in a new streaming joint venture. Cable providers and live TV streaming services stand to lose the most from the venture, and the sports-centric live TV streaming service Fubo issued a public response on Wednesday in which it made clear that it had serious concerns about the plan.
- Fubo estimates the new JV streaming service from Disney, Fox, and WBD would control “60-85%” of all sports content in the United States.
- The Streamable estimates that JV streamer will come in at around half the price point of a monthly Fubo subscription.
- Fubo has been struggling to build scale and stands at just 1.48 million subscribers at last count.
What Does Fubo Think of Newly Proposed Sports Streaming Service?
To say that Fubo is upset about the new joint venture streaming platform coming from Disney, Fox, and WBD would be an understatement. In a statement released on social media platform X (formerly known as Twitter), Fubo said that all American consumers should be “concerned” about the impacts that this service might have on competition. Its statement claims that the new streamer will control “60-85%” of sports content broadcast in the United States, and that could lead to reduced competition in the sports broadcasting marketplace, meaning higher prices for consumers.
This wasn’t Fubo’s only reaction to the announcement from Fox, WBD, and Disney about their forthcoming joint venture. It also decided to reach out to younger followers by posting a meme, albeit one that references 2004’s “DodgeBall” to convey the notion that Fubo is an underdog preparing to take on the sports streaming giant that the three companies are preparing to unleash on the market.
— Fubo (@fuboTV) February 7, 2024
To be sure, the proposed JV streaming service will include a huge amount of sports rights. If the service drives cable companies and live TV services like Fubo out of business, it could be one of the only places to watch a wide range of live sports, and that will certainly lead to less competitive pricing for the streamer since there will be less competition. Consumers should be wary of this potential outcome, but the flipside of that coin is that it will give fans a new way to enjoy their favorite sports that won’t require a cable subscription. The proposed JV service will offer livestreams of ABC and Fox’s sports programming, as well as ESPN, FS1, TNT, and other channels owned by the three companies.
Will Joint Venture Put Fubo Out of Business?
On the other hand, it’s undeniable that Fubo’s arguments about the new streamer also come form a place of self-preservation. The company also complained about the NFL’s decision to offer a 2023-24 Wild Card game exclusively on Peacock, so it’s not just the new joint venture that’s drawing the ire of company execs; Fubo seemingly stands opposed to all streaming options that pull customers away from more traditional multichannel video programming distributors.
One factor that Fubo has thus far failed to mention in its protestations is the fact that the JV streaming platform will offer much of the same sports content that customers specifically seek out Fubo for, and will do so at a price that is likely to be half as expensive. The Streamable predicts that customers will end up paying between $40-$55 per month for Disney, Fox, and WBD’s new platform, whereas a Fubo subscription costs $90.98 per month at minimum, including the regional sports network fee that most customers will have to pay.
Assuming that the Disney/Fox/WBD platform is priced at $55 per month, even if subscribers to the as-yet-unnamed JV streamer decide to stack subscriptions to Paramount+, Peacock (starting at $5.99 per month each) and Bally Sports+ ($19.99 per month) to watch sports from CBS, NBC, and their local Bally Sports regional sports network, they’ll be paying $87 per month. That’s still cheaper than the least expensive Fubo plan and gives consumers some idea of why Fubo is so upset about the nascent sports streaming service.
Bally Sports content is coming to Prime Video Channels, and if viewers are forced to pay for a subscription to Prime Video on top of $20 per month to stream their local sports teams the price would finally tip in Fubo’s favor. Still, this is undeniably a headache Fubo does not need at the moment; it has just 1.48 million customers at last count and has not been nearly as successful as YouTube TV in building an expansive customer base.
It may be hard for Fubo to make the case to subscribers that it can provide them with an experience worth the extra expense of choosing its service over the Disney/Fox/WBD JV. It’s not hard to imagine the live TV service losing a large portion of its customer base to the new streaming service, which is why it’s reacting so strongly to the service’s announcement.
Fubo
Fubo is a live TV streaming service with about 90 top channels that start at $79.99 per month. This plan includes local channels, 19 of the top 35 cable channels, and regional sports networks (RSNs). In total, you should expect to pay about $91.99 per month, after adding in their RSN Fee. Fubo was previously known as “fuboTV.”