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Federal judge blocks launch of streaming service Venu Sports to compete with Warner Bros., Fox and Disney
Massachusetts

Federal judge blocks launch of streaming service Venu Sports to compete with Warner Bros., Fox and Disney

Michigan head coach Jim Harbaugh raises the trophy while standing with offensive MVP quarterback JJ McCarthy after the Wolverines defeated the Alabama Crimson Tide 27-20 in the 2024 NCAA Rose Bowl in Pasadena, California on Jan. 1, 2024. The planned launch of Venu Sports would likely make it more difficult for sports fans to watch events like this on ESPN. File photo by SooHoo/UPI
Michigan head coach Jim Harbaugh raises the trophy while standing with offensive MVP quarterback JJ McCarthy after the Wolverines defeated the Alabama Crimson Tide 27-20 in the 2024 NCAA Rose Bowl in Pasadena, California on Jan. 1, 2024. The planned launch of Venu Sports would likely make it more difficult for sports fans to watch events like this on ESPN. File Photo by SooHoo/UPI | Licensed Photo

Aug. 17 (UPI) – A federal judge has granted sports streaming service Fubo’s request to stop the planned launch of a competing sports streaming service due to potential anti-competitive behavior.

Warner Bros. Discovery, Fox and Disney had planned to launch their streaming service Venu Sports shortly before the start of the NCAA and NFL football seasons. However, the injunction temporarily halts the launch of the pure sports streaming service.

U.S. District Judge in Southern New York State Margaret Garnett ruled that Fubo was likely to win its case, accusing the proposed sports streaming service of significantly reducing competition and hindering commerce in the sports streaming market.

Disney owns ESPN, ABC and their associated sports programming networks, while Warner Bros. Discovery owns TBS, TNT Sports and other sports networks. Fox also owns several sports programming networks.

Garnett said Fubo would likely see a rapid “exodus” of its subscribers and go out of business, making Venu Sports the only option for those who want to pay for a sports streaming service that doesn’t include entertainment or news channels.

Allowing Venu Sports to launch while the federal case is ongoing would likely harm Fubo and potentially put the company out of business before the case is heard and decided.

The proposed Venu Sports would “monopolize the market, stifle competition and deprive consumers of the choices they deserve,” Fubo CEO David Gandler said in a prepared statement.

The Venu Sports package would cost significantly less than what Fubo subscribers pay for the comprehensive sports-only streaming platform. Venu Sports planned a monthly subscription of $42.99 compared to Fubu’s $80 per month, including several regional sports networks as well as CBS and NBC, but excluding channels from Warner Bros. Discovery.

It would also include Max, ESPN+ and Hulu, as well as many network channels including Fox, ESPN, ABC, TBS, TNT and TruTV.

The three networks planning to launch Venu Sports control about 54% of all nationally broadcast U.S. sports rights and 75% of the NFL, NBA, MLB and NHL.

Fubo says Venu Sports would force competitors like Fubo to add expensive channels that subscribers don’t want to stream in order to stream frequently watched sports channels.

Venu Sports, meanwhile, would only offer sports-related channels and content that Fubo already provides to its subscribers.

Garnett agreed in her 69-page ruling, saying the proposed Venu Sports would give its owners “near-monopolistic control” over streaming services that offer live sports exclusively to their subscribers.

Warner, Fox and Disney said they would appeal the ruling.

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