FuboTV, a popular live TV streaming platform, has taken legal action against industry giants Disney, Fox, and Warner Bros. Discovery, alleging anticompetitive practices. The lawsuit, filed in federal court in New York, also includes ESPN and Hulu as defendants.
FuboTV, in Business since 2015, claims the media companies have engaged in a campaign that has led to suppressed competition in the U.S. Sports-focused streaming market. The companies announced plans to collaborate on a direct-to-consumer streaming app, offering access to sports broadcasts across 14 combined linear channels. FuboTV alleges that this joint venture will continue to suppress competition, harming both FuboTV and consumers.
The lawsuit further alleges that the companies forced FuboTV to accept bundling requirements and imposed licensing fees above the market rate, resulting in higher prices for consumers. The formation of the joint venture is said to create a “freeze-out” of streaming competitors and incentivize them to withhold premium content from FuboTV.
FuboTV seeks a permanent injunction against the joint venture and requests the three companies to unwind the collaboration. The lawsuit also claims that the companies’ control of sports content has led to billion-dollar profits and that the joint venture violates antitrust laws.
The joint venture, announced recently, caused a stir in the sports television industry. Disney, Fox, and Warner Bros. Discovery collectively own the rights to NBA, NHL, NFL, MLB, and NCAA Tournament games, among other sports. FuboTV alleges that the collaboration on the streaming app will substantially lessen competition in the sports content market.
This legal action highlights the growing competition and changing landscape of the streaming industry. It brings to light the challenges faced by smaller streaming platforms and the potential impact of major industry collaborations on consumer options and pricing. The outcome of this lawsuit could have far-reaching implications for the streaming industry and consumers alike.
