In a letter sent to the Chief Executive Officers of Walt Disney Company, Warner Bros. Discovery and FOX, House Judiciary Committee Ranking Member Jerrold Nadler and Representative Joaquin Castro (D-TX) have raised concerns about the pricing and intent behind the new joint sports streaming venture between the three companies. The JV, which was announced in February and is expected to launch this fall, unites the three biggest players in the sports streaming industry. Together, they control 80 percent of all sports streaming content.
As programmers, these companies have significant influence over pricing in the live sports TV ecosystem. They negotiate content licensing deals with leagues such as the NFL and NBA for media rights to sports events, as well as determine the terms under which video distributors may license their sports channels.
Nadler and Castro are concerned that this consolidation could lead to higher prices for consumers and less fair licensing terms for leagues and video distributors. They have requested more information about the JV’s intent, pricing strategy, organizational structure, and how it will affect competition in the marketplace.
To assess the impact of this joint venture on competition and consumers, Nadler and Castro have asked each company to respond to a series of questions by April 30th via email. The Department of Justice has been instructed to receive a copy of their replies as well. A full copy of their letter can be found here: [link].
