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A U.S. federal judge on Friday temporarily blocked ESPN, Fox and Warner Bros Discovery from launching a joint sports streaming service, as the question of whether the platform violates antitrust laws plays out through the courts.
Fubo, one of the sportscasters who filed the lawsuit in April, called the injunction a “victory.”
ESPN, Warner Bros., and Fox announced in February that they would create a new streaming service called Venu Sports.
U.S. District Judge Margaret Garnett on Friday granted Fubo’s request to block the launch in part because “Fubo is likely to succeed in proving its claims that (the project) would violate the antitrust laws of this country.”
She also added that “Fubo and American consumers will face irreparable harm in the absence of an injunction.”
“Today’s ruling is a victory not only for Fubo but also for consumers,” Fubo co-founder and CEO David Gandler said in a statement.
“This decision will help ensure consumers have access to a more competitive marketplace with multiple sports streaming options.”
The three companies behind Venu Sports intend to appeal.
“We believe that Fubo’s arguments are wrong on the facts and the law, and that Fubo has failed to demonstrate that he is legally entitled to a preliminary injunction,” Disney-owned sports channel ESPN told AFP.
She added that her new platform will reach “a segment of viewers who are not currently served by existing subscription options.”
Live streaming platforms, which have proliferated in recent years, have recently begun to combine to create shows aimed at achieving greater profitability.
One example is the new StreamSaver bundle from TV and internet giant Comcast, which bundles Peacock, Netflix, and AppleTV+ for $15 a month — a price 35 percent cheaper than buying each service separately.
Such alliances allow platforms to pool efforts to attract users and advertisers, while also providing leverage in negotiating with content providers, especially sporting event organizers.
If Venu Sports is allowed to launch, “this will be the only option in the market for TV consumers who want to spend their money on the many live sports channels they love to watch, but not on the unnecessary entertainment channels they don’t,” Garnett said.
She also noted that Fubo has yet to reach profitability. If Venu Sports comes to fruition, she said, it would likely lead to a “rapid exodus of Fubo subscribers” as well as bankrupt the company.
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