Judge blocks Venu sports streaming service launch due to antitrust concerns

From CNBC: 2024-08-16 17:08:49

A U.S. judge has temporarily blocked Disney, Warner Bros. Discovery, and Fox from launching their sports streaming service, Venu, following a lawsuit by Fubo TV. The companies planned to launch before the NFL season. Fubo alleges Venu is anticompetitive; stocks rose 16% on news of the injunction.

Venu’s pricing was announced at $42.99 per month and would offer a complete suite of sports rights owned by the parent companies. Warner Bros. Discovery, Fox, and Disney control around 54% of all U.S. sports rights, and at least 60% of nationally broadcast U.S. sports rights. This domination raises antitrust concerns.

Fubo intends to move forward with its antitrust lawsuit against the companies. The strategy behind Venu has been to target sports fans outside of the traditional pay TV bundle, but Fubo argues it violates antitrust law. The lawsuit has garnered support from DirecTV and Dish, who claim the streaming bundle will harm their businesses.

The court decision is seen as a major victory for consumers and competition in the video marketplace. EchoStar and DirecTV have both released statements expressing support for the ruling. The battle over Venu continues as the three media giants appeal the decision.



Read more at CNBC: Judge temporarily blocks Venu sports streamer, siding with Fubo