Court
Joint Venture: Media Giants, Disney, Warner, Fox, Discovery Barred From Launching Sports Streamer
United States Federal court barred Venu Sports, the upcoming joint sports streaming project from Warner Bros. Discovery, Disney, and Fox Corporation, on Friday.
The temporary injunction was granted in response to a lawsuit filed by Fubo TV, which came just weeks before the start of the NFL season.
U.S. District Judge Margaret Garnett in federal court in Manhattan barred the three companies from launching Venu, saying the FuboTV sports streaming service would likely succeed on accusations that the new broadband entity would “substantially lessen competition and restrain trade.” Fubo was founded in 2015 as a start-up focused on streaming sports content.
US District Judge Margaret Garnett wrote Friday in the preliminary injunction order:
“It appears to the Court that Fubo is likely to succeed on its claims that by entering into the [joint venture], the [joint venture] Defendants will substantially lessen competition and restrain trade in the relevant market.”
Fubo sued major media corporations in February, arguing that they used their control over important sports content to force competitors to offer more expensive and less popular channels. According to Fubo, this technique increases consumer prices.
A statement by Disney, Fox and Warner Bros. Discovery, said, “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.”
Responding to the Judge’s ruling, Fubo co-founder and chief executive David Gandler said: “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.”
We earlier reported that Disney+ would undergo significant changes later this year, including pricing increases and the addition of live news and what it refers to as “continuous playlists.”