Earlier this year Disney, FOX, and Warner Bros. Discovery announced they would launch a streaming service to offer live sports without the need for non-sports channels. This was quickly met with a lawsuit from Fubo that asks the judge to block the service from launching.
Why is Fubo working to stop this new sports-only streaming service from launching? Today we are going to look at what is happening and break down what they say about why this is happening.
In the lawsuit, Fubo, the live streaming service, alleges that the trio of media giants stole from their playbook in a new attempt to thwart Fubo’s business. On of the big complaints Fubo has is that they have wanted to launch a similar service but have been unable to because Disney, FOX, and Warner Bros. Discovery forces them to offer a bundle of channels including non-sports channels.
This need to offer the Disney Channel to get ESPN, for example, is according to Fubo unfair if these companies decide to offer a sports-only service, which is something Fubo has been asking to do but has been unable to.
“The underlying motives and implication of this joint venture also command our scrutiny. Every consumer in America should be concerned about the intent behind this joint venture and its impact on fair market competition,” Fubo said in an earlier statement.
Disney is arguing in their case to the judge that these new streaming services will bring more options than ever to Americans in terms of how to watch these channels. The fact that they own the content and want to offer a bundle of sports-only channels should be allowed.
Live sports content is in high demand and the competition between streaming platforms to provide it is heating up. Fubo and other streamers would be dwarfed by the powerful union of Disney, FOX, and Warner Bros. Discovery.
“Fubo has leaned into sports programming to differentiate itself from other virtual multichannel services such as YouTube TV and Hulu + Live TV, so it’s no huge surprise to see the company turn to legal action to try to block the proposed streaming sports bundle from Disney, FOX and Warner Bros. Discovery,” Shafer said.
Fubo isn’t the only one to take issue with the new service. NFL executives are having their lawyers comb their contracts with ESPN and FOX to potentially halt the endeavor. The Department of Justice could also present regulator roadblocks for the joint venture.
Many have speculated that this new streaming service could severely hurt Fubo’s ability to attract and keep subscribers.
Now the question is who will win this early fight. Will the judge dismiss the case, or will Fubo get an injunction to block the service from launching? The judge could take a third path and decline both companies requests and let the case and the streaming service move forward.
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