Published: August 20, 2024

Why a judge blocked an industry-changing sports streaming package

By Movieguide® Contributor

The launch of ESPN, Fox and Warner Bros. Discovery’s Venu Sports, the “future home of sports streaming,” has been temporarily blocked after Fubo, a smaller sports streaming platform, filed for an injunction.

According to ESPN, U.S. District Judge Margaret M. Garnett in the Southern District of New York said in her 69-page ruling Friday that Fubo would likely succeed in proving that the joint venture violated antitrust law and that Fubo and consumers ‘would suffer irreparable harm without an injunction.'”

Venu Sports would aggregate 15 linear TV networks and provide “cable-waivers access to a wide variety of sporting events from each media company’s portfolios, including NFL, NBA, MLB, NHL, tennis, soccer, golf, NASCAR racing and UFC fights.” Movieguide® reported on the reasons for Fubo’s lawsuit:

Fubo intends to discontinue the two companies’ sports content entirely, adding that the joint venture will irreversibly reduce competition in the market and harm consumers, according to Deadline.

“Faced with the threat of disruptive competition from Fubo and other upstarts, defendants responded by colluding (and locking others out) to steal Fubo’s core business idea – a sports-centric broadcast package – while simultaneously preventing Fubo from offering the same package,” Fubo’s complaint continued…

If Fubo’s request is granted, Venu will be delayed or canceled.

ESPN clearly disagrees with the judge’s decision, stating: “We believe that Fubo’s arguments are incorrect as to the facts and the law and that Fubo has failed to prove that it is legally entitled to an injunction.”

“Venu Sports is a pro-competitive option that aims to expand consumer choice by reaching a segment of viewers not currently served by existing subscription options,” the network added.

Does it actually improve consumer choice?

“US Judge Margaret Garnett found that the three companies control about 54% of all US sports rights and at least 60% of all nationally broadcast US sports rights,” CNBC said.

“There is strong evidence in the filing that the actual numbers may be even higher,” Garnett said. “This means that Disney, Fox and (Warner Bros. Discovery) are each significant players in live sports licensing on their own, otherwise competing with each other to both secure the rights to broadcast sports and attract viewers to their live sports programming. But collectively they are dominant.”

Fubo is grateful for the verdict.

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

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