fuboTV stock got slammed today. What Disney, Fox, and Discovery have to do with it.

Shares of streaming service fuboTV (NYSE: FUBO) got smacked down today -- at one point in the day sliding a disheartening 28% and closing at $1.94, a 23% drop. The company offers a streaming service for live sports. And news broke yesterday that competition in this space is about to become much more fierce.

Competition is coming for live sports streaming

As of the third quarter of 2023, fuboTV had nearly 1.5 million paying subscribers to its sports-centric service, which was a healthy 20% year-over-year increase. But it may not be so easy to attract subscribers in the future. On Feb. 6, Walt Disney, Fox, and Warner Bros. Discovery announced a joint venture to create their own sports streaming service.

The announced joint venture has rights to the biggest sports properties, including professional football, professional basketball, college sports, and more. Simply put, this new streaming service -- expected to launch this fall -- will be attractive to anyone looking to switch from cable and still have access to live sports.

What does this mean for fuboTV?

The forthcoming streaming service from Disney, Fox, and Warner Bros. Discovery isn't necessarily guaranteed to be successful -- these companies have yet to announce pricing, which is one factor that could hinder adoption. That said, given the sports properties this trio brings to the table, it's hard to envision where fuboTV fits in the streaming ecosystem from here.

Even as the largest sports streaming service in town, fuboTV hasn't been a lucrative business opportunity to date. It costs a lot to get the rights to stream sports, which has left the company with slim gross profits even in good quarters.

I've long felt like fuboTV was fighting an uphill battle. But things don't seem to be getting any easier in light of this news.

Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney, Warner Bros. Discovery, and fuboTV. The Motley Fool has a disclosure policy.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

Offer from the Motley Fool:Should you invest $1,000 in fuboTV right now?

Before you buy stock in fuboTV, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and fuboTV wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 6, 2024