The launch of Venu Sports, a planned streaming service by Disney, Fox, and Warner Bros. Discovery, has been halted following a federal judge’s ruling in favor of FuboTV.
U.S. District Judge Margaret M. Garnett of the Southern District of New York granted FuboTV’s request for a preliminary injunction, citing the likelihood that Fubo would successfully argue that the Venu Sports joint venture violates antitrust laws, specifically the Clayton Act.
FuboTV Challenges Bundling Practices
The injunction stems from FuboTV’s antitrust complaint, which accused the three media giants of engaging in a prolonged campaign to stifle Fubo’s sports-centric streaming service. Fubo argued that the proposed Venu Sports bundle would put competitors like Fubo at a severe disadvantage by monopolizing a significant portion of sports broadcasting rights, effectively limiting consumer choices.
The planned Venu Sports service was set to launch in the fall of 2024, offering a subscription for $42.99 per month. The service promised extensive sports content from networks including:
- ESPN: Including ESPN2, ESPNU, SEC Network, ACC Network, and ESPNEWS
- Fox Sports: Featuring channels like FS1 and FS2
- Warner Bros. Discovery: Offering sports coverage from TNT, TBS, and truTV
Additionally, subscribers would have access to ESPN+ and the option to bundle the service with Disney+, Hulu, and Max. The joint venture aimed to consolidate sports content across the three companies’ portfolios, presenting itself as a one-stop destination for sports fans.
However, Fubo’s lawsuit, filed shortly after the announcement of Venu Sports in February 2024, argued that the bundle would lead to anticompetitive practices, forcing Fubo to either pay exorbitant licensing fees or lose access to critical sports content. Fubo claimed that these practices were designed to maintain the dominance of Disney, Fox, and Warner Bros. Discovery in the sports streaming market.
Judge Garnett’s 69-page ruling highlighted the antitrust concerns raised by the Venu Sports joint venture, noting that it would create a scenario where the new service could become the sole option for consumers interested in multiple live sports channels without paying for additional entertainment content they do not want. The judge pointed out that the same companies pushing for Venu had previously used bundling tactics to create a market void that their joint venture now seeks to exploit.
The court’s decision was met with approval from FuboTV and others in the industry, including DirecTV and Dish, who supported Fubo’s stance. Lawmakers, including Sen. Elizabeth Warren, Sen. Bernie Sanders, and Rep. Joaquin Castro, had also expressed concerns about the potential monopolistic implications of the joint venture, urging federal regulators to scrutinize the deal.
In response to the ruling, FuboTV co-founder and CEO David Gandler called the decision a victory for consumers and reiterated the company’s commitment to advocating for a fair and competitive marketplace. Gandler emphasized that the legal battle was far from over and criticized the longstanding anticompetitive practices of Disney, Fox, and Warner Bros. Discovery, which he argued have consistently undermined competition and consumer choice.
Venu Backers to Appeal the Ruling
The injunction delays the launch of Venu Sports, likely until at least 2025, as the case continues to unfold. The three media companies have indicated their intention to appeal the ruling, maintaining that the Venu Sports service is a pro-competitive option designed to enhance consumer choice by catering to underserved segments of the market.
Featured Image courtesy of Patrick Smith/Getty Images
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