Fubo’s earnings call was on Tuesday. Unsurprisingly, CEO David Gandler used part of his opening remarks to rail against Venu Sports, the upcoming streaming venture between Disney, Fox, and Warner Bros. Discovery.
In his comments , Gandler said the three companies “control 80% of the premium sports market” (though what he means by that is unclear) and that they’re attempting to “limit competition.”
“Fubo is focused on delivering value and expanding our relevancy to consumers in a fast-changing environment. Consumers benefit from a market with healthy competitive dynamics. We continue to fight for competition and better prices in a market in disruption, contrasting with the Walt Disney Company, Fox Corporation, and Warner Brothers discovery. Their JV attempts to circumvent the need for regulatory approval, while still giving these partners control of 80% of the premium sports market.
“The JV claims to solve the issue of bulky cable bundles, but we believe its primary goal is to limit competition, boosting partners’ profits synthetically, and leading to steep price hikes for consumers, similar to those seen with their SVOD services. Consumers passionate about sports content, but frustrated with high prices and inflexible bundles, need multiple streaming options with competitive pricing.
“Fubo, like all distributors, have the right to fairly compete in the sports streaming market. A fair market would force the JV partners to compete against each other in the licensing of sports channels to pay-TV platforms, virtual and traditional, as well as with other market participants further downstream in the distribution space. This will foster competition, benefiting customers with better prices and choices.
“Our preliminary injunction hearing to prevent the JV’s launch goes before the U.S. District Court, Southern District of New York, starting today. We appreciate the support we have received from across the spectrum. We continue to be encouraged by earlier reports that the Department of Justice is looking into the JV.
“And an increasing number of high-profile Capitol Hill lawmakers, public interest groups, and other content distributors are alarmed and have weighed in on the negative impact that JV would have for consumers. We continue to strongly believe in the merits of our case and look forward to going before the judge this week.
In the call , Fubo announced 1.45 million subscribers and $382.7 million in North American revenue for the second quarter, both up double digits from last year. However, both marks were down from the first quarter , which ended with 1.511 million subscribers and $394 million in North American revenue.
Fubo’s injunction hearing against the three companies began Tuesday . There, the company claimed Venu “would drive away competitors and force consumers to pay higher prices to watch live events.”
[ Seeking Alpha ]
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