A Judge Stops Disney’s New Sports Streaming Venture Just Before the NFL Season Starts
A federal judge ruled on Friday to halt Walt Disney’s, Fox’s, and Warner Bros Discovery’s plans for a new sports streaming service, indicating that FuboTV has a strong case suggesting that the collaboration would harm competition.
In a decision by U.S. District Judge Margaret Garnett in New York, it was stated that a temporary injunction against the streaming initiative was warranted.
Fubo initiated its lawsuit on February 20, arguing that the new service would “eliminate competition and raise prices for consumers.”
Venu Sports: A Joint Venture by Fox, Disney, and Warner Bros Discovery
Earlier this February, Fox, Disney’s ESPN, and Warner Bros Discovery announced plans to create a sports streaming service, which they named Venu Sports, targeting a younger audience.
The three companies responded by stating that they believe Fubo’s claims are incorrect and intend to appeal the court’s decision.
“Venu Sports is intended to be a competitive solution that seeks to expand consumer options by addressing a segment of viewers who are currently underserved by available subscription services,” they explained.
Representatives of the other involved parties did not provide comments immediately on Friday.
Earlier this month, Venu Sports announced its intention to launch in the U.S. this fall, offering a wide range of sports content, including 14 live sports channels and a library of additional materials. They expressed hope of gaining 5 million subscribers within five years of launching.