The Competition and Markets Authority has opened an investigation into the anticipated joint venture between Warner Bros. Discovery (WBD) and BT for the operation of the BT Sport channels.
It will study whether the venture would lead to a “substantial lessening of competition”.
The CMA has advised both BT and Discovery of its plans. The initial Phase 1 period will complete by 28 July 2022, when a decision on whether to refer the merger for a Phase 2 investigation will be made.
The new business would be a 50/50 joint venture, bringing together BT Sport with Eurosport UK. The combination would remain committed to retaining BT Sport’s existing major sports broadcast rights, while BT Sport customers would get access to Discovery’s sport and entertainment content, including the discovery+ app.
Broadcast operations would transfer to WBD.
On the face of it the UK sports market has a number of players, and while BT Sport and Sky Sports have the lion’s share of the premium rights there is increasing competition from DAZN, Premier Sports and Viaplay.
The combined BT Sport/Discovery venture will hold a rights portfolio that includes UEFA Champions League, UEFA Europa League, the Premier League, Premiership Rugby, UFC, the Olympic Games, tennis Grand Slams featuring the Australian Open and Roland-Garros, cycling Grand Tours including the Tour de France and Giro d’Italia and the winter sports World Cup season.
