Proactive Investors - Shares in sports streaming platform FuboTV (NYSE:FUBO) Inc dipped more than 13% in pre-market trading on Wednesday after news broke that rivals were to team up to launch a new joint service.
ESPN, Fox Corp (NASDAQ:FOXA) and Warner Bros Discovery Inc announced plans on Tuesday to launch a joint venture offering streams from a wide range of major sports leagues all in one place.
This is due to offer coverage of American football, basketball and baseball, alongside the likes of Nascar motor racing, soccer, golf, tennis, boxing and mixed martial arts.
Such a service would offer fresh competition for FuboTV in the live sports streaming market and could hinder future growth and pricing power, according to Roth MKM analysts.
Though pricing and the name of the new service are yet to be unveiled, the trio said it could launch as early as this year, with users also being offered access to other non-sport subscriptions through the app.
“We believe the service will provide passionate fans outside of the traditional bundle an array of amazing sports content all in one place,” Fox chief executive Lachlan Murdoch commented.
Shares in FuboTV fell 14.34% to US$2.15 ahead of Wednesday’s opening.