The sports-focused live TV streaming platform, FuboTV, has successfully halted the planned launch of Venu Sports, a joint venture by The Walt Disney Company, Fox, and Warner Bros Discovery. This development follows the approval of FuboTV’s request for a preliminary injunction by the US District Court for the Southern District of New York on August 16th.
David Gandler, Fubo co-founder and CEO, commented, “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. The proposed joint venture was only the latest example of anticompetitive practices that The Walt Disney Company, Fox Corp and Warner Bros Discovery have consistently engaged in for many years. We believe these practices monopolise the market, stifle competition and cheat consumers from deserved choice.”
He further added, “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.”
The company took on three of the world’s largest media giants Disney, Fox, and Warner Bros Discovery. FuboTV hailed the court ruling as significant, emphasizing a more competitive streaming market for consumers.
According to FuboTV partners, the joint venture would have controlled between 60% to 80% of live broadcast sports content. Additionally, it presented evidence in the court suggesting that the joint venture would significantly limit consumer options, reduce competition, and ultimately drive up prices, benefiting the partners financially. However, Fubo aims to maintain a competitive sports streaming marketplace that prioritizes consumer choice, affordability, flexibility, and innovation.
FuboTV further intends to proceed with its lawsuit against the partners and affiliates of the Venu Sports joint venture, accusing them of antitrust violations. The lawsuit, filed on February 20th, 2024, claims that these vertically-integrated media giants have conducted a years-long effort to undermine Fubo’s innovative, sports-focused streaming platform, causing substantial harm to both the company and consumers.
Several lawmakers, distribution firms, media companies, and public interest groups have raised concerns about the potential negative effects of the Venu Sports joint venture on consumers. In addition, a coalition of eight organizations Dish, Newsmax, FuboTV, DirecTV, and public advocacy groups including the American Economic Liberties Project, Electronic Frontier Foundation, Open Markets Institute, and Sports Fans Coalition jointly authored a letter to the Chairs and Ranking Members of key Senate and House committees. The letter voiced serious concerns about the JV’s potential impact on the future of streaming.
In a statement, Disney, Fox and Warners said it will appeal the order, “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.”