Drudge Retort: The Other Side of the News
Wednesday, January 15, 2025

Early last year, streaming company Fubo filed an antitrust lawsuit against Disney, Fox, and Warner Brothers Discovery after the three companies decided to launch their own joint streaming live sports venture. Fubo, in the lawsuit, claims the collective power of the three companies would stifle competition in the sports streaming space, ultimately driving up costs for consumers and lowering product quality.

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... "Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers, and cheat consumers from deserved choice," Fubo CEO David Gandler said last year.

In August Fubo won an injunction, but that was then and this is now.

This week, Disney settled the allegations in the most American of ways: additional corporate consolidation. The company has announced it's taken a 70% ownership stake in Fubo, which immediately proceeded to drop its antitrust lawsuit. When Ars reached out to Fubo TV, the company's logic had taken a mysterious 180 thanks to the giant bag of money received from Disney:

"The definitive agreement that Fubo signed with Disney today will actually bring more choice to the market. As part of the deal, Fubo extended carriage agreements with Disney and also Fox, enabling Fubo to create a new Sports and Broadcast service and other genre-based content packages."

So Fubo execs got a big bag of money, and they'll be fine over the short term. Until the consolidated power of Disney, Fox, and Warner Bros Discovery uses their consolidated leverage to ultimately drive them out of the market in a few years, precisely as Fubo originally predicted. At which point these executives will have moved on to something else anyway.


#1 | Posted by LampLighter at 2025-01-15 01:25 AM | Reply

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