Disney’s Joint Sports Streaming Venture Being Examined by Antitrust Regulators

 by Ray Keating

News/Analysis

DisneyBizJournal.com

February 16, 2024

 

“Big is necessarily bad” has been the mantra among antitrust regulators in Washington, D.C., for two consecutive presidential administrations now. And there has been plenty of anti-big business rhetoric flying from Congress as well.

That’s why when Disney-ESPN, Warner Bros. Discovery and Fox announced a joint sports streaming venture, DisneyBizJournal noted, “But one has to wonder if this type of joint venture will attract attention from Washington’s antitrust activist regulators.”

 

As noted in the press release from Disney, “The platform would aggregate content to offer fans an extensive, dynamic lineup of sports content, aiming to provide a new and differentiated experience to serve sports fans, particularly those outside of the traditional pay TV bundle. By subscribing to this focused, all-in-one premier sports service, fans would have access to the linear sports networks including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, as well as ESPN+.”

 

Well, guess what? Antitrust regulators are looking at this proposed joint venture.  

 

Reuters reported, “The U.S. Department of Justice aims to scrutinize a sports streaming platform planned by Walt Disney, Fox, and Warner Bros Discovery, over concerns it could harm consumers, sports leagues and rivals, Bloomberg Law reported on Thursday.”

 

As is almost always the case, it’s not consumers who are raising issues with government regulators, but instead, it’s about competitors in the marketplace who don’t like the proposed deal. It was noted by Reuters: “Fubo, a sports-focused streaming service, called for scrutiny of the new joint venture shortly after it was announced. In a Feb. 7 statement, Fubo said the media partners command ‘significant market share,’ reportedly controlling 60% to 85% of all sports content.” 

 

Hmmm, that’s a pretty wide margin, and it’s not clear how Fubo came to those percentages. Plus, antitrust is supposed to be about monopolies. A monopoly means one supplier, no close substitutes for the product, and high barriers to entry. That definition doesn’t fit this situation. But, again, D.C. regulators have adopted very expansive, activist views to the point that their actions aren’t really guided by a monopoly, or the threat of one; but instead, they’re guided by “bigness.”

 

Indeed, antitrust is supposed to be about protecting consumers. But consumers will decide if they like this joint venture or not. Indeed, that’s how markets work.

 

Nonetheless, regulators often have a different take, and we’ll see how this proposed joint sports streaming venture goes with the government.

 

__________

 

Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.

 

The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?

 

Support the Daily Dose of Disney with Ray Keating Podcast at https://www.buzzsprout.com/1724143. Subscribe at the $8 or $10 level, and get The Disney Planner: The TO DO List Solution by Ray Keating. Remain a supporter and you'll get a FREE BOOK by Ray Keating every six months going forward. Thanks!

 

The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.

 

Consider other books by Ray Keating, including…

 

• The Pastor Stephen Grant thrillers and mysteries. There are 18 books in the series now.

 

• Pre-order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist. Signed books here and Kindle editions here.

 

• Order The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist. Signed books here.  And Kindle and paperback editions here.

 

• The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks at RayKeatingOnline.com or paperbacks, hardcovers and Kindle editions at Amazon.com.

 

• Cathedral: An Alliance of Saint Michael Novel is at Amazon. 

 

• The Lutheran Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement, inspiration and consolation from the Christian faith.

 

• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com. 

 

Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.