Advertisement

Federal judge blocks Venu Sports streaming launch to compete with Warner Bros., Fox, Disney

By Mike Heuer
Michigan head coach Jim Harbaugh raises the trophy as he stands with offensive MVP quarterback J.J. McCarthy after the Wolverines defeated the Alabama Crimson Tide 27-20 in the 2024 Rose Bowl NCAA in Pasadena, Calif., on Jan. 1, 2024. The planned launch of Venu Sports likely would make it harder for sports fans to watch events like this shown on ESPN. File Photo by SooHoo/UPI
Michigan head coach Jim Harbaugh raises the trophy as he stands with offensive MVP quarterback J.J. McCarthy after the Wolverines defeated the Alabama Crimson Tide 27-20 in the 2024 Rose Bowl NCAA in Pasadena, Calif., on Jan. 1, 2024. The planned launch of Venu Sports likely would make it harder for sports fans to watch events like this shown on ESPN. File Photo by SooHoo/UPI | License Photo

Aug. 17 (UPI) -- A federal judge granted sports-streaming service Fubo's request halt the planned launch of a rival sports-streaming service due to a potential restraint of competition.

Warner Bros. Discovery, Fox and Disney planned to launch their Venu Sports streaming service as the NCAA and NFL football seasons are about to begin, but the preliminary injunction temporarily stops the sports-only streaming service from starting.

Advertisement

Southern New York U.S. District Judge Margaret Garnett ruled Fubo likely would win its case accusing the proposed sports streaming service of substantially reducing competition and restraining trade in the sports-streaming market.

Disney owns ESPN, ABC and its related sports-programming networks, while Warner Bros. Discovery owns TBS, TNT sports and other sports networks. Fox also owns several sports programming networks.

Garnett said Fubo likely would experience a quick "exodus" of subscribers and go out of business, which would make Venu Sports the only option for those who want to pay for a sports streaming service that doesn't include entertainment or news channels.

Allowing the launch of Venu Sports while the federal lawsuit is active likely would harm Fubo and possibly put it out of business before the case is argued and decided.

Advertisement

The proposed Venu Sports would "monopolize the market, stifle competition and cheat consumers from deserved choice," Fubo Chief Executive Officer David Gandler said in a prepared statement.

The Venu Sports bundle would cost significantly less than what Fubo subscribers pay for the comprehensive sports-only streaming platform. Venu Sports planned a monthly subscription of $42.99 compared with Fubu's $80 per month, including several regional sports networks, as well as CBS and NBC, but lacks channels from Warner Bros. Discovery.

It also would include Max, ESPN+ and Hulu, plus many network channels, including Fox, ESPN, ABC, TBS, TNT, TruTV.

The three networks planning to launch Venu Sports control about 54% of all nationally broadcast U.S. sports rights and 75% of the NFL, NBA, MLB and NHL.

Fubo says Venu Sports would force rivals like Fubo to add costly channels that subscribers don't want to stream commonly viewed sports channels.

Meanwhile, Venu Sports would feature only sports-related channels and content, which Fubo already provides for its subscribers.

Garnett agreed in her 69-page ruling and said the proposed Venu Sports would give its owners "near-monopolistic control" of streaming services that only provide subscribers with only live sports.

Warner, Fox and Disney said they will appeal the ruling.

Advertisement

Latest Headlines