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FuboTV (NYSE:FUBO) on Wednesday highlighted the impact that a new joint-venture sports streaming service between Walt Disney (DIS), Warner Bros. Discovery (WBD) and Fox (FOX) (FOXA) could have on fair market competition.
FUBO’s comments come after the stock suffered its worst intraday decline since early November 2021. Shares of the company fell 22.71% to earlier close at $1.94.
The new planned sports-only streamer between the heavyweight media companies could pose a big threat to FUBO’s sports-focused streaming service, with the new offering including options not available on FuboTV (FUBO).
“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,” FuboTV said in a statement.
“We have already seen that 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,” the company added.
Disney (DIS), Warner Bros. Discovery (WBD) and Fox’s (FOX) (FOXA) announcement was met with tempered optimism on Wall Street on Wednesday. Analysts recognized that the streaming service was a new approach to battle the rising costs of sports rights, but remained wary until more details on the offering emerged.
TV broadcaster Gray Television (GTN) also released a statement on the joint-venture sports streaming service, saying that the offering could be a “significant opportunity to expand the pay-TV ecosystem.”
“Local affiliated stations not only carry nationally televised sports but also provide local sports coverage … We believe that including ABC and Fox stations in a new virtual multichannel video programming service could offer benefits to viewers, their local communities, and local broadcasters,” Gray (GTN) said.
“Gray (GTN) welcomes any venture that expands the reach of local broadcasting stations, which in turn supports the ability of local stations to maintain trusted local news operations that benefit everyone,” the company added.