Sports streamer FuboTV (FUBO) is filing an antitrust lawsuit against the media giant behind its upcoming “joint venture” sports streaming service, citing “extreme suppression of competition in the U.S. sports-centric streaming market.” woke up.
The complaint, filed Tuesday in New York federal court and obtained by Yahoo Finance, specifically accuses the joint venture's parent companies Disney's ESPN (DIS), Warner Bros. Discovery (WBD) and Fox (FOXA). are doing.
Fubo, which is seeking to block the joint venture, claims the companies are using their “iron grip” on commercially important sports content to extract billions of dollars from distributors and consumers. are doing.
According to the complaint, the media giant makes money by “bundling” sports with less desirable content, forcing Fubo to air “less desirable and expensive content” and allowing the company to offer packages that customers actually want. It is said that it was preventing the provision of
Shares of Fubo, which boasts more than 200 channels and 1.5 million North American subscribers, have fallen about 30% since the joint venture was first announced on February 6th.
Disney's ESPN and WBD declined to comment on the lawsuit. Fox did not immediately respond to Yahoo Finance's request for comment.
Fubo said in the lawsuit that the integrated service would ultimately result in a “total freeze” and would only increase incentives for participants to block content they want from Fubo and other sports streaming companies. Stated.
Additionally, the sports streamer said it was being charged license fees that exceeded the market price. In a separate press release, the company said the media giant charges Fubo fees that are “30% to more than 50%” higher than other distribution companies.
“Each of these companies monopolizes a market, stifles all forms of competition, and charges high prices to subscribers,” Fubo co-founder and CEO David Gandler said in a release. “and consistently engaged in anti-competitive conduct aimed at deceiving consumers from their natural choices.”
“By partnering to exclusively reserve the rights to distribute specialized live sports packages, these companies are erecting an insurmountable barrier that effectively prevents new competitors from entering the market. We believe that,” the executive continued.
“This strategy leaves consumers who desire a dedicated lineup of sports channels with no choice but to join Defendants' joint venture.”
The unnamed platform will integrate the media giant's respective slates of sports networks, along with certain direct-to-consumer (DTC) sports services and sports rights. This includes content from all major professional sports leagues and college sports.
The service is expected to launch sometime this fall, and pricing is unknown.
“Simply put, this sports cartel has been sabotaging our strategy for years, and now they're effectively stealing it for themselves,” Gandler added. “Silence is no longer an option.”
According to the Wall Street Journal, the Justice Department will investigate whether the joint venture violates antitrust laws.
The government aims to complete the review before the service is made available to the public, the report added.
alexandra canal I'm a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, Email alexandra.canal@yahoofinance.com.
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