Sens. Elizabeth Warren, Bernie Sanders and Rep. Joaquin Castro sent a letter to the Justice Department asking it to investigate and potentially save Disney, Fox and Warner Bros. to create a joint venture that would combine the resources of ESPN and Fox Sports. TNT Sports on a direct-to-consumer streaming service called Venu Sports.
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In the letter received through The Athletic, the three Democrats suggested that the Justice Department review Venu Sports “and oppose it if it violates antitrust or telecommunications legislation or regulations. “Also that the fact that Venu is described as a joint venture deserves not to be avoided from coming under scrutiny.
Venu Sports is expected to launch soon at a price of $42. 99 per month. Subscribers may not need a cable subscription and will also be able to access all programming and games from the 3 networks and their subsidiaries (such as ABC and Fox). like ESPN, the network’s other direct-to-consumer service that offers more specialized sports.
ESPN plans to make its network available directly to consumers as a standalone product next year, which, according to The Athletic, is expected to charge between $25 and $30 per month.
Lately, viewers can subscribe to YouTube TV for around $70 to $75, which includes all three networks as well as the other major streaming entities, NBC and CBS. Both networks also have their own direct-to-consumer streaming products.
Fox CEO Lachlan Murdoch reiterated his company’s earnings announcement this week that it expects Venu Sports to have five million subscribers by 2029. Although the deal is a deal between the trio, Venu Sports’ subscription earnings are based on the same formula the networks get from cable. and satellite providers. ESPN, which earns more than $10 per cable subscriber, is expected to earn the highest percentage of revenue from Venu Sports.
A Venu Sports spokesperson had no comment upon contact.
In the letter from Senators Warren, Sanders and Rep. Castro, the trio “expressed serious” considerations about Venu Sports, saying it is “on the verge of controlling more than 80% of nationally broadcast sports and some of all national sports content, thereby being in a position to exert a monopolistic force over televised sports. The market strength of its three giant parent corporations would allow it to discriminate against its competition and increase costs for consumers. “
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Venu Sports already faces a legal challenge from Fubo, a direct-to-consumer provider that offers ESPN and Fox Sports, but TNT. Fubo is seeking to invoke an initial injunction in Manhattan district court to block the service before it begins.
Senators and congressmen appear to agree with Fubo’s premise that ESPN, Fox Sports and TNT do not offer other platforms the opportunity to combine the trio, noting that Disney, ESPN’s parent company, groups its “other non-critical and low demand”. channels. ” and calls for competing sports streaming platforms to purchase and demonstrate the full package for access to ESPN. The letter also argues that the joint venture is inconsistent with the goals of the FCC’s national ownership limit, which prevents a station from reaching more than 39% of television households.
One of ESPN’s counterarguments has been that this phenomenon affected approximately one hundred million families in 2011 and now affects 66. 5 million families, according to the latest Nielsen figures. It wants to locate new consumers who are cutting the cord or have never had cable or similar deals, so it offers several pricing tiers ranging from $25 to $75 per month. Fox Sports does not offer any other paid streaming services, while TNT Sports is part of the Max platform that offers, among other channels, HBO.
The letter concludes “that the DOJ and FCC thoroughly review this transaction and take immediate action to block it if it violates antitrust law or does not serve ‘the public interest, convenience, and necessity. ‘”
Read the full letter here.