US Representatives Express Concerns About Anticompetitive Behavior

Congressional Scrutiny Over Disney/ESPN, Fox Corp. and Warner Bros. Discovery Sports-Streaming Joint Venture

A joint venture between Disney/ESPN, Fox Corp., and Warner Bros. Discovery in the sports-streaming industry has caught the attention of Congress. Representatives Jerrold Nadler and Joaquin Castro have sent a letter to the CEOs of the three companies, expressing concerns about the competitive implications of the proposed partnership.

The letter, dated April 16, questions the impact of the joint venture on pricing, access, competition, and choice in the sports streaming market. Nadler and Castro are seeking answers from Disney’s Bob Iger, Fox’s Lachlan Murdoch, and Warner Bros. Discovery’s David Zaslav by April 30.

The joint venture, set to debut in the fall of 2024, will combine ESPN+ and the companies’ linear TV networks carrying sports programming. The venture, dubbed “Spulu,” excludes NBCUniversal and Paramount Global/CBS. However, concerns have been raised about potential consumer harm and antitrust violations.

Despite the scrutiny, Disney CEO Bob Iger remains optimistic about the venture, emphasizing its benefits for sports fans. The companies have appointed former Apple TV+ exec Peter Distad as the JV’s CEO, with expectations to reach 5 million subscribers within five years.

The Justice Department is reportedly planning to review the joint venture, while internet pay-TV provider Fubo has filed a lawsuit to block its launch. With regulatory challenges ahead, the future of the Disney/ESPN, Fox Corp., and Warner Bros. Discovery sports-streaming joint venture remains uncertain.