Disney, Warner Bros. Discovery, and Fox’s new sports streaming service, Venu Sports, has hit a roadblock. A federal judge has issued an injunction halting the service’s launch, siding with Fubo TV.
Venu Sports was set to offer a variety of live sports channels, including ESPN, ESPN2, ABC, Fox, FS1, TNT, and TBS, at an initial subscription rate of $42.99 per month. The service also planned to feature on-demand content from the partners’ libraries, such as ESPN’s 30 for 30 series. This offering could have enticed users to cut their traditional TV packages in favor of streaming, which is particularly appealing for those seeking live sports.
Fubo TV, which specializes in sports streaming, immediately filed a lawsuit after Venu Sports’ announcement. Fubo claimed that the new service would breach antitrust laws by undercutting existing services. It argued that Disney, Fox, and Warner already charge Fubo higher rates for access to their channels compared to other distributors. Furthermore, Fubo contends that these companies force it to bundle non-sports channels with sports packages, giving Venu Sports an unfair advantage by avoiding these additional costs.
Judge Margaret M. Garnett granted a temporary injunction to Fubo, preventing Venu Sports from launching for the time being. The court’s statement highlighted concerns that the joint venture’s launch could monopolize the market for sports-only streaming options, given the defendants’ historical bundling practices.
Fubo welcomed the injunction, stating, “Fubo’s goal is to foster a competitive sports streaming market that provides consumers with choices, affordable pricing, flexibility, and innovation. Every distributor should have a fair chance to compete.”
The injunction is temporary, and Fubo’s legal battle with Disney, Fox, and Warner is ongoing, with no court date confirmed yet.
