FuboTV, a sports-focused live streaming platform, has filed a $1 billion lawsuit against media giants, namely, The Walt Disney Company, Fox Corp., Warner Bros. Discovery, and their affiliates, for alleged anti-competitive practices. FuboTV files an antitrust lawsuit to block Disney, Fox, Warner sports streaming service deal.
Sports-focused streaming service FuboTV said on Tuesday it has filed an antitrust lawsuit against Walt Disney, Fox and Warner Bros Discovery over a planned sports streaming service by the companies.
FuboTV files lawsuit
The lawsuit has been filed in the Southern District of New York. FuboTV, which focuses primarily on live sports, is seeking a jury trial.
Fubo alleges in a statement that the media companies have engaged in a “years-long campaign” to block the sports streaming service subscribers growth by engaging in anti-competitive practices. The recently sports streaming joint-venture “steals Fubo’s playbook” it said, and is “the latest example of this campaign.”
“This is the straw that broke the camel’s back,” as per Fubo co-founder and CEO David Gandler. “We tried to be rational and polite. That time is over.”
FuboTV competitors streaming service
Earlier in February, FuboTV competitors Fox, Disney’s ESPN and Warner Bros Discovery announced plans to launch a sports streaming service later this autumn to capture younger viewers who are not tuned in to television.
The streaming deal between Fox and ESPN would create an app that combines the media companies’ broad portfolio of professional and collegiate sports rights. This would include the National Football League, the National Basketball Association, Major League Baseball, FIFA World Cup and college competitions.
Sports streaming merger unfair
Fubo claims that the sports streaming merger would have the companies engage in “a long-running pattern of styming” its service by engaging in alleged “unfair bundling,” or forcing it to carry dozens of non-sports channels, as a condition of licensing.
FuboTV lawsuit also alleges that the media companies charge fees that are as much as 30 to 50% higher than the rates Fubo streaming service charge other distributors, among other conduct.
Unfair market capture
It claims that the sports streaming merger is just the latest coordinated step in a campaign to capture this market an Fubotv subscribers for themselves.
“By combining to license their must-have sports content on a standalone basis to their own joint venture, other distributors, including Fubo, would be at an extreme competitive disadvantage to the detriment of millions of U.S. consumers,” according to FuboTV lawsuit.
Warner Bros Discovery, Fox and ESPN declined to comment on the same.
The service, which is yet to be named, is expected to offer an all-in-one programming package that would include television channels, such as ESPN, TNT and FS1, as well as streamed sports content.
DOJ investigation
As per last reports the Department of Justice (DOJ) plans to investigate the recently formed Disney, Fox and Warner Bros. Discovery sports streaming joint venture on antitrust grounds. As per, New Street Research analyst Blair Levin an antitrust investigation poses a material risk until resolved. Though he added the firm is skeptical the DoJ will block or materially change the venture.
