Blow to ESPN and Fox as US judge halts sports streaming venture

The launch of Venu Sports will be delayed after a federal judge granted FuboTV’s motion for a preliminary injunction against the planned sports streaming venture by ESPN, Fox and Warner Bros Discovery.

US district judge Margaret M Garnett in New York said in her 69-page ruling that Fubo was likely to be successful in proving during a trial that the joint venture would violate antitrust laws, and Fubo and consumers would “face irreparable harm in the absence of an injunction”.

ESPN, Fox and Warner Bros Discovery said they would appeal against the ruling.

FuboTV filed the lawsuit two weeks after ESPN, Fox, Warner Bros Discovery and Hulu announced their plan to offer a sports streaming service on 6 February.

FuboTV said in its filing that it had tried for years to offer a sports-only streaming service but had been prevented from doing so because of ESPN. Fox and Warner Bros Discovery have imposed bundling requirements on FuboTV which it says forces “Fubo to spend hundreds of millions of dollars to license and broadcast content that its customers do not want or need”.

“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’s co-founder and chief executive, David Gandler, said in a statement.

“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.”

“A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options,” Gandler continued. “We will continue to fight for fairness and for what’s best for consumers.”

Venu Sports announced on 1 August it would be available for $42.99 per month with its planned launch in the fall. That launch will probably be delayed until at least next year.

The platform would include offerings from 14 linear networks – ESPN, ESPN2, ESPNU, SEC Network, ACC Network, ESPNEWS, ABC, FOX, FS1, FS2, Big Ten Network, TNT, TBS, truTV – as well as ESPN+.

Subscribers would have the ability to bundle the product with Disney+, Hulu and/or Max.

ESPN, Fox and Warner Bros Discovery said in a joint statement: “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.

“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.”

ESPN, Fox and Warner Bros Discovery will each share one-third ownership in the joint venture. The initial term for the three companies to be involved in Venue Sports is nine years, according to term sheets and court filings.

The ruling also drew reaction from cable and satellite companies, who are watching with interest due to their bundling requirements and what companies generally charge in subscriber fees.

A DirecTV spokesman, Jon Greer, said: “We are pleased with the court decision and believe that it appropriately recognizes the potential harms of allowing major programmers to license their content to an affiliated distributor on more favorable terms than they license their content to third parties.”