Disney, Warner Bros Discovery & Fox Sued By Fubo TV

Sports-centric streaming service FuboTV sued the media companies behind a new sports-streaming platform scheduled to launch this fall, alleging they wouldn’t let Fubo carry a small bundle of sports-focused channels that they are now looking to include in the new service. 

The lawsuit, which was filed Tuesday in the U.S. District Court for the Southern District of New York, seeks to block the joint venture among the companies: Fox Corp., Warner Bros. Discovery WBD and ESPN parent Disney. The suit also is asking for a jury trial and punitive damages. 

The companies behind this planned streaming service are using “their power over commercially critical sports content to force Fubo to broadcast unwanted, expensive content that prevents Fubo from offering the sports-centric package of channels that its customers want,” the suit said. 

Shares in Fubo, a nine-year-old streaming service with more than 200 channels and 1.5 million subscribers in North America, have fallen about 20% since plans for the new sports-streaming service were announced.  

On Feb. 6, the companies announced the new streaming service would carry 14 networks, including Disney’s ESPN channels and its ABC network, Warner’s TNT and TBS, and Fox’s broadcast network and sports cable channel.

The Justice Department plans to investigate whether the joint venture involving three competitors would violate antitrust laws, a person familiar with the matter said. The government is likely to aim to complete the review before the new streaming service is offered to consumers, the person added.

In the suit, Fubo also said it is being charged above-market prices, and said the creation of the sports streaming-service would increase the media companies’ incentives not to make their content available to Fubo and others. 

The creation of the sports-streaming service marks a milestone in the growth of the streaming industry and could accelerate consumers’ shift away from cable television. 

The new service is also expected to harm internet-TV bundles such as Fubo and YouTube TV, which cost less than cable TV but are expected to be pricier than this new service. The companies are discussing a price that could approach $50 a month, the Journal previously reported.