NEW YORK: Sports streamer FuboTV Inc, has been successful in stopping the launch of The Walt Disney Company, FOX Corp. and Warner Bros. Discovery’s Venu Sports joint venture (JV) after its request for a preliminary injunction was approved by the U.S. District Court, Southern District of New York.
The ruling is significant as Fubo fought against three of the world’s biggest media conglomerates to create a more competitive streaming marketplace for consumers.
The court concluded that if the platform launches, there will likely be a “swift exodus” of Fubo’s subscribers that will lead to the company’s bankruptcy. Venu will be the “only option on the market for those television consumers who want to spend their money on multiple live sports channels they love to watch, but not on superfluous entertainment channels they do not,” U.S. District Judge Margaret Garnett wrote in her ruling.
Fubo had sought to stop the launch of the JV that would have controlled roughly 60%-80% of live broadcast sports content, according to its partners. Fubo presented evidence of the JV’s primary effect of limiting competition, removing consumer choice, and ultimately leading to steep price hikes for consumers and boosting profits for the partners. Fubo’s goal is to ensure a competitive sports streaming marketplace that offers consumers choice, affordable pricing, flexibility and innovation. All distributors should have the opportunity to compete in a fair market, according to Fubo.
Fubo also intends to move forward with its lawsuit against the JV partners and their affiliates for antitrust practices. The suit, filed February 20, alleges that the vertically-integrated media companies have engaged in a years-long campaign to block Fubo’s sports-first streaming business resulting in significant harm to both Fubo and consumers.
Multiple lawmakers, media and distribution companies and public interest groups have also publicly expressed concern about the JV’s negative impact for consumers. Sen. Elizabeth Warren (D-MA), Sen. Bernie Sanders (D-VT) and Rep. Joaquin Castro (D-TX) sent a letter on August 7 to the Department of Justice and Federal Communications Commission. Additionally, Rep. Jerry Nadler (D-NY), Ranking Member, House Judiciary Committee, and Rep. Joaquin Castro (D-TX) sent letters on April 16 and June 7 to the JV partner CEOs Bob Iger, Lachlan Murdoch and David Zaslav citing concerns of negative consumer impact and anti-competitive behavior as a result of the JV.
Additionally, eight entities (Fubo, DirecTV, Dish, Newsmax and public advocacy groups American Economic Liberties Project, Electronic Frontier Foundation, Open Markets Institute and Sports Fans Coalition) co-authored a letter to the chairs and ranking members of the Senate Commerce and Judiciary Committees, House Energy & Commerce and Judiciary Committees expressing concern with the JV and its impact on the future of streaming.
David Gandler, co-founder and CEO, Fubo, commented: “Today’s (Friday) ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options.
“But 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. The proposed joint venture was only the latest example of anticompetitive practices that The Walt Disney Company, FOX Corp. and Warner Bros. Discovery have consistently engaged in for many years. We believe these practices monopolize the market, stifle competition and cheat consumers from deserved choice.
“A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options. We will continue to fight for fairness and for what’s best for consumers.”
In a statement, Disney, Fox and Warners said it will appeal the order. “We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction,” it added. “Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”
Per Hollywood Reporter, the streaming bundle is targeting a fall launch at $42.99 per month, with plans to offer it as a bundle with Max, ESPN+ and Hulu. Subscribers, who will be locked in at that price for a year, will be able to access a number of live, linear channels, including ESPN, Fox, ABC, TNT and TBS, as well as ESPN+. Between the three networks, they have rights to the NFL, NBA, MLB and NHL, plus college sports and pro tennis. They collectively control over half the country’s TV rights to professional and college sports.
