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    Court Halts Venu Launch Amid Antitrust Battle With Fubo TV

    nephilaBy Business And Money 5 Mins Read

    Recent developments regarding Fox and FuboTV have been significant, particularly in the context of a legal battle over a new sports streaming service. Fox, along with Disney and Warner Bros. Discovery, had planned to launch a joint sports streaming venture called Venu Sports, which was expected to offer extensive sports content for $42.99 per month. This service was set to compete directly with other streaming platforms like FuboTV.

    However, FuboTV filed a lawsuit claiming that this new venture would monopolize the sports streaming market and force smaller services like Fubo out of business. A federal judge recently ruled in favor of FuboTV, granting a preliminary injunction that blocks the launch of Venu Sports, citing potential violations of antitrust laws. This decision is seen as a significant victory for FuboTV, ensuring that they can continue to operate without the immediate threat of losing subscribers to the new service.

    Fox, Disney, and Warner Bros. Discovery have stated their intent to appeal the ruling, arguing that their venture is pro-competitive and will enhance consumer choice. The outcome of this legal battle could have major implications for the future of sports streaming​ (TheWrap)​ (ABC17NEWS).

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    A dramatic twist unfolded in the digital battleground of sports streaming, as a U.S. judge slammed the brakes on the much-anticipated debut of Venu—a collaboration between media behemoths Disney, Warner Bros. Discovery, and Fox. The ruling came in response to a fiery lawsuit ignited by Fubo TV, a competitor that claimed the forthcoming service would wield a monopolistic sledgehammer, crushing its own operations just as the NFL season looms on the horizon.

    Fubo, a maverick in the internet TV bundle space, akin to a tech-savvy cousin of old-school pay-TV, wasn’t about to let Venu steamroll into the market unchallenged. Their lawsuit, a battle cry against what they saw as an anticompetitive juggernaut, sent ripples through the industry, triggering a 16% surge in Fubo’s stock—an emphatic cheer from investors in the face of adversity.

    David Gandler, the unyielding CEO of Fubo, hailed the court’s decision as a triumph not just for his company, but for consumers across the board. “This ruling is more than a legal win—it’s a declaration that the market won’t be monopolized,” Gandler proclaimed, positioning Fubo as the flag-bearer of competitive integrity in a fast-evolving streaming war.

    The backstory of this legal skirmish dates to February when Warner Bros. Discovery, Fox, and Disney’s ESPN forged an alliance to birth Venu, a venture that Fubo swiftly branded as the epitome of market dominance. With an antitrust lawsuit, Fubo sought to pull the emergency brake on this juggernaut before it could bulldoze through the competition. The outcome of their legal gambit has now temporarily stalled Venu’s momentum, but the battlefield remains fraught with tension.

    However, the triumvirate behind Venu was not about to take this setback lying down. In a defiant joint statement, they vowed to fight back, painting Venu as a beacon of consumer choice, aimed at reaching underserved audiences who had been neglected by current subscription offerings. The companies condemned the court’s decision, pledging to appeal and insisting that Fubo’s allegations were baseless—a mere speed bump on their road to revolutionizing sports streaming.

    With a proposed price tag of $42.99 per month, Venu wasn’t just another service—it was poised to be a powerhouse, flaunting an all-star lineup of live sports, from NBA showdowns to MLB slugfests, alongside collegiate clashes and more. Subscribers were promised the full gamut of sports entertainment, with access to prestigious networks like ESPN, ABC, Fox, and TNT, plus the bonus of ESPN+.

    Judge Margaret Garrett, in delivering the injunction, highlighted the immense clout these three corporations already wield, controlling a colossal chunk of U.S. sports rights—54% of all sports rights and 60% of national broadcasts, to be exact. Her ruling underscored the peril of allowing these giants to coalesce into an even more formidable force, a move she deemed detrimental to the delicate balance of competition in the market.

    This legal melee has captured the attention of not just the media world, but also powerful lawmakers like Senators Elizabeth Warren and Bernie Sanders, who have thrown their weight behind scrutinizing Venu’s potential impact. Their involvement underscores the broader implications of this battle, which could reshape the future of how sports content is consumed, altering the very landscape of digital entertainment.

    Major Points

    • A U.S. judge halts the launch of Venu, a streaming venture by Disney, Warner Bros. Discovery, and Fox, following an antitrust lawsuit by Fubo TV.
    • Fubo TV, claiming the service would monopolize the sports streaming market, saw its stock surge 16% after the ruling.
    • Fubo’s CEO David Gandler celebrates the decision as a victory for market competition and consumer choice.
    • The ruling highlights concerns over the three companies controlling 54% of U.S. sports rights and 60% of national broadcasts.
    • Venu’s future hangs in the balance as the companies plan to appeal, with lawmakers like Elizabeth Warren and Bernie Sanders scrutinizing the case.

    James Kravitz – Reprinted with permission of Whatfinger News

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