Fubo scores win against Disney, FOX, WarnerBros to block Venu

Venu, a new sports streaming bundle backed by ESPN, FOX, and WarnerBros Discovery, may not be released soon. The three massive media companies announced in February that they were joining forces to create a new app. The streaming service will include thousands of live sporting events in one convenient place.

While convenient, Venu’s price tag is something not seen before in the streaming industry. Officials involved in the deal revealed that the app will cost customers $42.99 per month. Along with announcing the price, the media companies also declared that the service would hit the market in the fall. This, however, is now likely not to happen.

Judge sides with Fubo in antitrust lawsuit against Venu

Immediately after announcing Venu in February, Fubo sued ESPN, FOX, and WarnerBros Discovery. The fellow streaming television service argued that the collaboration violated current federal antitrust law. Judge Margaret Garnett has now officially agreed with Fubo.

“[I]t appears to the Court that Fubo is likely to succeed on its claims” that Venu would “substantially lessen competition and restrain trade,” Garnett wrote in a lengthy decision in the case, as reported by Front Office Sports.

“Together, they own over 60% of the telecast rights to nationally broadcast live sports, and an even larger share of the most-watched sports like football and basketball and the most-watched events like playoff or championship games,” continued Garnett. “Fubo alleged in its suit that Venu was part of a long-running conspiracy to deprive Fubo of the chance to create its own digital sports bundle.”

As a result of the ruling, ESPN, FOX, and WarnBros Discovery issued a statement opposing the judge’s decision. “We respectfully disagree with the court’s ruling and are appealing it,” read the statement. “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.”

Court ruling directly helps lift Fubo’s stock by 23%

Lawyers for Venu previously argued in the case that a ruling against them would end the project. Fubo, on the other hand, claimed that a court decision against them would essentially ruin their company. Judge Garnett’s decision, however, has directly influenced Fubo’s immediate financial standing. The streaming service’s stock jumped 23% on Friday.

The court ruling does not necessarily end Venu’s proposal though. However, the decision essentially puts plans for the massive streaming service on hold. In the meantime, the media companies controlling Venu are appealing the official ruling. Nevertheless, Disney, a key player on Venu’s side of things, may eventually pull out of the plans depending on what happens next. This would be extremely detrimental to Venu’s existence.

Following the ruling, Disney also asked the court to make Fubo pay the media giant $100 million. The request was because of potential lost revenue due to Venu’s delay. Judge Garnett, however, rejected the claim.

Fubo was initially launched in 2015 and has since become increasingly more involved in the streaming wars. As of March 2024, the company claims to have nearly two million global paid subscribers.

Photo credits: IMAGO / SOPA Images : IMAGO / Zoonar.