After sending a letter to top executives at Disney, Fox and Warner Bros. Discovery in April, questioning them about their Venu Sports joint venture, congressional Democrats Jerry Nadler and Joaquin Castro said they found the responses "insufficient."
So they sent a follow-up missive.
The most recent memo, dated June 7, claims the JV will unite the owners of 80% of all U.S. sports media content under one umbrella. And it could reduce competition, risk the privacy of users and lead to collusion.
Venu came under fire shortly after it was introduced in February. Virtual pay TV provider Fubo filed an antitrust lawsuit, claiming that the deal would hurt competition and inflate prices for viewers.
Other critics soon, including Nadler, Castro and U.S. Justice Department, which is also investigating the JV, soon joined in.
Also Read: Nearly 60% of Sports Fans Age 18-49 Say They'll 'Likely' Subscribe to Venu Sports
“We still have not received answers about the firewalls your companies may implement to prevent collusion,” they wrote. “The precautions you may take to ensure consumer privacy; or the methods you may use to determine pricing of the new service.”
The two congressmen added that the “vague assurances” Venu partners have provided thus far seem “contradictory. They said the lack of key details (like price and launch date) “hard to believe.”
“Your companies exert unmatched control over the entire sports media ecosystem,” they wrote. “Without care, your joint venture has the potential to reshape this already-concentrated space to the detriment of consumers, sports leagues, and third-party distributors.”
The new letter asks for answers to seven questions by June 21. Nadler and Castro also requested that the Department of Justice be copied on the response, as it reportedly plans to inspect the joint venture.
Representatives for Venu replied to the initial letter in late April, calling the service “pro-consumer, additive viewing option for sports viewers” that will address the increasingly “fragmented and complicated” sports-streaming landscape.
“Nothing will be exclusive to the new streaming service -- every linear network available on this new streaming service will continue to be available to consumers across all existing methods, including traditional cable, satellite TV, and streaming video platforms like Hulu+Live and YouTubeTV,” company executives wrote.
According to Venu partners, the service is set to launch this fall, with an expected engagement of 1 million subscribers by the end of the year, and 5 million within five years.
