Maybe Don’t Cut the Cord Just Yet, Sports Fans
If Venu sounded too good to be true, well, now we won’t know until next year (at least).
A court has granted Fubo‘s injunction against the sports-streaming service, a joint venture between Disney, Fox, and Warner Bros. Discovery, set to launch on August 23. Now it is grounded until at least 2025, pending the joint venture’s appeal.
The Venu companies and executives wanted their service out in time for the 2024 NFL football season. At this rate, it’s missing all of that, most of basketball season, probably (at least) some baseball. It would’ve had some hockey games too.
The U.S. District judge in the case wrote that Venu would have “substantially lessened competition and restrained trade.”
“Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that consumers have access to a more competitive marketplace with multiple sports streaming options,” David Gandler, co-founder and CEO, Fubo, said in a statement. “But our fight continues. Fubo has said all along that we seek equal treatment from these media giants, and a level playing field in our industry. The proposed joint venture was only the latest example of anticompetitive practices that The Walt Disney Company, FOX Corp. and Warner Bros. Discovery have consistently engaged in for many years. We believe these practices monopolize the market, stifle competition and cheat consumers from deserved choice. A fair and competitive marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options. We will continue to fight for fairness and for what’s best for consumers.”
ESPN/Disney, Fox, and Warner Bros. Discovery shared the following with IndieWire via a joint statement: “We respectfully disagree with the court’s ruling and are appealing it. 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.”
Fubo’s argument was that if it wants the sports rights that Warner Bros. Discovery, Disney, and Fox have, it has to agree to carry a bunch of other unpopular channels no one wants to watch, and that drives up the price for the consumer. Venu, as owned by the companies itself, meanwhile would get the exclusive access to a skinny bundle and have all the sports in one place without dealing with the rest, or the higher fees. Fubo and other providers like YouTube TV or Philo would be screwed.
Venu was going to cost $42.99 per month after a 7-day free trial. By comparison, Fubo in February raised its prices to $79.99 per month.
The trio of companies behind Venu however has sworn that they are only targeting cord-cutters and cord-nevers, not current cable subscribers. Venu also set a self-destruction date on itself of nine years. The companies even said in court that Fubo was a “weak competitor” and didn’t have to spend the billions they did to acquire sports rights and produce the content. Bone of this swayed the preliminary court.
Fubo was not the only group that didn’t want to see Venu launch. Senators Bernie Sanders, Elizabeth Warren, and Joaquin Castro sent a letter urging the DOJ and FCC to scrutinize it.
Venu would not have included any sports controlled by NBC Sports or CBS Sports, which includes a fair amount of NFL games, some college basketball, and much more. NBC and Peacock also won the rights to the NBA and took it away from WBD, which would have put a damper on Venu to some degree.
A court date for the antitrust lawsuit has not yet been announced.
