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Fox, Disney, and Warner Bros. Discovery announced back in February that they would be joining forces to create a joint streaming bundle called Venu Sports.
The plan for the new venture is to allow viewers to watch sports on networks like ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, Fox, FS1, FS2, BTN, TNT, TBS, truTV and ESPN+ all in one streaming service app. (Sorry, sports fans who are Peacock and Amazon Prime customers.)
Naturally, Venu Sports combining all of those channels into one streaming service drew the attention of those concerned about the violation of antitrust laws… like the United States government.
After all, as we reported following the announcement, Citi analysts estimated that if this streaming bundle happens, Venu Sports would control approximately 55 percent of all U.S. sports rights.
Fast forward four months and Venu Sports owners Disney, Fox, and Warner Bros. Discovery are already being sued by Fubo, and now Congress is getting involved.
In a scathing letter made public last week, Congressmen Jerry Nadler and Joaquin Castro are looking for some answers to several questions regarding Venu Sports, after previously meeting with Venu Sports principals on March 31.
“Although we appreciate your prompt reply and willingness to meet with our staff, your responses so far are insufficient,” the lawmakers wrote. “We write to renew our request for information about your joint venture.
“Overall, we still have not received answers about the firewalls your companies may implement to prevent collusion; the precautions you may take to ensure consumer privacy; or the methods you may use to determine pricing of the new service.
“Some of the vague assurances you have provided strike us as contradictory. For example, we find it difficult to understand how your companies can both promise not to share competitively sensitive information and also evaluate the success of the joint venture on a company-by company basis.
“Your repeated assertion that the details of the joint venture have not yet been finalized is also hard to believe, given that the joint venture is projected to roll out in mere months.”
The lawmakers concluded their letter by stating, “Your companies exert unmatched control over the entire sports media ecosystem. Without care, your joint venture has the potential to reshape this already-concentrated space … We urge your companies to provide Congress and the public with more information to allow the full impact of the proposed streaming service to be evaluated.”
Disney, Fox, and Warner Bros. Discovery now have until June 21 to respond. Stay tuned.