Fubo Sues Disney, Fox and Warner Bros. Discovery to Block Sports Streaming Deal
Fubo is suing Disney, Fox and Warner Bros. Discovery, accusing the companies of engaging in a years-long campaign of anticompetitive practices to block the sports streaming platform’s business.
The antitrust lawsuit alleges that the companies’ have “leveraged their iron grip on sports content to extract billions of dollars in supra-competitive profits” by charging consumers more for sports content, resulting in damage to both Fubo and its customers. The suit adds that the sports streaming joint venture “steals Fubo’s playbook and is the latest example of this campaign.”
“Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice,” Fubo cofounder and CEO David Gandler said in a statement.
“By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market. This strategy ensures that consumers desiring a dedicated sports channel lineup are left with no alternative but to subscribe to the Defendants’ joint venture.”
Representatives for the joint venture declined to comment.
In addition to the venture, Fubo’s complaint slammed the companies for forcing it to carry dozens of expensive non-sports channels that its customers don’t want as a condition of licensing sports content.
It also claimed that the licensing rates are as much as 30% to 50% higher than those charged to other distributors and that they impose non-market penetration requirements, or the percentage of total subscribers to which a content package must be sold to or cannot exceed.
Fubo argues that these actions individually and collective increase the costs that it must pass onto consumers, resulting in billions of dollars of damages. It also says that it has been restricted from offering a compelling and desirable product for consumers that is already offered by other streaming services and traditional pay TV services.
The suit aims to prohibit the joint venture or alternatively impose restrictions in order for it to proceed, such as economic parity of licensing terms and substantial damages.
“Silence is no longer an option. The fact that live sporting events dominated television viewership in 2023, with 97 of the top 100 broadcasts, highlights the critical importance of sports in entertainment and the necessity for its broad dissemination. Reports that the Department of Justice intends to look into the joint venture are encouraging, and it evidences the potential negative and widespread impact this alliance will have,” Gandler added.
“Fubo seeks equal treatment in terms of pricing and all relevant conditions from these media giants to ensure we can compete fairly for the benefit of consumers. Our customers deserve access to a competitively priced offering with innovative features designed by Fubo for an unparalleled sports viewing experience.”
Shares of Fubo, which are down 11.8% in the past year, closed at $2 apiece at the end of Tuesday’s trading session.
The post Fubo Sues Disney, Fox and Warner Bros. Discovery to Block Sports Streaming Deal appeared first on TheWrap.