The launch of Venu Sports will be delayed after a federal judge granted FuboTV’s request for a preliminary injunction against a planned sports streaming venture from ESPN, Fox and Warner Bros. Discovery.
In a 69-page decision, U.S. District Judge Margaret M. Garnett in New York said Fubo would likely be able to prove at trial that the joint venture violated antitrust laws and that Fubo and consumers would “face irreparable harm without an injunction.”
ESPN, Fox and Warner Bros. Discovery said they would appeal the ruling.
FuboTV filed the lawsuit two weeks after ESPN, Fox, Warner Bros. Discovery and Hulu announced plans to offer sports streaming services on Feb. 6.
FuboTV said in the filing that it has been trying to offer a dedicated sports streaming service for years but was deterred by ESPN. Fox and Warner Bros Discovery have imposed bundling requirements on FuboTV that “force Fubo to spend hundreds of millions of dollars to license and broadcast content that customers don’t want or need,” the company said.
“Today’s ruling is a win not only for Fubo but also for consumers. This decision will help ensure consumers have access to a more competitive marketplace with multiple sports streaming options,” Fubo co-founder and CEO David Gandler said in a statement.
“But our fight continues. Fubo has said all along that we want equal treatment from these media giants and a level playing field within the industry.”
“Providing consumers with multiple, robust and more affordable sports streaming choices requires a fair and competitive marketplace,” Gundler continued. “We will continue to fight for what is fair and what is best for consumers.”
Venu Sports announced on August 1 that it would be available for $42.99 per month, scheduled to launch in the fall, though the launch will likely be delayed until at least next year.
The platform will include 14 linear networks – ESPN, ESPN2, ESPNU, SEC Network, ACC Network, ESPNEWS, ABC, FOX, FS1, FS2, Big Ten Network, TNT, TBS and truTV – as well as ESPN+ services.
Subscribers can choose to bundle the product with any or all of Disney+, Hulu, and Max.
In a joint statement, ESPN, Fox and Warner Bros. Discovery said: “We believe Fubo’s claims are false on the facts and the law, and that Fubo has failed to demonstrate that it is legally entitled to a preliminary injunction.”
“Venu Sports is a pro-competitive option designed to increase consumer choice by reaching audiences underserved by existing subscription options.”
ESPN, Fox and Warner Bros. Discovery will each own one-third of the joint venture. The initial contract between the three companies involved in Venue Sports is for nine years, according to the contract and court documents.
The ruling also drew backlash from cable and satellite companies, which have focused on bundling requirements and the subscription fees they typically charge.
DirecTV spokesman John Greer said: “We are pleased with the court’s decision and believe it appropriately recognizes the potential harm of allowing major programming companies to license their content to affiliated distributors on terms more favorable than they could license to third parties.”
