US lawmakers are positioning to launch an investigation on the proposed joint streaming venture between Disney, ESPN, FOX, and Warner Bros. for a potential streaming service price hike.
In a letter sent to the companies' CEOs on Tuesday, House Judiciary Committee Member Jerrold Nadler and Texas Rep. Joaquin Castro are "seeking more information" on whether the venture will reduce competition and harm consumers.
(Photo : Drew Angerer/Getty Images)
The letter highlighted concern about Disney taking control of at least 80% of all sports streaming content, essentially giving the streaming giant "tremendous influence over pricing across the live sports TV ecosystem."
Disney first announced the planned joint venture to offer shows and movies across the four studios all in one platform. The unnamed venture is expected to roll out by this year's Fall.
Disney CEO Bob Iger touted the new sports streaming service that will rise from the venture as a "major win for sports fans."
Further details on the new streaming service, like pricing and exact content offered, have yet to be disclosed.
Also Read: Disney+ May Soon Bring Dedicated Cable-Style Channels for Star Wars, Marvel Shows
Streaming Services Becoming More Costly
The representatives' letter came in as Disney started cracking down on password-sharing and rolling out ad-free versions at a higher subscription price.
Similar moves from other streaming services like Netflix have been negatively received by many of its users for driving up costs for the video-streaming platform.
Despite the backlash, Disney has reported an increased user count since last year thanks to its ad-supported subscription version.
Related Article: Disney Plus Starts Password-Sharing Crackdown This June Starting With Few Countries First
How to Reduce Expenses from Streaming Services?
While video-streaming platforms are driving up their prices for viewers to enjoy their favorite shows and movies easily, it does not mean people can still find ways to reduce costs legally.
Many users on social media are now urging other people to subscribe to a streaming service one at a time to prevent bills from piling up in the same month.
Exclusive titles usually remain on the platform permanently, while licensed content stays for months.
Meaning, people can watch more if they binge-watch shows rather than stay tuned on just one platform as they await the release of their favorite shows and movies.
