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FuboTV (NYSE:FUBO) on Wednesday highlighted the impact a new joint venture sports streaming service between Walt Disney (DIS), Warner Bros. Discovery (WBD) and Fox (FOX) (FOXA) could have on fair competition in the market.
FUBO’s comments come after the stock suffered worst intraday decline since early November 2021. Company shares fell by 22.71% to close earlier at $1.94.
The new sports-only streamer planned between major 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 highlights a worrying trend where an alliance with significant market share, controlling 60-85% of all sports content, could dictate market conditions in a way that may not serve the interests broader consumers,” FuboTV said in a statement. .
“We’ve already seen that a consortium of incumbent competitors is a difficult undertaking and that streaming joint ventures rarely work. Additionally, we know that sports-only programming is very challenging,” the company added.
The announcement from Disney (DIS), Warner Bros. Discovery (WBD) and Fox (FOX) (FOXA) was greeted with moderate optimism on Wall Street Wednesday. Analysts acknowledged that the streaming service represented a new approach to combat the rising costs of sports rights, but remained cautious until more details about the offering emerged.
Broadcaster Gray Television (GTN) also released a statement on the joint venture’s sports streaming service, saying the offering could be “a significant opportunity to expand the pay-TV ecosystem.”
“Local affiliate stations not only broadcast nationally televised sports, but also provide local sports coverage… We believe that including ABC and Fox stations in a new virtual multi-channel video programming service could benefit viewers, their local communities and local broadcasters,” Gray (GTN) said.
“Gray (GTN) welcomes any initiative that expands the reach of local broadcasters, which in turn supports the ability of local stations to maintain reliable local news operations for the benefit of all,” the company added.