The sports streaming service Fubo has temporarily fended off a huge financial threat from Disney-Fox-Warner’s potential competitor 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 Fubo’s request for an injunction in its antitrust case against the joint sports streaming venture and its parent companies.
US District Judge Margaret Garnett wrote in an opinion issued earlier today such a concentrated collection of media power would eliminate consumers’ choices. The launch of Venu would also “hike prices on both consumers and other distributors” and create a “multi-year monopolistic runway” in the sports streaming sector for Disney, Fox and Warner.
“Even if the [joint venture] defendants swear that such price-hiking and competition excluding will not actually occur (though…there is good reason to believe that it will),” the opinion reads, “one purpose of antitrust injunctions is to prevent anticompetitive incentives from forming in the first place so that American consumers do not have to simply take their word for it and hope for the best.”
Garnett also wrote the injunction is needed because of “quintessential harms that money cannot adequately repair” if Fox-Disney-Warner’s Venu Sports moves forward.
Fox-Disney-Warner first announced its plans to launch a live sports streaming channel in February and later revealed the name and price for its 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 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, according to a press release.
Fubo filed its lawsuit a couple of weeks after Fox-Disney-Warner’s initial announcement. Fubo’s antitrust lawsuit accused the trio of media giants of staging “a years-long campaign” to weaken its sports streaming service. The suit also claimed the joint venture would concentrate too many entities in one service and would hinder competitiveness and jack up prices for viewers and distributors.
The injunction puts a temporary hold on Fox-Disney-Warner’s plans for Venu Sports. Its fate will ultimately be determined by the antitrust case in federal court.
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