NEW YORK—The sports-focused vMVPD Fubo has reacted to plans by ESPN, Fox Corp. and Warner Bros. Discovery to launch a massive new direct-to-consumer sports streaming service next fall by noting that “streaming joint ventures rarely work” and by raising concerns about “the intent behind this joint venture and its impact on fair market competition.”
Fubo has positioned itself in the market as a vMVPD focused on offering sports programming and the Feb. 6 streaming service announcement hammered Fubo’s stock, which fell from $2.54 prior to the announcement to a low of $1.76 on Feb. 7 before slightly recovering to $1.94 at 11:46 a.m. on Feb. 8.
In a statement on the new joint streaming service, Fubo noted that they were “not surprised” to see more streaming options becoming available even though “a consortium born of historical competitors is a difficult undertaking, and streaming joint ventures rarely work. As well, we know sports-only programming is highly challenged.”
Fubo also stressed the combined streaming offering touted by ESPN/Fox/WBD taps into the consumer desire for more bundled services, something that Fubo already provides. “Consumers have demonstrated that they want an aggregated sports, news and entertainment package differentiated by a quality product experience," it said. "This is what Fubo delivers. We have also continuously pushed the boundaries of live TV streaming with market-first features like 4K, multi viewing and AI products like our just-launched Instant Headlines.”
It also stressed, however, that “the underlying motives and implication of this joint venture also command our scrutiny. Every consumer in America should be concerned about the intent behind this joint venture and its impact on fair market competition. This joint venture spotlights a concerning trend where an alliance with significant market share, reportedly controlling 60-85% of all sports content, could dictate market terms in a manner that may not serve the broader interests of consumers.”
“We believe our robust programming and quality product experience cannot be duplicated by what is likely to emerge from this joint venture,” the statement concluded.
