US halts Disney-Fox-WB's upcoming sports streaming service over antitrust concerns
What's the story
A federal judge in New York has temporarily halted the launch of Venu Sports, a live sports streaming service by Disney, Fox, and Warner Bros. Discovery. The decision was made in response to a complaint filed by Fubo, another streaming service that argued the proposed bundle would likely breach antitrust laws. Fubo claimed that this partnership was part of "a years-long campaign to block Fubo's innovative sports-first streaming business."
Service details
Venu Sports: A joint venture of entertainment giants
The entertainment giants had planned to launch Venu Sports later this year, with a monthly subscription fee of $42.99. The service was set to offer access to networks across their portfolios, including ESPN, Fox Sports, and TNT. It promised 14 channels of live sporting events with access to ESPN+ and four of its spinoff channels, the Fox network and both of its Fox Sports channels, and a handful of Warner Bros.-owned cable networks such as TNT and TruTV.
Allegations
Fubo alleges unfair competition from Venu Sports
Fubo argued that the bundling of sports content from all three companies would put other distributors like itself at "an extreme competitive disadvantage." This sentiment was echoed by DirecTV and Dish, who supported Fubo in the case. Southern District of New York Judge Margaret Garnett agreed with Fubo's argument that the deal likely violates the Clayton Act, which governs mergers and acquisitions, and issued a preliminary injunction blocking it.
Ruling explanation
Judge Garnett outlines antitrust concerns
Judge Garnett explained the antitrust issue, stating that if Venu Sports were allowed to launch, it would be the only option for television consumers wanting multiple live sports channels without superfluous entertainment channels. She noted that the corporate owners of Venu Sports have used their longstanding bundling practices to create a void in the pay TV market, tailor-made for a live-sports-only service like Venu Sports to fill.
CEO statement
Fubo CEO hails court decision as victory for consumers
Fubo's co-founder and CEO, David Gandler, hailed the court's decision as a win for both Fubo and consumers. He stated that this ruling would help ensure a more competitive marketplace with several sports streaming options. However, he emphasized that their fight continues against what they perceive as anticompetitive practices by media giants like The Walt Disney Company, FOX Corp, and Warner Bros. Discovery.