FuboTV sues to block ESPN, Warner, Fox sports-streaming venture

By Jon Swartz

FuboTV filed a lawsuit Tuesday to block a new sports-streaming joint venture scheduled to premiere this fall, claiming the ESPN-Warner Bros. Discovery-Fox juggernaut would squeeze Fubo's ability to carry a skinny bundle of sports-focused channels that the venture plans to include.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, seeks a jury trial and punitive damages against the service from Walt Disney Co.'s (DIS) ESPN, Fox Corp. (FOX) and Warner Bros. Discovery Inc. (WBD).

The media giants behind the new streaming service, who may not be done adding broadcast partners, 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 alleges.

"For decades, defendants have leveraged their iron grip on sports content to extract billions of dollars in supra-competitive profits from distributors and consumers," said FuboTV (FUBO), which said it is being charged above-market prices and risks losing content rights when the new venture launches. "Defendants earned many of these profits by 'bundling' their commercially critical sports content with other, less desirable content - forcing sports fans to purchase channels they did not want."

The new sports-streaming service would carry 14 networks, including ESPN channels, ABC, TNT and TBS, and Fox's broadcast network and sports cable channel.

The new service is expected to impact internet-TV bundles such as Fubo and Alphabet Inc.'s (GOOGL) (GOOG) YouTube TV, which cost less than cable TV but are expected to be pricier than this new service. The new service could approach $50 a month, according to the Wall Street Journal. Fubo's English-language packages range from $79.99 to $99.99 a month.

Since the new venture was announced on Feb. 6, FuboTV's stock has hemorrhaged: For the year, it is down 37%.

FuboTV, Disney, WBD and Fox were not immediately available for comment.

-Jon Swartz

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02-20-24 1538ET

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