Why a judge blocked an industry-changing sports broadcast package

Published: August 20, 2024

Why a judge blocked an industry-changing sports broadcast package

Author: Movieguide® Contributor

The launch of ESPN, Fox and Warner Bros. Discovery’s Venu Sports, billed as the “future home of sports streaming,” was temporarily blocked after Fubo, a smaller sports streaming platform, filed for a preliminary injunction.

According to ESPN, “U.S. District Judge Margaret M. Garnett in the Southern District of New York said in her 69-page ruling Friday that Fubo would likely succeed in proving that the joint venture would violate antitrust laws and that Fubo and consumers ‘would suffer irreparable harm in the absence of an injunction.'”

Venu Sports was supposed to combine 15 linear TV networks, offering “cable-cutters access to a wide range of sporting events using each media company’s portfolio, including NFL, NBA, MLB, NHL, tennis, soccer, golf, NASCAR, and UFC matches.” Movieguide® reported why Fubo sued:

Fubo is set to shut down its companies’ sports content entirely, adding that the joint venture would “irreversibly reduce competition in the marketplace and harm… consumers,” according to Deadline.

“Faced with the threat of disruptive competition from Fubo and other upstarts, Defendants responded by locking down businesses (and locking down others) to steal Fubo’s core business idea—a bundle of sports-focused channels—while preventing Fubo from offering the same bundle,” Fubo’s lawsuit added…

If Fubo’s request is granted, the Venu event will be delayed or canceled.

ESPN apparently disagrees with the judge’s ruling, saying, “We find Fubo’s arguments flawed as a matter of fact and law, and that Fubo has failed to establish that it is entitled to a preliminary injunction.”

“Venu Sports is a pro-competitive option that aims to increase consumer choice by reaching a segment of viewers who are not currently covered by existing subscription options,” the network added.

Does it actually “increase consumer choice”?

“Judge Margaret Garnett found that the three companies control about 54% of all U.S. sporting rights and at least 60% of all U.S. domestic sporting rights,” CNBC reported.

“There is significant evidence in the documents that the true numbers could be even higher,” Garnett said. “That means that Disney, Fox and (Warner Bros. Discovery) are significant players in live sports licensing who otherwise compete with each other both for the rights to broadcast sports and to attract viewers to their live sports programming. But together they dominate.”

Fubo is grateful for the ruling.

“Today’s ruling is a victory not only for Fubo, but also for consumers,” said David Gandler, Fubo’s CEO. “This decision will help ensure that consumers have access to a more competitive marketplace with multiple options for streaming sports.”