Fubo is looking for better deals for their own streaming sports deal, or the partnership will end.
Fubo’s TV streaming service has taken issue with Disney, Fox and Warner Bros. Discovery ‘s surprise partnership in creating a sports-streaming platform. Fubo has filed an antitrust suit against Disney, Fox and Warner Bros. Discovery following “year-long campaign” to stop Fubo’s innovative streaming sports business.
David Gandler , CEO of Fubo, said that these three companies have “blocked [our] playbook for years and are now effectively stealing (it) for themselves.” Fubo says its licensing restrictions from the sports networks has limited the options available to it. The company claims that “unfair bundling conditions” have forced it to pay and distribute expensive non-sports channels, which Fubo customers don’t want.
The Wall Street Journal reported today Disney, Fox and Warner Bros. Discovery could charge $50 per month for its new service. That’s a lot less than you would pay to watch sports on Fubo and YouTube TV. Fubo claims that this is by design and accuses the three of charging more than market rates to license their contents. It says it wants a court to block the project or to limit it by demanding “economic equality of licensing terms” and awarding it damages.
Disney, Fox and Warner Bros. have a business reason to form a sports streaming alliance. Reported last week that Discovery is a good idea, but the timing could be risky, considering the recent regulatory actions taken by the US government. According to Bloomberg, the Department of Justice has already begun reviewing companies’ plans in order to see if they will harm consumers.