Disney, Fox & Warner Brothers Discovery Appeal Venu Sports Injunction Decision
Earlier this year, Disney announced it was teaming up with FOX and Warner Brothers Discovery to launch a brand new sports streaming service called Venu Sports, which bring together the collective companies’ portfolios of sports networks and ESPN+ – including content from all the major professional sports leagues and college sports.
Venu Sports is going to be priced $42.99 per month and will also be available in a bundle with Disney+, Hulu and Max.
Venu Sports was originally scheduled to launch in the fall of 2024. However, those plans are now out the window. Last week, U.S. District Judge Margaret Garnett issued a preliminary injunction against the launch of Venu Sports following a court case brought forward by Fubo TV.
The judge stated that it is “likely to succeed in demonstrating that the JV will substantially lessen competition or tend to create a monopoly in contravention of this country’s antitrust laws. If the JV launches, witness testimony and documentary evidence firmly establish that a swift exodus of large numbers of Fubo’s subscribers (both current and reasonably anticipated near-term future subscribers) is likely, and that Fubo’s bankruptcy and delisting of the company’s stock will likely soon follow. These are quintessential harms that money cannot adequately repair.”
As expected, Disney, Fox and Warner Bros. Discovery have jointly filed an appeal to the temporary injunction. No time frame for when the appeal will begin proceedings has been revealed, but it does mean it is going to miss the start of the NFL season.
Roger’s Take: It’s not a surprise that Disney, FOX and Warner Brothers Discovery are appealing the decision, but should the appeal fail, it’s likely the project will be cancelled, since ever since the joint venture was announced, they stated that the formation and launch of the new service is subject to regulatory approval and the finalization of definitive agreements amongst the parties.
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