A major upcoming streaming service directed at live sports fans in the US just hit a big snag. CNBC reports that late on Friday, U.S. Judge Margaret Garnett placed a temporary injunction for the launch of Venu, the service that would combine the live sports rights of Disney, Fox, and Warner Bros. Discovery,
The three media outlets, which are normally rivals, first announced their plans for the service in February, and then revealed the Venu brand name in May. The service was supposed to launch sometime later this fall with a price tag of $42.99 a month.
However, rival live TV streaming service FuboTV quickly filed a lawsuit against Disney, Fox, and Warner Bros Discovery. FuboTV claimed the three media giants "have engaged in a years-long campaign to block Fubo's innovative sports-first streaming business." FuboTV said the service violated antitrust laws and was anticompetitive.
This week, Judge Garnett reviewed the arguments for and against an injunction against Venu from both FuboTV and the combined Disney-Fox-Warner Bros Discovery legal teams. In the end, Judge Garnett ruled in favor of FuboTV to put an injunction on Venu's launch. She noted that Disney, Fox, and Warner Bros. Discovery held 54 percent of all US sports TV rights. She added:
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.
After the ruling FuboTV CEO David Gandler stated it was "a victory not only for Fubo but also for consumers" adding that it would offer sports fans "access to a more competitive marketplace with multiple sports streaming options." In a joint statement, Warner Bros. Discovery, Fox, and Disney said they "respectfully disagree with the court’s ruling and are appealing it."
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