Venu Sports Launch Delayed by Federal Ruling Against Joint Venture

The anticipated launch of Venu Sports, a new sports streaming service backed by ESPN, Fox, and Warner Bros. Discovery, has been postponed following a federal judge's decision to grant FuboTV a preliminary injunction. U.S. District Judge Margaret M. Garnett ruled that FuboTV is likely to succeed in proving that the joint venture violates antitrust laws, potentially causing "irreparable harm" to both Fubo and consumers if the service proceeds as planned. FuboTV initiated legal action shortly after the announcement of the Venu Sports venture on February 6, claiming that it has faced obstacles in establishing a sports-only streaming service due to restrictive practices imposed by ESPN and its partners. The company argues that these practices have forced it to incur significant costs for content that its customers do not want, thereby stifling competition in the streaming market. In response to the ruling, ESPN, Fox, and Warner Bros. Discovery announced their intention to appeal, asserting that Fubo's claims are unfounded. They maintain that the joint venture is designed to offer a competitive product at an attractive price point of $42.99 per month, featuring content from 14 networks, including ESPN and Fox channels, as well as the option to bundle with Disney+, Hulu, and Max. The ruling has garnered attention from cable and satellite companies, who are closely monitoring the implications for bundling practices and subscriber fees in the evolving streaming landscape. The initial agreement for the joint venture is set for nine years, pending the outcome of the appeal.