Federal Judge Halts Launch of Disney, Fox, Warner Bros. Sports Streaming Service in Legal Win for Fubo

A federal judge has temporarily blocked the launch of Venu Sports, a highly anticipated sports streaming venture backed by Disney, Fox, and Warner Bros. Discovery. The decision, handed down on Friday, deals a significant setback to the media giants just weeks before the start of the NFL season.

The ruling came in response to a request from Fubo, a competing sports streaming service, which sought a preliminary injunction to prevent Venu Sports from entering the market. U.S. District Judge Margaret Garnett sided with Fubo, stating that the evidence suggested the new venture could substantially reduce competition in the sports streaming market.

“It appears to the Court that Fubo is likely to succeed on its claims that by entering into the joint venture, the Defendants will substantially lessen competition and restrain trade in the relevant market,” Judge Garnett wrote in her order.

Fubo had filed a lawsuit against Disney, Fox, and Warner Bros. Discovery in February, accusing them of attempting to monopolize the sports streaming market by bundling their extensive sports media rights into a single service. Venu Sports was poised to offer a wide array of sporting events, including NFL, NBA, MLB, NHL, and more, for a monthly subscription of $42.99.

In response to the ruling, Disney, Fox, and Warner Bros. Discovery issued a joint statement expressing their intent to appeal. “We respectfully disagree with the court’s ruling and are appealing it,” the companies said. “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.”

The decision has bolstered Fubo’s position in the market, with the company’s stock surging more than 17% following the news. Fubo CEO David Gandler hailed the ruling as a win for consumers. “This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” Gandler said in a statement.

The broader media industry has been grappling with the shift from traditional cable bundles to streaming services as consumers increasingly cut the cord. Disney, Fox, and Warner Bros. Discovery have been investing heavily in streaming, with Venu Sports seen as a key part of their strategy to retain subscribers and attract new audiences.

When Venu Sports was first announced in February, Disney CEO Bob Iger, Warner Bros. Discovery CEO David Zaslav, and Fox Corp. CEO Lachlan Murdoch all praised the venture as a significant step forward for the media business. Despite the current setback, the companies are expected to continue exploring new ways to innovate and compete in the rapidly evolving streaming landscape.

A court date for the antitrust lawsuit has yet to be scheduled.