Sports streaming service Fubo has temporarily fended off a major financial threat from Disney-Fox-Warner’s potential rival Venu Sports and its collection of sports broadcasting licenses thanks to a recent court ruling. A federal judge in the Southern District of New York granted an injunction in an antitrust case against Fubo’s joint sports broadcasting venture and its parent companies.
U.S. District Judge Margaret Garnett wrote in an opinion earlier today that such concentrated media power would eliminate consumer choice. Venu’s launch would also “increase prices for consumers and other distributors” and create “multi-year monopoly runway” in the sports broadcasting sector for Disney, Fox and Warner.
“Even if [joint venture] defendants swear that such price gouging and foreclosure will not in fact occur (although . so that American consumers don’t have to just take their word for it and hope for the best.”
Garnett also wrote that the injunction is necessary because of “fundamental damages that money cannot adequately repair” if Fox-Disney-Warner’s Venu Sports moves forward.
Fox-Disney-Warner first announced plans to launch a live sports streaming channel in February and then revealed the name and price For Venu Sports streaming service. The joint sports streaming venture will cost viewers $42.99 a month with a seven-day free trial and promises 14 live sporting events with access to ESPN+ and its four spin-off channels, the Fox network and both Fox Sports channels and multiple channels. According to a press release, Warner Bros. It owned cable networks such as TNT and TruTV.
Fubo appealed to the court A few weeks after the initial announcement of Fox-Disney-Warner. Fubo’s antitrust lawsuit accused the trio of media giants of orchestrating a “year-long campaign” to undermine the sports streaming service. The suit also alleged that the joint venture would concentrate too many businesses on one service, hindering competition and raising prices for viewers and distributors.
The decision temporarily halts Fox-Disney-Warner’s plans for Venu Sports. Its fate will ultimately be determined by an antitrust case in federal court.
