A U.S. judge has temporarily blocked Disney, Warner Bros. Discovery, and Fox from launching their new sports streaming service, Venu, following a lawsuit filed by Fubo TV. The injunction, granted just weeks before the start of the National Football League season, is a significant development in the ongoing legal battle over the service’s potential anticompetitive impact.
Fubo TV, an internet TV bundle service, alleges that Venu would unfairly disrupt its business and limit competition in the sports streaming market. Fubo’s stock surged by 16% on the news of the injunction. Fubo CEO David Gandler hailed the ruling as a win for consumers, stating, “This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.”
The joint venture between Warner Bros. Discovery, Fox, and Disney’s ESPN was announced in February, with plans to launch Venu offering comprehensive live sports rights, including those for the NBA, NHL, MLB, and college sports. The service would also provide access to 14 traditional TV sports networks and ESPN+. Venu was priced at $42.99 per month, a cost reflective of the expensive nature of live sports streaming.
The court’s decision comes amid increasing scrutiny from lawmakers, including Senators Elizabeth Warren and Bernie Sanders, and Representative Joaquin Castro. They have urged for a thorough review of Venu’s potential anticompetitive effects.
In response to the ruling, the media companies expressed their disagreement and announced plans to appeal. They argue that Fubo’s claims are incorrect and that Venu is a pro-competitive option that aims to enhance consumer choice. “We believe that Fubo’s arguments are wrong on the facts and the law,” said the joint statement from Warner Bros. Discovery, Fox, and ESPN.
Judge Margaret Garnett noted in her ruling that Disney, Fox, and Warner Bros. Discovery collectively control a significant portion of U.S. sports rights, approximately 54% of all sports rights and at least 60% of nationally broadcast sports rights. “Together, they are dominant,” Garnett stated, highlighting concerns about the combined power of the companies in the sports broadcasting market.
Fubo’s lawsuit, supported by satellite TV providers DirecTV and EchoStar’s Dish, argues that Venu could harm competition by giving preferential treatment to content licensed by the joint venture. The case reflects broader tensions in the evolving landscape of sports media and streaming services.
EchoStar’s Jeff Blum praised the court’s decision, calling it a “major victory for consumers and competition.” DirecTV echoed this sentiment, emphasizing the ruling’s importance in maintaining fair competition in the video marketplace.
