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A U.S. judge has temporarily blocked the launch of a sports streaming service created by Disney’s ESPN, Warner Bros. and Fox, saying it could “substantially lessen competition” in the market.
The service, called Venu, was supposed to launch later this year. But FuboTV, a sports-focused streaming platform, filed an antitrust lawsuit in February to block it, arguing that its business would “suffer irreparable harm” as a result.
On Friday, U.S. District Judge Margaret Garnett of New York granted an injunction to halt the service’s launch while Fubo’s lawsuit against the entertainment giants continues in court.
The opinion was sealed, but the judge noted in a court filing entry that Fubo “would likely succeed in its claims” that by entering into the agreement, 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 intend to appeal the decision.
Venu targeted U.S. consumers who had either abandoned their traditional pay TV packages for streaming or had never subscribed to cable. Cord-cutting has eroded the traditional TV business for years, but live sports remained a primary draw for customers who stuck with cable.
Fubo TV launched in 2015 as a sports-focused streamer. It offers more than 350 channels, including major sporting events such as Premier League soccer, baseball, the National Football League, and the U.S. National Basketball Association, for monthly subscription prices starting at $79.99. Its offerings include networks owned by Disney and Fox.
ESPN, Fox and Warner Bros. said Venu was “pro-competitive,” aimed at reaching “viewers who are currently underserved by current subscription options.”
Venu was set to charge $42.99 a month when it launched later this month. “It will have just 15 channels, all featuring popular live sports, the kind of bare-bones sports package Fubo has tried to offer for nearly a decade, only to be met with tooth-and-nail resistance,” Fubo said in a court filing seeking the injunction.
Analysts estimated that Venu would have to aggregate about $16 billion in sports rights. It was not expected to have an impact on the ability of individual companies to strike new rights deals.
Analysts have questioned its market position. Disney plans to launch ESPN as a “flagship” streaming service in August 2025, which will carry programming that appears on the network’s TV, as well as gaming, shopping and other interactive content. Disney CEO Bob Iger has said he wants the service to be the “preeminent digital sports platform.”
AVsceker the ruling, Fubo shares rose 16.8 percent, but the stock is down 51 percent this year.
