A judge has issued a temporary injunction against the sports streaming platform Venu, ruling in favor of Fubo due to concerns over potential antitrust violations.
Editor Thenews24.net
2 min read
A U.S. judge has issued a temporary injunction preventing Disney, Warner Bros. Discovery, and Fox from launching their new sports streaming service, Venu, as revealed in court documents. This decision comes in response to a lawsuit filed by Fubo TV, just weeks before the NFL season begins. Fubo, which offers an internet TV bundle similar to traditional pay TV packages, argued that Venu would be anticompetitive and harm its business. Following the court’s decision, Fubo’s stock rose by 16%.
Fubo’s CEO, David Gandler, hailed the ruling as a win for both the company and consumers, emphasizing that it would promote a more competitive market for sports streaming. The joint venture for Venu was announced by Warner Bros. Discovery, Fox, and Disney’s ESPN in February, prompting Fubo to file an antitrust lawsuit shortly thereafter.
Despite the court’s ruling, the three media companies plan to appeal, arguing that Fubo’s claims lack legal merit and that Venu would actually increase consumer choice. Venu had announced a subscription price of $42.99 per month, offering a wide range of live sports content from its parent companies, including major leagues and college sports, as well as access to 14 traditional TV sports networks and ESPN+.
Judge Margaret Garnett noted that the three companies control a significant portion of U.S. sports broadcasting rights, making their joint venture particularly dominant. Other major holders of U.S. sports rights include Paramount Global’s CBS and Comcast’s NBC, with streaming services like Amazon’s Prime Video also entering the live sports market.
Traditional pay TV providers have been losing subscribers to streaming services, which has led to rising costs for companies like Fubo. The lawsuit argued that Venu’s launch would further harm competitors like DirecTV and Dish, who supported Fubo in the case.
Representatives from DirecTV and EchoStar’s Dish praised the court’s decision, highlighting the potential negative impact of allowing major content providers to favor their own streaming services over third-party distributors. The ruling is seen as a significant victory for competition in the video marketplace.
