Fubo-Venu Sports Legal Battle Rages — Here’s the Latest
By Movieguide® Contributor
As the court battle between sports streamers Venu and Fubo continues, Fubo is still maintaining that Venu has an “artificial advantage” that will destroy competitors.
Venu Sports was supposed to launch earlier this year, backed by Disney, Fox and Warner Bros. Discovery, but Fubo, another sports streamer, filed a lawsuit that temporarily halted Venu’s plans.
READ MORE: WHY A JUDGE BLOCKED INDUSTRY-CHANGING SPORTS STREAMING BUNDLE
Fubo recently filed another brief that argued Venu has “a built-in advantage: the exclusive right to distribute their combined, commercially critical sports content without also having to pay for — and force viewers to pay for — unwanted non-sports channels.”
The brief also argued that Venu has an “artificial advantage,” as it has been structured “to avoid anything like competition on the merits.”
“Its artificial advantage will capture hundreds of thousands of subscribers and tens of millions of dollars from Fubo alone, driving Fubo into insolvency, and destroying or damaging other distributors,” it continued.
Deadline reported on the brief, writing, “Fubo’s 60-page response draws from emails and comments from executives at the three media companies. It highlights a de facto ‘non-compete’ agreement among them to decline to make their networks available in any new settings outside of Venu for at least three years.”
“It also notes that the three companies control more than 50% of live sports rights in the U.S. (with NBCUniversal and Paramount Global are notably absent) but quotes execs asserting even bigger market share, closer to 60% or even 75%,” the outlet continued.
If Fubo wins its lawsuit, this could mean major changes for its financial situation.
MSN reported that, since its 2015 founding, “Fubo has yet to report a profit…At the preliminary injunction hearing in August that led to the court ordered freeze of the Venu venture, lawyers and witnesses for the company described the company’s nine-year red ink run as normal for a startup, and assured the court that assuming Venu is not allowed to live, Fubo would reach profitability in 2025.”
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