A federal judge has temporarily blocked the launch of Venu Sports, a joint sports streaming venture involving Warner Bros. Discovery, Disney, and Fox Corporation. The decision comes in response to a request from Fubo, a smaller rival sports streaming service, for a preliminary injunction against the forthcoming streamer. The judge’s ruling states that Fubo is likely to succeed in its claims that the joint venture would substantially lessen competition and restrain trade in the relevant market.
Fubo filed a lawsuit against the media giants in February, arguing that they were using their sports media rights to exclude competitors and dominate the market with a single bundle. In a joint statement, Disney, Fox, and WBD (CNN’s parent company) expressed their intention to appeal the judge’s ruling, stating that Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching viewers not currently served by existing subscription options. The Venu Sports service, priced at $42.99 per month, was set to offer access to a variety of sporting events from the companies’ portfolios.
Fubo’s stock rose over 17% following the news of the court’s decision. The company’s co-founder and CEO, David Gandler, described the ruling as a victory for both Fubo and consumers, emphasizing the importance of a competitive marketplace with multiple sports streaming options. A court date for the antitrust lawsuit has not yet been set. Traditional media companies have been shifting towards streaming services as more consumers cut the cord and opt for online streaming options.
Disney and Warner Bros. Discovery have invested billions into their streaming services, with Disney planning to launch a standalone ESPN streaming service next year. The leaders of major media companies have hinted at more bundling offers to simplify options and retain subscribers. When the Venu partnership was announced, key executives hailed it as an important step forward for the media business, emphasizing the potential for innovation and providing passionate fans with a variety of sports content outside the traditional bundle.
While WBD has integrated its live sports offerings into its Max streaming service, Disney plans to launch a standalone ESPN streaming service. A person familiar with the situation at Disney noted that Venu was just one part of a larger strategy, with potential for other creative bundles or distribution platforms in the evolving industry landscape. The impact of the court ruling on the future of Venu Sports and the broader streaming market remains to be seen. Oliver Darcy contributed to the reporting on this story.
