A U.S. District Court judge issued a temporary injunction Friday against media giants Disney, Warner Bros. Discovery and Fox, preventing them from launching their anticipated sports streaming service, Venu.
The court issued an injunction following a lawsuit from Fubo TV, which claims Venu poses an anticompetitive threat that could harm its business, according to CNBC. The decision comes just weeks before the NFL season. Venu, a joint venture by Disney, Warner Bros. Discovery and Fox, was announced in February and planned to launch before the season.
Judge Margaret Garnett granted Fubo’s request for a preliminary injunction against the new sport streaming service Venu. Garnett pointed out the significant control the three companies hold over U.S. sports broadcasting rights, estimating they possess about 54% of all U.S. sports rights and at least 60% of nationally broadcast sports rights. “Together, they are dominant,” Garrett noted, CNBC reported.
Judge temporarily blocks sports streaming service Venu, ruling in favor of Fubo TV on antitrust concerns https://t.co/ZGyQJukdhM
— CNBC (@CNBC) August 16, 2024
Internet-based TV service FUBO TV saw its stock rise by 16% following the announcement of the injunction. “Today’s 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,” Fubo CEO David Gandler said in a statement, CNBC reported. (RELATED: ESPN, Fox And Warner Bros. Combining For Massive Live Sports Streaming Service)
In response, the companies involved with Venu expressed their disagreement with the court’s decision. “We respectfully disagree with the court’s ruling and are appealing it,” Warner Bros. Discovery, Fox and Disney’s ESPN said in a joint statement, according to CNBC.
