Disney, Fox and Warner’s sports streaming project blocked by US judge
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A US judge has temporarily blocked the launch of a sports streaming service being created by Disney, Warner Bros and Fox’s ESPN, finding that it is likely to “substantially lessen competition” in the market.
The servicecalled Venu, was expected to launch later this year. But FuboTV, a sports-focused streaming platform, filed an antitrust lawsuit in February to block it, saying its business would be “irreparably harmed” as a result.
On Friday, U.S. District Court Judge Margaret Garnett in New York issued an injunction halting the service’s launch while Fubo’s lawsuit against the entertainment giants makes its way through the courts.
The opinion was sealed, but the judge noted in an entry in the court filing that Fubo is “likely to succeed in its claim” that by entering into the deal, the companies “would substantially lessen competition and restrain trade in the relevant market” in violation of antitrust law.
In a statement, ESPN, Fox and Warner Bros Discovery said they plan to appeal the decision.
Venu is aimed at US consumers who have abandoned their traditional pay TV packages to streaming or never signed up for cable. “Cord cutting” has been eroding the traditional TV business for years, but live sports remain a major draw for customers who still keep their cable subscriptions.
Fubo TV launched in 2015 as a sports-focused streaming service. It offers more than 350 channels — including those that air major shows. sport events like Premier League soccer, baseball, the National Football League, and the National Basketball Association — with monthly subscriptions starting at $79.99. Its services include networks owned by Disney and Fox.
ESPN, Fox and Warner Bros said Venu is “pro-competitive”, aiming to reach “viewers currently underserved by existing subscription options”.
Venu is expected to cost $42.99 a month when it launches later this month. It “will have just 15 channels, all of which will feature popular live sports—the kind of slim sports package that Fubo has been trying to offer for nearly a decade, only to face fierce resistance,” Fubo said in court filings seeking an injunction.
Analysts estimate Venu is expected to generate around $16 billion in sports rights. This is not expected to impact the ability of individual companies to strike new licensing deals.
Analysts have questioned its position in the market. Disney plans to launch ESPN as a “flagship” streaming service in August 2025, which will air programming on its network as well as gaming, shopping and other interactive content. Disney CEO Bob Iger has said he wants the service to be “the premier digital sports platform.”
Fubo shares rose 16.8 percent after the ruling, but are down 51 percent this year.
