A federal judge on Friday issued a temporary restraining order against Disney, Fox and Warner Bros. Discovery, preventing the companies from launching their joint streaming venture, Venu Sports, as planned this fall.
Read also: Fubo seeks preliminary injunction against Venu Sports as antitrust hearings begin
In her ruling, which notoriously involves high legal hurdles, U.S. District Judge Margaret Garnett ruled that plaintiff Fubo was likely to succeed in its antitrust lawsuit against the joint venture, alleging that the partnership would “substantially lessen competition and restrain trade.”
“Today’s ruling is a victory not only for Fubo, but also for consumers,” said David Gandler, co-founder and CEO of Fubo, in a statement. “This decision will help ensure consumers have access to a more competitive market with multiple sports streaming options.”
“We disagree with the court’s ruling and are appealing,” Venu added in its own statement. “We believe Fubo’s arguments are incorrect as to the facts and the law, and that Fubo failed to prove it is legally entitled to an injunction. Venu Sports is a pro-competitive option that aims to increase consumer choice by reaching a segment of viewers currently underserved by existing subscription options.”
DirecTV, which filed affidavits in support of Fubo’s antitrust case, released the following statement: “We are pleased with the court’s decision and believe it adequately recognizes the potential harm that occurs when large programming providers are allowed to license their content to an affiliated distributor on more favorable terms than if they license their content to third parties.”
Pay-TV providers like Fubo have been begging Disney, Fox, WBD and other program licensors for decades to allow them to create pure sports packages for their customers, but have been turned down each time.
Fubo’s entry-level price is about $80 a month. The sports-focused pay-TV streaming service is forced to license smaller Disney channels to get ESPN, for example.
However, Venu – which controls nearly half of the major U.S. sports television rights – offers a package of 15 linear sports channels, including ESPN, for $42.99 a month.
Fubo has so far successfully argued that this represents an existential threat to its business model.
“Our fight continues,” Gandler added. “Fubo has always said we seek equal treatment from these media giants and a level playing field in our industry. The proposed joint venture was just the latest example of anti-competitive practices that The Walt Disney Company, Fox Corp. and Warner Bros. Discovery have consistently used for many years. We believe these practices monopolize the market, stifle competition and deprive consumers of a choice they deserve.”
