A Judge Has Temporarily Blocked Disney, Fox, and Warner Bros. Sports Streaming Services

A US judge has temporarily halted Disney, Warner Bros. Discovery, and Fox from launching their sports streaming service, Venu, following a lawsuit by Fubo TV. The temporary injunction was granted just weeks before the start of the NFL season.

Today’s ruling is a victory not only for Fubo but also for consumers

In its case, online TV bundle Fubo, which is similar to a typical pay TV package, claimed that Venu was anticompetitive and would cause it to go out of business. On Friday, Fubo’s shares increased by 16% upon learning of the injunction.

Fubo CEO David Gandler stated “Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,”

In February, Warner Bros. Discovery, Fox, and Disney’s ESPN announced the development of a new streaming service. Fubo then filed an antitrust action against the venture.

Fubo plans to proceed with its antitrust lawsuit against Venu for anticompetitive practices, following a letter from lawmakers including Sen. Elizabeth Warren, Sen. Bernie Sanders, and Rep. Joaquin Castro, urging scrutiny of Venu.

Warner Bros. Discovery, Fox, and Disney’s ESPN issued a unified statement on Friday, they stated “We respectfully disagree with the court’s ruling and are appealing it, We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction. Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”

Venu announced a monthly price of $42.99

Earlier this month, Venu revealed a monthly price of $42.99. The service would provide the whole suite of live sports rights owned by the parent corporations, including the NBA, NHL, MLB, college football, and basketball, among others. Venu customers would also get access to the parent companies’ 14 traditional TV sports networks, which include ESPN, ABC, Fox, TNT, and TBS, as well as the streaming service ESPN+.

The three companies controlling 54% and 60% of all nationally broadcast U.S. sports rights, according to court documents, have a significant influence on the streaming of live sports, thereby avoiding any disruption to traditional pay TV distributors.

The high cost of streaming live sports does not disrupt traditional pay TV distributors’ carriage agreements. According to court records, the three firms own approximately 54% of all sports rights in the United States, as well as at least 60% of all nationally broadcast sports rights.

U.S Judge Margaret Garrett said “There is significant evidence in the record that the true figures may be even larger, This means that alone, Disney, Fox, and [Warner Bros. Discovery] are each significant players in live sports licensing, who otherwise compete against each other both to secure sports telecast rights and to attract viewers to their live sports programming. But together, they are dominant,”

CBS and NBC are the largest holders of U.S. sports rights, alongside streaming services like Amazon’s Prime Video. Venu, a sports streaming service, was initially targeted at sports fans outside traditional pay TV bundles. However, Fubo’s lawsuit alleges it violates antitrust law, highlighting anticompetitive behavior from these three media companies.

A hearing involving Fubo, DirecTV, and EchoStar’s Dish argued that the streaming bundle would be detrimental to their businesses. Warner Bros. Discovery’s attorney claimed an injunction would “terminate” Venu, and representatives for Fubo, DirecTV, and Dish supported the lawsuit. The hearing took place over a multi-day period.

EVP of government and external affairs at EchoStar said “This ruling is a major victory for consumers and competition in the video marketplace.

DirecTV said in a statement “We are pleased with the court decision and believe that it appropriately recognizes the potential harms of allowing major programmers to license their content to an affiliated distributor on more favorable terms than they license their content to third parties.”