Walt Disney Co (NYSE:DIS), Fox Corp (NASDAQ:FOX) (NASDAQ:FOXA), and Warner Bros. Discovery Inc (NASDAQ:WBD) are under scrutiny by the Justice Department over their proposed new streaming service, which has raised concerns about potential harm to consumers, media competitors, and sports leagues.
The regulatory review will commence once the joint venture agreement is completed, though the companies have not formally notified of this pending examination.
The service plans to amalgamate content from Disney’s ESPN and ABC networks, Fox, and Warner channels such as TNT and TBS, potentially controlling around 55% of US sports rights by cost, Bloomberg reports.
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Objections have been voiced by smaller cable providers and at least one Internet TV service, arguing the service could inflate prices and limit sports leagues’ rights-selling options.
This initiative falls into a …