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Feb. 23, 2024
Fubo Filed Antitrust Lawsuit Against Walt Disney, FOX Corp and Warner Bros. Discovery
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. By K Dass.
FuboTV, a sports-focused streaming service, has
taken legal action by filing an antitrust lawsuit against The Walt Disney
Company, FOX Corp, and Warner Bros. Discovery. The lawsuit alleges that these
vertically-integrated media giants have been involved in a years-long campaign
to hinder Fubo’s innovative sports-first streaming business. According to Fubo,
this campaign has significantly harmed both their platform and consumers.
Earlier in February, Fox, Disney’s ESPN, and Warner
Bros. Discovery announced their plans to launch a sports streaming service
later this autumn. The joint venture aims to capture younger viewers who are
not tuned in to traditional television. The proposed app would combine the
media companies’ extensive portfolio of professional and collegiate sports
rights, spanning leagues such as the National Football League, the National
Basketball Association, Major League Baseball, FIFA World Cup, and college competitions.
Fubo alleges that the media companies have engaged
in anti-competitive practices, including unfair bundling—forcing Fubo to carry
dozens of non-sports channels as a condition of licensing. Additionally, they
charge Fubo fees that are significantly higher (up to 30 to 50 percent) than
what they charge other distributors. The joint venture, which Fubo claims
“steals their playbook,” is seen as the latest coordinated step in the media
companies’ campaign to dominate the sports streaming market.
The lawsuit contends that by licensing their
must-have sports content exclusively to their own joint venture, other
distributors (including Fubo) would be at a severe competitive disadvantage,
ultimately affecting millions of U.S. consumers. Warner Bros. Discovery, Fox,
and ESPN have declined to comment on the matter.
The unnamed sports streaming service is expected to
offer an all-in-one programming package, including television channels like
ESPN, TNT, and FS1, along with streamed sports content1. Fubo’s legal challenge
highlights the high stakes in the evolving landscape of streaming platforms and
sports broadcasting.
