FuboTV has filed a $1 billion antitrust lawsuit against Disney, FOX, and Warner Bros., seeking to prevent them from launching a shared sports streaming service, alleging that the media companies are forcing Fubo to carry expensive non-sports channels and charging up to 50% higher content licensing rates.
Disney, FOX, and Warner Bros. are teaming up. They’re launching a sports streaming service that’s causing quite a stir. FuboTV, a rival, has slapped them with a $1 billion antitrust lawsuit.
The suit was filed in a New York federal court on Tuesday. Fubo alleges that they’re being forced to carry pricey, non-sports channels. This is supposedly a condition for licensing rights from these media giants.
The big three are now joining forces for a shared streaming service. FuboTV wants to stop them in their tracks. The new service would bring channels from all these companies under one roof. Think ESPN, TNT, FOX, FS1, FS2, and others.
The platform is expected to launch in the fall. FuboTV’s lawsuit accuses the media companies of maintaining an “iron grip” on sports content. They’re allegedly extracting billions in profits.
They’re also accused of charging Fubo content licensing rates that are 50% higher than other distributors. Sounds unfair, right?
Fubo’s CEO, David Gandler, has some strong words. He accuses the companies of anticompetitive practices. He believes they’re trying to monopolize the market, stifle competition, and cheat consumers.
The new streaming service was announced on Feb. 6. It’s a first-of-its-kind deal. It combines all networks under one brand.
Disney already has several streaming services. Warner Bros. has the Max app. The new sports package will also be offered in a bundle.
FOX doesn’t have its own streaming app yet. That’s about to change with this new venture. UFC programming is currently controlled by ESPN. That too would be available through the new service.
Many believe this team-up is an attempt to control spiraling sports rights costs. The NBA could seek a package that doubles or triples their current deal. The costs could reach a whopping $8 billion per year.
UFC broadcast rights could also double. ESPN currently pays about $300 million per year. That’s for a seven-year contract that expires in 2025.
Fubo wants to stop this sports streaming service from launching. Their stock prices dropped more than 25% the day after the deal was announced.
Fubo has dabbled in combat sports in the past. They’re currently broadcasting BKFC events. They’ve also worked with Bellator and the PFL on the Challengers Series. That won’t be featured for the promotion in 2024, though.