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A US judge has temporarily blocked the launch of a sports streaming service from Disney's ESPN, Warner Bros. and Fox, saying it would likely “substantially lessen competition in the marketplace.”
The service, called Venu, was set to launch later this year. But FuboTV, a streaming platform focused on sports, filed an antitrust lawsuit in February to block it, arguing that it would cause “irreparable harm” to its business.
On Friday, U.S. District Judge Margaret Garnett in New York issued an injunction halting the service's launch while Fubo's lawsuit against the entertainment giants proceeds through the courts.
The ruling was sealed, but the judge noted in a note on the court docket that Fubo “would likely succeed on its claims” and that by entering into the agreement, the companies “will materially lessen competition and restrain trade in the relevant market” in violation of antitrust law.
ESPN, Fox and Warner Bros. Discovery said in a statement that they will appeal the decision.
Venu was aimed at U.S. consumers who had either abandoned their traditional pay-TV packages for streaming or never subscribed to cable. “Cord cutting” has been undermining the traditional TV business for years, but live sports are still a major draw for customers who have kept their cable subscriptions.
Fubo TV launched in 2015 as a sports-focused streamer. It offers over 350 channels, including channels covering major sporting events like Premier League soccer, baseball, the National Football League, and the US National Basketball Association, for monthly subscription prices starting at $79.99. Offerings include networks owned by Disney and Fox.
ESPN, Fox and Warner Bros. said Venu was “pro-competitive” and aimed at reaching “viewers who are currently underserved by existing subscription options.”
Venu was expected to charge $42.99 per month when it launched later this month. It “will feature just 15 channels, all of which feature popular live sports — the kind of meager sports bundle that Fubo has been trying to offer for nearly a decade but has only been met with tooth-and-nail resistance,” Fubo said in a court filing seeking the injunction.
Venu was expected to collect about $16 billion in sports rights, analysts estimated. It was not expected to impact the individual companies' ability to strike new rights deals.
Analysts had questioned its position in the market. Disney plans to roll out ESPN in August 2025 as a “flagship” streaming service that will offer programming that appears on the TV network, as well as gaming, shopping and other interactive content. Disney CEO Bob Iger said he wants the service to become the “preeminent digital sports platform.”
Fubo shares rose 16.8 percent after the ruling, but the stock has fallen 51 percent this year.
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