New Delhi: A federal judge has temporarily halted the launch of Venu Sports, a new sports streaming service backed by media giants Walt Disney, Fox, and Warner Bros. Discovery. The decision comes after rival streaming service FuboTV accused the companies of anticompetitive behavior.
Venu Sports was poised to debut this fall, offering a platform dedicated to live professional and collegiate sporting events. The service aimed to capture a younger demographic that increasingly prefers streaming to traditional television.
However, FuboTV argued that the joint venture would stifle competition and drive up prices for consumers. The company claimed that the media conglomerates forced it to include unwanted channels in its packages, hindering its ability to offer a pure sports streaming option.
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In a significant ruling, U.S. District Judge Margaret Garnett agreed with FuboTV’s claims, finding that the joint venture was likely to succeed in its antitrust arguments. The judge expressed concerns about the potential for the media giants to exercise “near-monopolistic control” over sports rights, preventing competitors from emerging.
The injunction is a major setback for Disney, Fox, and Warner Bros. Discovery, which have invested heavily in sports rights. The companies argued that Venu Sports would increase consumer choice and reach a segment of viewers currently underserved by existing options. They have vowed to appeal the court’s decision.
The ruling highlights the intense competition in the streaming industry as traditional media companies grapple with declining cable subscriptions. Sports content has become a crucial battleground, with networks willing to pay billions of dollars for exclusive rights to popular leagues.
While the delay of Venu Sports is a temporary setback, the case raises broader questions about the future of the sports media landscape. As streaming continues to dominate consumer viewing habits, the industry is likely to witness further consolidation and competition for content.
