Fubo wins injunction: Court halts launch of Venu Sports streaming service

Fubo this week has successfully obtained a preliminary injunction against the launch of Venu Sports, a joint venture between The Walt Disney Company, FOX Corp., and Warner Bros. Discovery. The ruling, issued on August 16, 2024, by the U.S. District Court, Southern District of New York, marks a crucial victory for Fubo in its ongoing battle against what it claims are anticompetitive practices by some of the world's largest media conglomerates.

The court's decision comes just over two weeks after Venu Sports announced its plans to launch a new standalone streaming service in the fall of 2024. The proposed service, which was set to offer thousands of live sports events from major professional leagues and top college conferences at a price point of $42.99 per month, has now been forced to halt its launch plans pending further legal proceedings.

David Gandler, co-founder and CEO of Fubo, hailed the court's decision as "a victory not only for Fubo but also for consumers." In a statement released shortly after the ruling, Gandler said, "This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options."

The legal battle between Fubo and the Venu Sports partners dates back to February 20, 2024, when Fubo filed an antitrust lawsuit against The Walt Disney Company, FOX Corp., and Warner Bros. Discovery. The suit alleges that these vertically-integrated media companies have engaged in a years-long campaign to block Fubo's innovative sports-first streaming business, resulting in significant harm to both Fubo and consumers.

According to Fubo's legal filings, the Venu Sports joint venture would control approximately 60%-80% of live broadcast sports content. Fubo argued that this level of consolidation would limit competition, remove consumer choice, and ultimately lead to steep price hikes for consumers while boosting profits for the joint venture partners.

The preliminary injunction is a significant setback for Venu Sports, which had ambitious plans to revolutionize the sports streaming landscape. The proposed service was set to offer extensive coverage of major sports leagues including the NFL, MLB, NHL, NBA, and WNBA, as well as college sports, international soccer, and niche sports like combat sports and motorsports.

Pete Distad, CEO of Venu Sports, had previously stated that the service was being built "from the ground up for fans who want seamless access to watch the sports they love." The joint venture partners have not yet released a statement regarding the court's decision or their plans moving forward.

The legal victory for Fubo has broader implications for the sports streaming market and raises important questions about media consolidation in the digital age. As traditional cable and satellite TV subscriptions continue to decline, media companies are increasingly looking to capture the growing audience of cord-cutters and "cord-nevers" who prefer streaming services. However, Fubo's lawsuit and the resulting injunction highlight the potential antitrust concerns that arise when major content producers join forces in the streaming space.

The case has also caught the attention of lawmakers and public interest groups. Senators Elizabeth Warren (D-MA) and Bernie Sanders (D-VT), along with Representative Joaquin Castro (D-TX), sent a letter on August 7, 2024, to the Department of Justice and Federal Communications Commission expressing their concerns about the joint venture. Additionally, Representative Jerry Nadler (D-NY), Ranking Member of the House Judiciary Committee, had previously sent letters to the CEOs of the joint venture partners citing concerns about potential anti-competitive behavior.

Fubo has made it clear that its legal fight is far from over. The company intends to move forward with its antitrust lawsuit against the joint venture partners and their affiliates. Gandler emphasized, "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."

For sports fans, the outcome of this legal battle could have significant implications. While the Venu Sports service promised to offer an unprecedented one-stop shop for sports content, critics argued that this convenience could come at the cost of reduced competition and potentially higher prices in the long run. The court's decision to grant the preliminary injunction suggests that these concerns have merit and warrant further examination.

As the fall of 2024 approaches, the future of sports streaming remains uncertain. The preliminary injunction against Venu Sports has temporarily maintained the status quo, but the broader questions about competition, consumer choice, and the structure of the sports media landscape remain unresolved.

Industry observers and sports fans alike will be watching closely as this case progresses. The final outcome could set important precedents for the future of sports broadcasting and streaming, potentially shaping how millions of viewers access their favorite sports content in the years to come.

Key facts

Fubo won a preliminary injunction against Venu Sports on August 16, 2024

The injunction halts the planned fall 2024 launch of Venu Sports

Venu Sports is a joint venture between ESPN/Disney, FOX, and Warner Bros. Discovery

Fubo's antitrust lawsuit, filed on February 20, 2024, alleges anticompetitive practices

The case has drawn attention from lawmakers concerned about media consolidation

The outcome could significantly impact the future of the sports streaming market