Fubo, a prominent sports-focused streaming service, has taken legal action against media giants Disney, Fox Corp., and Warner Bros. Discovery over their proposed sports streaming venture. The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges that the trio’s plan to launch a joint sports streaming bundle violates antitrust laws and poses significant harm to both Fubo and consumers.
In its complaint, Fubo claims that Disney, Fox, and WBD, along with Disney-owned ESPN and Hulu, have been actively working to hinder Fubo’s innovative sports-first streaming business for years. The upcoming launch of their sports-streaming joint venture, scheduled for the fall of 2024, is seen by Fubo as a direct infringement on its business model and an unfair competition tactic. Fubo accuses the companies of essentially stealing its playbook and engaging in anticompetitive behavior.
The streaming company is seeking legal action to either block the joint venture entirely or impose restrictions on the defendants to ensure fair competition, such as demanding equal licensing terms. Fubo also aims to secure substantial monetary damages, although the specific amount is not disclosed in the complaint.
According to Fubo, the damages incurred as a result of the defendants’ actions amount to billions of dollars. The streaming service alleges that Disney, Fox, and WBD have historically exploited their control over sports content to extract excessive profits, resulting in inflated costs for consumers. Fubo argues that these practices have caused significant harm to both its business and its customers.
Among the anti-competitive tactics cited by Fubo in its complaint are unfair bundling practices, wherein Fubo is forced to carry expensive non-sports channels in order to license the defendants’ sports channels. Additionally, Fubo alleges that the companies charge it significantly higher content licensing rates compared to other distributors, and impose non-market penetration requirements, limiting Fubo’s ability to reach subscribers.
Furthermore, Fubo claims that Disney, Fox, and WBD have prevented it from offering compelling streaming products that consumers desire, despite similar offerings being available from other pay TV and streaming services. These alleged anticompetitive practices, according to Fubo, violate various provisions of U.S. antitrust laws, including the Sherman Act, the Clayton Act, and New York’s Donnelly Act.
David Gandler, co-founder and CEO of Fubo, condemned the actions of the three companies, accusing them of monopolistic behavior aimed at stifling competition and inflating prices for consumers. He expressed concern that the joint venture would create insurmountable barriers for new competitors and limit consumer choice in the market.
In a separate development, the Justice Department is reportedly planning to review the Disney/Fox/WBD sports streaming joint venture for potential consumer harms. This indicates growing scrutiny over the consolidation of power in the media industry and the impact on competition and consumer choice.
Overall, Fubo’s legal action against Disney, Fox, and Warner Bros. Discovery underscores the intensifying battle for dominance in the streaming market and raises questions about the fairness of competition and the protection of consumer interests. As the case unfolds, it will be closely watched by industry observers and regulators alike to determine its implications for the future of media distribution and antitrust enforcement.