Boy meets girl. Boy sues girl over alleged anti-competitive practices. Boy surprised by girl’s response. Fubo and Warner Bros. Discovery’s relationship has taken a turn, resulting in the loss of several channels including Discovery, HGTV, Food Network, TLC, TNT, TBS, and truTV.
In the world of carriage agreements, Fubo claims to have offered market rates for content, while Warner Bros. Discovery purportedly demanded above-market rates without negotiating in good faith. Fubo sees this as an abuse of market power that restricts consumer choice.
The dispute also stems from a lawsuit filed by Fubo against WBD, Fox, and Disney over a planned sports streaming service. Fubo alleges that this new service threatens its business by combining sports rights under one platform, potentially impacting its user fees and marketing budget.
Warner Bros. Discovery responded by stating their willingness to negotiate a fair agreement, offering an extension without price increases. Fubo’s decision to drop the networks has been met with disappointment.
Fubo’s first-quarter 2024 earnings will be announced on May 3, with subscriber numbers expected to be updated. Despite finishing 2023 with 1.618 million paid subscribers, Fubo still lags behind competitors like Sling TV and Hulu With Live TV, with YouTube TV leading the market with over 8 million subscribers.
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