Today, House Judiciary Committee Ranking Member Jerrold Nadler and Representative Joaquin Castro (D-TX) sent a letter to the Chief Executive Officers of the Walt Disney Company, Warner Bros. Discovery, and FOX. They are seeking more information about the companies’ new joint sports streaming venture (“JV”). The unnamed JV, which was announced in February and is expected to debut this fall, unites the three most dominant programmers in the sports streaming space. Together, they own the rights to 80 percent of all sports streaming content.
The members explain that as programmers, these companies have a lot of influence over pricing in the live sports TV ecosystem. They negotiate content licensing deals with sports leagues such as the NFL and NBA for media rights to sports events. Additionally, they determine the terms under which video distributors may license their sports channels.
Concerned about the potential impact of this consolidation on consumers, the members are seeking more information about the pricing, intent, and organization of this new venture. They are worried that this consolidation could lead to higher prices for consumers and less fair licensing terms for sports leagues and video distributors.
To assess the impact of the JV on competition and consumers, the members have asked the companies to respond to a series of questions about the JV’s intent, pricing, licensing, and organizational structure. The companies have until April 30 to provide their responses via email, with instructions to copy the Department of Justice on their reply.
For a full copy of the letter sent by Nadler and Castro, click here.