Fubo Files Antitrust Lawsuit Against Disney, Fox, Warner Bros. Discovery Over Joint Venture Sports Streamer
Fubo Files Antitrust Lawsuit Against Disney, Fox, Warner Bros. Discovery Over Joint Venture Sports Streamer
The proposed streaming platform is already being examined by the Department of Justice, but it appears its legal troubles are just beginning.
Fubo is apparently willing to back up its denunciatory rhetoric about the proposed joint venture sports streaming platform from Disney, Fox, and Warner Bros. Discovery. Puck News founding partner Eriq Gardner has posted on X (formerly Twitter) that Fubo has officially filed a lawsuit against the three companies, for violations of antitrust laws.
- Full details of Fubo’s suit have not yet been revealed.
- The company was quick to denounce the JV streamer when it was first announced.
- Live TV services like Fubo face stiff competition from the proposed streaming service, which will cost significantly less than a traditiona cable plan.
BREAKING: The new sports streamer from Disney, Fox, Warner Bros — what @Ourand_Puck calls Spulu — faces an antitrust lawsuit from FuboTV. A complaint was just filed under seal, and I imagine a redacted version will become public soon.
— Eriq Gardner ✍️ (@eriqgardner) February 20, 2024
When the new JV sports-focused streamer was announced two weeks ago, Fubo was the loudest in its objections. It issued a statement saying that all customers should be “concerned” about the possibility of a streaming service which would control — in Fubo’s estimation — 60-85% of all sports rights offered on TV in the United States. As a sports-centric live TV streaming service, Fubo is more vulnerable than many to customer defections thanks to the introduction of a new streaming platform built around the biggest sports rights in the country.
Now, it is backing up those words with actions. The antitrust lawsuit from Fubo is not the only legal difficulty the nascent JV streamer faces at the moment; it is also facing a review from the Department of Justice, which is likewise concerned about possible antitrust issues.
Is the JV Sports Streamer from Disney, Fox and WBD Doomed?
From a fan perspective, the joint venture streaming service from Disney, Fox and WBD is a dream come true. Provided it can be priced reasonably, the service would offer an excellent variety of live sports, and would also include full versions of channels like ABC, Fox, and TNT, not just sporting events. Many of the networks intended for the streamer have never been offered outside the cable bundle before.
Fubo’s nightmare scenario is that the streamer eventually drives it and other cable channel distributors out of business, leaving the JV platform as the only game in town for sports fans. That obviously creates an uncompetitive business environment, which gives some basis for Fubo’s complaints. The NFL has concerns about the JV streamer for similar reasons; it fears that the platform will reduce the price it can ask for its broadcast rights going forward.
On the other hand, it seems highly unlikely that the JV streaming service will find a market large enough to bring down the entirety of the traditional pay-TV industry. In fact, its target customer base seems rather narrow, as it’s main audience would be sports fans who don’t value cable entertainment and news channels, but prize sports content enough to subscribe to a streamer that only has those options.
The results of the DOJ review could be a big help to Fubo’s efforts. If the DOJ finds that there are antitrust concerns surrounding the service, Fubo would be able to use that evidence in court. If, on the other hand, the DOJ finds that there is no reason to pursue the matter beyond the review stage, it could give the legal teams of Disney, Fox, and WBD ammunition to fight Fubo’s claims.
The legal system tends to move fairly slowly in such cases. For example, a class-action lawsuit against the NFL and DIRECTV over NFL Sunday Ticket is still creeping along, despite being first filed in 2015. That means it could be a while before resolution is reached in Fubo’s case against Disney, Fox and WBD, but it’s clear the live TV streaming service means business in its objections against the JV streaming platform from the three companies.
Fubo
Fubo is a live TV streaming service offering a robust lineup of approximately 150 premier channels, with plans starting at $63.99 per month. This entry-level package provides access to local broadcast affiliates 18 of the leading 35 cable channels channels, and valuable regional sports networks (RSNs).