FuboTV stock took a hit on Wednesday following the announcement of a partnership between Walt Disney and several media giants to create a sports streaming service.
The news caused FuboTV shares to plummet by 27% on Wednesday, reaching a price of $1.85. FuboTV is a streaming platform that primarily focuses on sports content.
If the shares finish at this level, it would mark the largest percentage decrease since June 2019 and result in the lowest close since June 2023.
No Immediate Response
FuboTV has not yet responded to a request for comment.
Disney’s Joint Venture
Disney revealed on Tuesday that its subsidiary ESPN, Fox, and Warner Bros. Discovery have reached a preliminary understanding to form a joint venture aimed at developing a sports streaming platform. This upcoming offering, set to launch in the fall, will be accessible to consumers through a new app and can be bundled with existing Disney+, Hulu, or Max subscriptions.
Enhanced Streaming Experience
Raymond James analyst Ric Prentiss highlighted the limitations sports fans face in the streaming world compared to traditional cable. He stated that streaming has been the most disadvantaged in terms of providing fans with access to every game, ease of finding games, and the ability to switch between them. However, Prentiss believes that this new joint venture will address these challenges and improve the overall customer experience in sports streaming.
Implications for FuboTV
The introduction of this new service is expected to decrease customer churn for Disney and Warner Bros. streaming platforms. This may pose challenges for FuboTV.