A federal judge has temporarily blocked the launch of Venu Sports, a joint sports streaming venture from Warner Bros. Discovery, Disney, and Fox Corporation, following a request from rival sports streaming service Fubo for a preliminary injunction. The judge, Margaret Garnett, stated that it appeared Fubo was likely to succeed in their claims that the joint venture would substantially lessen competition and restrain trade in the market. Fubo filed a lawsuit against the media giants in February, alleging that they were using their sports media rights to edge out competitors and create an anticompetitive bundle.
Disney, Fox, and WBD, in a joint statement, expressed their intention to appeal the judge’s ruling, disagreeing with the decision and stating that Fubo’s arguments were wrong on the facts and the law. They believe Venu Sports is a pro-competitive option that enhances consumer choice, targeting a segment of viewers who are not currently served by existing subscription options. The Venu Sports service, priced at $42.99 per month, was set to offer access to various sporting events from each of the media companies’ portfolios, including NFL, NBA, MLB, NHL, FIFA World Cup, NASCAR, UFC, and PGA TOUR Golf.
Shares of Fubo surged over 17% following the news of the judge’s decision. Legacy media companies have been transitioning away from traditional cable bundles and towards profitable streaming services to adapt to the changing consumer landscape as more people cut the cord each year. Executives like Bob Iger of Disney and David Zaslav of Warner Bros. Discovery have signaled a shift towards bundling to take on streaming giants like Netflix, Amazon, and Apple. The leaders see the joint venture of Venu Sports as a way to compete with these tech companies and offer consumers a variety of content.
Iger called the launch of Venu an important step forward for the media business, while Zaslav noted that the partnership exemplified the industry’s ability to drive innovation. Lachlan Murdoch, CEO of Fox Corporation, believed that the streamer would provide passionate fans with a wide range of sports content outside of the traditional bundle. The Venu Sports service was expected to offer a comprehensive selection of sports events from major leagues and organizations, catering to a segment of viewers that may not have been served by existing subscription options. The companies involved in the joint venture plan to appeal the judge’s ruling and continue to push forward with their plans for the streaming service.
CNN’s Oliver Darcy contributed reporting to the article, providing additional insight into the legal battle between Fubo and the media giants over the planned launch of Venu Sports. The decision to temporarily block the launch of the joint sports streaming venture has significant implications for the industry as legacy media companies continue to adapt to the changing landscape of streaming and consumer preferences. The appeal of the ruling by Disney, Fox, and WBD indicates their commitment to moving forward with Venu Sports and offering consumers a new option for accessing sports content through their streaming service.
