In response to a proposed new sports streaming
service, sports-focused virtual pay TV provider Fubo TV has filed a lawsuit against the three companies involved -- Walt Disney, Fox Corp. and Warner Bros. Discovery -- that it says have engaged in
“anti-competitive practices” toward Fubo's business.
The company seeks to block the proposed channel. Fubo is asking for a jury trial and punitive damages.
David
Gandler, cofounder/CEO of FuboTV, says in a release: “Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of
competition, create higher pricing for subscribers and cheat consumers from deserved choice.”
The lawsuit says that right now it is being charged with “above-market prices.”
Looking ahead, it is believed that media companies will go further not making their content available to Fubo and others.
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Fubo TV seems to be referencing all the ESPN cable sports channels
(owned by Walt Disney), as well as FX Sports (Fox Corp) and TNT (Warner Bros. Discovery).
In addition, the lawsuit says the companies will use 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 lawsuit
did not disclose what that “expensive” content would be.
Fubo has more than 200 channels and 1.5 million subscribers in North America. Since the news of the new sports streaming
service two weeks ago, Fubo shares have plummeted by 26%. It closed on Tuesday at $2.00.