FuboTV has filed a lawsuit in a New York federal court against media giants Walt Disney, Fox, and Warner Bros. Discovery. The lawsuit alleges that these companies have been obstructing FuboTV’s sports streaming service through unfair tactics.
Allegations of Anti-Competitive Behavior
According to FuboTV’s lawsuit filed in the Southern District of New York, Disney, Fox, and Warner Bros. have been engaging in practices that severely limit competition in the U.S. sports-focused streaming market. This, in turn, has resulted in significant harm to both FuboTV and consumers.
Unveiling of Competing Streaming Platform
FuboTV’s Background and Claims
FuboTV, established nine years ago, prides itself on offering a “sports-first” streaming package at a lower cost compared to traditional cable bundles. However, the company alleges that Disney, Fox, and Warner Bros. Discovery, with their extensive live sports content holdings, have been engaging in anti-competitive behavior that has negatively impacted FuboTV’s operations.
By taking legal action against these media giants, FuboTV aims to address what it perceives as unfair practices that hinder fair competition in the sports streaming market.
Lawsuit Against Disney, ESPN, and Hulu
The lawsuit, which also names Disney’s ESPN sports channel and Hulu as defendants, alleges that these media companies are wielding their power over commercially critical sports content to compel Fubo to broadcast unwanted, expensive content. This practice hinders Fubo’s ability to offer the sports-centric package of channels that its customers desire.
FuboTV Shares Experience Significant Decline
Shares of FuboTV have plummeted over 20% since the announcement of the venture on Feb. 6 after the closing bell. The downward trend continued with a 3.4% drop on Tuesday, followed by an additional 0.5% decrease after the closing bell.
Statements from Industry Representatives
A representative from Disney’s ESPN declined to comment on the matter. Representatives from Fox and Warner Bros. were not immediately available for comment.
Fubo’s CEO Speaks Out
Allegations and Demands
Fubo claims that these companies are creating “insurmountable barriers” that obstruct new competitors from entering the market. The company seeks to either halt the joint venture or impose restrictions on the partnership, including demands for economic parity in licensing terms and compensation for damages caused by the defendants.
