TL;DR
- Venu Sports was supposed to launch ahead of the NFL season, but a judge has blocked this from happening.
- The preliminary injunction is in response to Fubo’s lawsuit stating the new service would have a monopoly over sports streaming due to a roughly 54% control of all US sports between the three partners involved: Disney, Fox, and Warner Bros. Discovery.
- The companies behind Venu Sports have appealed the order, but, for now, the $ 42.99-a-month service has been paused before it could even get off the ground.
Venu Sports was officially announced in August 2024. The new streaming service promised a variety of sports content from Disney, Fox, and Warner Bros. Discovery. There would also be a huge range of live games and events, thanks to partnerships with nearly every major sports association. Fubo immediately took issue with the service, filing an antitrust lawsuit citing “extreme suppression of competition in the U.S. sports-focused streaming market.” Now, they’ve scored the first victory in this battle thanks to a new ruling from a US District Judge.
Fubo has argued that the companies’ massive combined control would create a virtual monopoly over sports services, negatively impacting businesses like theirs and limiting consumer choice. As noted by CNBC it seems U.S. Judge Margaret Garnett believes the case has merit, and she has now temporarily blocked the service from launching. It seems the new service might be in violation of the Clayton Act, which governs mergers and acquisitions.
In her ruling, the judge states, “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,” in her preliminary injunction order.
The service was supposed to launch just weeks ahead of the NFL season and would have been available for $42.99. While this is a significant asking price, the service would have offered a ton of content. As noted by Judge Garnett in court documents, the three companies involved in Venu Sports control roughly 54% of all U.S. sports and at least 60% of all nationally broadcast U.S. sports rights. The judge also suggested that this figure may actually be even higher.
Fubo’s co-founder and CEO, David Gandler, applauded the decision, saying it will “help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.” Unsurprisingly, the three companies behind the service were less thrilled with the response, with a representative for all three stating, “We respectfully disagree with the court’s ruling and are appealing it.”
At least until an official ruling or agreement can be reached, it looks like Venu Sports is on hold. Only time will tell if this is temporary, or if Venu Sports will be killed off before it could ever live.
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