Streaming service FuboTV has initiated an antitrust lawsuit against major media conglomerates ESPN, Fox, Warner Bros. Discovery, and Hulu. These companies are in the process of launching a collaborative sports-streaming platform set to debut in the fall.
The legal action was lodged in the Southern District of New York, with FuboTV, known for its emphasis on live sports content, pushing for a trial by jury.
David Gandler, the Co-founder and CEO of FuboTV, expressed his concerns, stating, “Each of these companies has consistently engaged in anti-competitive practices aimed at monopolizing the market, stifling competition, driving up prices for subscribers, and depriving consumers of deserved choice. In essence, this sports cartel has obstructed our strategy for many years and is now effectively appropriating it for their own use.”
The companies involved in the lawsuit have chosen not to comment on the matter.
FuboTV’s legal complaint alleges that it has been hindered for years in its efforts to provide a sports-only streaming service, primarily due to ESPN. The company also claims that Fox and Warner Bros. Discovery have enforced bundling requirements on FuboTV, compelling it to spend significant amounts to license and broadcast content that its customers neither want nor need.
The filing states, “Faced with the threat of disruptive competition from FuboTV and other emerging players, the defendants have responded by joining forces to steal FuboTV’s core business concept—a sports-centric channel package—while simultaneously preventing FuboTV from offering that same package.”
On February 6, ESPN, Fox, Warner Bros. Discovery, and Hulu announced their intention to introduce a sports streaming service, with each company holding a one-third ownership stake in the joint venture. Details regarding the service’s name and pricing are expected to be disclosed later.
FuboTV is not only seeking to halt the proposed joint venture but is also pursuing monetary damages. Should the court not rule in favor of shutting down the joint venture or awarding damages, FuboTV is requesting restrictions on the joint venture to ensure continued competition in the marketplace.
Founded in 2015, FuboTV reported an all-time high of 1.48 million paid subscribers in North America for the third quarter in its most recent quarterly filing last November.
