As a long-time sports enthusiast and a follower of the ever-evolving landscape of streaming services, I find myself growing increasingly concerned about the proposed Venu streaming bundle. With my wallet already stretched thin from subscribing to various streaming platforms, the addition of another service that seems intent on further consolidating the market for live sports is less than appealing.
Regulators are intensifying their examination of sports streaming service Venu, hoping to prevent the formation of this partnership.
As a passionate supporter, I penned a letter urging the Justice Department and Federal Communications Commission to investigate Venu, the upcoming streaming service by Disney, Fox, and Warner Bros. Discovery. The concern lies in their intent to pool sports licensing rights, potentially leading to increased prices and an even more consolidated market for live sports. Senators Elizabeth Warren (D-Mass.) and Bernie Sanders (D-Vt.), alongside Rep. Joaquin Castro (D-Texas), echo this apprehension about the potential impact on consumers and competition in the industry.
The streaming package is set to debut this fall at a monthly rate of $42.99. For an entire year, subscribers will maintain this price and gain access to several live, continuous channels such as ESPN, Fox, ABC, TNT, and TBS, along with ESPN+. These networks hold rights to various sports leagues including the NFL, NBA, MLB, NHL, college sports, and professional tennis.
The service is planned to go head-to-head with YouTubeTV, a monthly subscription that typically costs around $70. It offers additional features such as live sports broadcasts from NBC and CBS, among others. However, it recently faced legal action in February from Fubo, who took media giants to court over their joint venture.
The lawsuit claims that Fubo is being compelled to broadcast multiple expensive, non-sports channels due to licensing conditions for sports rights from various companies, allegedly to suppress competition. In their correspondence, the legislators express similar worries. They argue that Venu doesn’t grant competitors the choice to air just live sports; instead, they link a package of less attractive channels with sports content.
As a sports enthusiast, I can’t help but appreciate the significance of ESPN in the world of streaming platforms. When Disney groups ESPN with their other channels, they essentially hold the upper hand in maintaining a competitive edge over others like Venu. This is because Venu has the choice to exclusively carry ESPN, while competitors are hit with higher prices for accessing that bundle.
As a gamer, I often encounter situations where game streaming platforms, who hold exclusive rights to popular games, use their powerful position in the market to make content distributors buy package deals that include both sought-after and less appealing games. In essence, this bundling strategy is similar to a merger, enabling them to unite their control over game rights to sell larger packages and attract a broader audience.
Lawmakers argue that the joint venture between these companies could lead to increased prices due to reduced competition in licensing deals. They point out that, according to studies mentioned in their letter, individuals typically spend around $552 per year on streaming services, with 44% stating costs have risen over the past year due to more bundling and consolidation. In the coming year (2023), the cost of major streaming platforms is projected to rise by approximately 25%. By bringing over half of all significant U.S. sports events onto a single platform, Disney, Fox, and WBD could potentially dominate the market, setting prices that exclude competition and establish a minimum price threshold. This situation might result in pricier games, fewer viewing options, and less variety in telecasts.
Alongside concerns over potential breaches of antitrust regulations and recently updated merger guidelines that aim to prevent further concentration in already dominant industries, lawmakers contend that this joint venture between Disney (owner of ABC and eight local TV stations) and Fox (with a broadcasting arm and 29 stations across 18 markets) violates FCC rules prohibiting a single company from controlling stations that reach over 39% of households. Through the Venu joint venture, these media titans plan to distribute more than 80% of nationally-broadcast sports games via local stations affiliated with each network.
The package does not feature CBS Sports or NBC Sports, implying that numerous NFL and college games won’t be accessible through this service. Moreover, as the NBA has struck fresh agreements with NBC and Amazon, Venu is expected to experience a significant reduction (approximately half) in its pro basketball game offerings.
In the legal action started by Fubo, a federal magistrate is presently evaluating if a temporary order should be granted to halt Venu’s actions.
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2024-08-07 21:26