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Federal Judge Delays Venu Sports, Citing Antitrust Issues

By  |  August 18, 2024

The anticipated launch of Venu Sports, a new sports streaming service from ESPN, Fox and Warner Bros. Discovery, has been delayed following a federal judge’s ruling in favor of FuboTV’s antitrust motion for a preliminary injunction. The decision, delivered by United States District Judge Margaret M. Garnett in the Southern District of New York, casts doubt on the future of the joint venture.

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    According to PBS News, Judge Garnett’s 69-page ruling stated that FuboTV is likely to succeed in proving that the Venu Sports joint venture between the major networks would violate antitrust laws. The judge emphasized that both FuboTV and consumers would “face irreparable harm in the absence of an injunction,” effectively halting the launch of Venu Sports.

    FuboTV initiated the lawsuit just two weeks after ESPN, Fox, Warner Bros. Discovery, and Hulu revealed their plans for a new sports streaming service on February 6. Per ESPN’s reports, FuboTV has long sought to offer a sports-only streaming service but has faced obstacles due to bundling requirements imposed by ESPN, Fox, and Warner Bros. Discovery. These bundling practices have allegedly forced FuboTV to “spend hundreds of millions of dollars to license and broadcast content that its customers do not want or need.”

    Venu Sports had announced its planned launch for the fall with a subscription price of $42.99 per month. The platform was set to include content from 14 linear networks, including ESPN, ESPN2, ESPNU, SEC Network, and more, along with ESPN+. Subscribers would also have the option to bundle the service with Disney+, Hulu, and Max, creating a comprehensive entertainment package.

    In a statement, Venu Sports CEO Pete Distad highlighted the service’s appeal, stating, “We will launch at a compelling price point that will appeal to the cord cutter and cord never fans currently not served by existing pay TV packages.” However, with the injunction in place, the launch timeline for Venu Sports remains uncertain.

    Ownership of Venu Sports was to be equally divided among ESPN, Fox, and Warner Bros. Discovery, each holding a one-third stake in the venture. As the antitrust legal battle unfolds, the future of Venu Sports hangs in the balance, with significant implications for the sports streaming market.

    Source: PBS News