Venu Sports launch delayed after Fubo wins preliminary injunction

The preliminary injunction was issued by US district judge Margaret M. Garnett in response to a lawsuit brought by sports-focused streaming platform Fubo. It comes just weeks before the new National Football League (NFL) season commences, with the three media giants planning to launch Venu in time for opening weekend.

Fubo has alleged that Venu is anti-competitive and would give Disney’s ESPN, Fox, and WBD an incentive not to supply content to other distributors, which would harm its business.

In her ruling, Garnett stated that Fubo was likely to be able to prove successfully that the streaming service would violate antitrust laws during a trial. Without an injunction, she wrote that Fubo and consumers would ‘face irreparable harm’.

Following the ruling, David Gandler, co-founder and chief executive of Fubo, said: “Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.

“But our fight continues. Fubo has said all along that we seek equal treatment from these media giants, and a level playing field in our industry.

“A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options. We will continue to fight for fairness and for what’s best for consumers.”

Fubo also confirmed that it plans to move forward with its lawsuit against Disney, WBD and Fox and their affiliates for antitrust practices. As well as facing Fubo’s lawsuit, the joint venture is also under scrutiny from US federal lawmakers, with a letter from two senators and a congressman sent to the US Department of Justice earlier this month.

Venu had announced earlier in August that it would cost subscribers US$42.99 per month at launch. It would provide 14 live channels from ESPN, WBD and Fox, with ESPN+ to be integrated alongside a library of on-demand content.

In a joint statement, the three companies confirmed they would appeal the ruling. They said: ‘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.’

SportsPro says…
With the launch of Venu, Disney, WBD and Fox hoped the service would marry the benefits of digital distribution, with the bundle economics that has been a lucrative source of revenue for broadcasters and the sports industry over recent decades. The three companies believe that the combination of sports coverage from their portfolios of rights would make Venu an attractive product for cord-cutters and for those who do not have cable television.

Now, all three companies will have to push their case in a trial, with Venu now unlikely to be launched anytime soon. According to Front Office Sports, an attorney for WBD had warned the judge that an injunction would ‘terminate’ Venu.

Fubo believes its efforts to offer a sports-focused streaming service has been nullified by bundling requirements placed by ESPN, Fox and WBD. The multichannel video programming distributor (MVPD) currently charges subscribers to pay for non-sports channels to access desired services like ESPN’s linear channels.

Speaking at SportsPro New York in March, Gandler described the JV as the latest example of “bad behaviour” exercised by a “cartel” designed to weaken any competition. Fubo is also concerned that the JV would incentivise the three companies to not supply content to other distributors. Fubo has also accused WBD of abusing its ‘massive market power’, after failing to reach a carriage deal for the conglomerate’s Turner sports networks. SportsPro Media