Top US Congressman Question Disney, Fox, Warner Bros Discovery Proposals For New Sports Streaming Platform
In what looks like an attempt to put the brakes on the proposed sports streaming service from Disney, Fox, and Warner Bros Discovery, two US Congressmen have written a letter to the three companies requesting more information on the planned venture. The letter from Democratic Congressman Jerry Nadler and Joaquin Castro raises questions about the potential impact on competition and consumer pricing, and has been sent to the Department of Justice (DOJ). Key concerns centre on how the joint venture would affect access, competition, and choice in the sports streaming market, and there are 19 specific questions seeking information on areas such as relevant markets, future subscribers, pricing models, and anti-competitive practices. It remains to be seen how the companies involved will respond to the letter, but replies are requested by April 30th, 2024.
In February of this year, Disney, Fox, and Warner Bros Discovery announced their plans to create a joint streaming service focused on streaming live sports games. The companies say the new platform will offer streaming content from Fox Sports, ESPN, and other sports networks owned by the three media conglomerates. However, the proposal has attracted criticism and raised concerns about anti-competitive practices in the market. Now, two prominent US Congressmen have written a letter to the companies, asking for more information about the plans for the streaming service.
The letter from Congressman Jerry Nadler and Joaquin Castro raises questions about the potential impact on competition and consumer pricing. It remains to be seen how the companies involved will respond to the letter, but replies are requested by April 30th, 2024. The creation of a joint streaming service is a significant development in the media industry, and the decision by these three giants to work together has caused a stir. Given the companies' significant influence over pricing across the live sports TV ecosystem, there are legitimate concerns about how this new offering would affect access, competition, and choice in the sports streaming market. The joint venture raises questions about how this new offering would affect access, competition, and choice in the sports streaming market.
Without more complete information about the pricing, intent, and organization of this new venture, we are concerned that this consolidation will result in higher prices for consumers and less fair licensing terms for upstream sports leagues and downstream video distributors. The letter from Nadler and Castro is the latest development in what is becoming a saga around the proposed sports streaming service. The three companies involved have yet to respond to the letter, but with the deadline for replies set for April 30th, 2024, we may not have to wait too long to hear more.
Aside from the regulatory concerns, there are also questions about the potential scale of the offering. With neither Paramount Global nor NBCUniversal on board with Disney, Fox and WBD, crucial sports rights holders are missing from the proposed platform. Hints from Murdoch have suggested the service could cost more than $50 per month, with 5 million subscribers targeted in the first five years. This would put the service in direct competition with Netflix, Amazon Prime Video, and Apple TV+, all of which have already made moves to stream live sports content. As the streaming market continues to evolve, it's clear that live sports content remains a key area of focus for many companies. It remains to be seen if the proposed service from Disney, Fox, and Warner Bros Discovery will be able to compete in what is sure to be a very competitive space.