Why a Judge Blocked Industry-Changing Sports Streaming Bundle
By Movieguide® Contributor
The launch of ESPN, Fox and Warner Bros. Discovery’s Venu Sports, dubbed “the future home of sports streaming,” has been temporarily blocked after Fubo, a smaller sports streaming platform, requested a preliminary injunction.
Per ESPN, “United States District Judge Margaret M. Garnett in the Southern District of New York said in her 69-page ruling Friday that Fubo was likely to be successful in proving that the joint venture would violate antitrust laws and that Fubo and consumers would ‘face irreparable harm in the absence of an injunction.'”
Venu Sports was set to aggregate 15 linear TV networks, offering “cord-cutters access to a host of sporting events drawing from each of the media companies’ portfolios, including the NFL, NBA, MLB, NHL, tennis, soccer, golf, NASCAR races and UFC matches.” Movieguide® reported on why Fubo sued:
Fubo is aiming to shut down the companies’ sports content altogether, adding that the joint venture will “irrevocably reduc[e] competition in the market and harm…consumers,” per Deadline.
“Faced with the threat of disruptive competition from Fubo and other upstarts, Defendants have responded by locking arms (and locking others out) to steal Fubo’s core business idea—a sports-centric package of channels—while blocking Fubo from offering that same package,” Fubo’s filing added…
If Fubo’s request is granted, there will be a delay or cancellation of Venu.
ESPN obviously disagrees with the judge’s ruling, saying, “We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction.”
“Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options,” the network added.
Does it actually “enhance consumer choice”?
“U.S. Judge Margaret Garnett noted that the three companies control about 54% of all U.S. sports rights, and at least 60% of all nationally broadcast U.S. sports rights,” CNBC said.
“There is significant evidence in the record that the true figures may be even larger,” Garnett said “This means that alone, Disney, Fox, and [Warner Bros. Discovery] are each significant players in live sports licensing, who otherwise compete against each other both to secure sports telecast rights and to attract viewers to their live sports programming. But together, they are dominant.”
Fubo is grateful for the ruling.
“Today’s ruling is a victory not only for Fubo but also for consumers,” said Fubo CEO David Gandler. “This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.”
