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A US judge has temporarily stopped Disney, Warner Bros. Discovery, and Fox from launching their new sports streaming service, Venu. This decision came after Fubo TV, an online TV service, filed a lawsuit claiming that Venu could hurt competition in the sports streaming market.
Fubo argued that the joint venture could dominate the market and reduce consumer choices. Fubo CEO David Gandler welcomed the ruling, stating it would help create more competition and options for viewers.
Venu's Launch Delayed Over Market Concerns
According to New York Times, Fubo's stock price rose by 16% on Friday, August 16, following the injunction.
The judge's decision is a setback for the three media giants, which had planned to launch Venu in time for the NFL season. The service was supposed to offer a wide range of sports content, including NBA, NHL, MLB, and college sports, plus access to popular sports networks like ESPN and Fox Sports.
Judge Margaret Garnett noted that Disney, Fox, and Warner Bros. Discovery control a large share of US sports rights, with a combined 60% of national sports broadcasts and 98% of rights for major league playoff games. This significant control raised concerns about Venu's impact on market competition.
Warner Bros. Discovery, Fox, and Disney have disagreed with the ruling and plan to appeal. They argue that Venu would provide more options for viewers and compete fairly in the market, CNBC reported.
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Lawmakers Push for Antitrust Probe
The ruling comes after a group of lawmakers, including Sen. Elizabeth Warren and Sen. Bernie Sanders, called for a closer look at the Venu deal, suggesting it might violate antitrust laws.
Despite the delay, Venu is set to offer its service at $42.99 per month, aiming to attract sports fans with content from its parent companies and ESPN+. This move is part of a broader trend of shifting away from traditional cable packages to streaming services.
The final outcome of the appeal will determine if Venu can launch as planned or if further delays will follow. In the meantime, the decision is seen as a win for Fubo and other companies concerned about fair competition in the sports streaming market.
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