Disney and Fubo Battle in Court Over the Launch of Venu Sports
With Venu Sports set to launch this fall, bringing together the biggest sports channels from ESPN, Fox, and Warner Bros. Discovery, Fubo has asked a Lower Manhattan judge for a preliminary injunction.
Fubo quickly filed an antitrust lawsuit against the three partnering entities, just hours after their new sports-centric streaming service was announced in February.
“Each of these companies has consistently engaged in anti-competitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice,” Fubo CEO David Gandler said at the time.
Photo: Fubo
“By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market. This strategy ensures that consumers desiring a dedicated sports channel lineup are left with no alternative but to subscribe to the Defendants’ joint venture.”
The Antitrust Lawsuit Kicks Off
According to Deadline, during their opening argument, Fubo said that the company has long wanted to offer a “sports-only” bundle but was prevented from doing so by programmers. The company’s lawyer, Mark Hansen, explained that in carriage negotiations, “They’ve said, ‘Sure, you can have some sports, but you have to take a lot of other stuff.’”
Photo: Deadline
Disney, Fox, and Warner Bros., meanwhile, argue that a ruling in Fubo’s favor would harm consumers, outlaw competition, and violate the free market. Disney’s attorney, Wes Earnhardt, also noted that the Supreme Court had long ruled that bundling was permissible. Since then, it has been standard practice in television negotiations.
Photo: Venu
“This should not be a referendum on bundling,” he said. “If they wanted to complain about bundling, they should have come here 40 years ago.”
Venu Sports Is Set to Launch This Fall
When Venu Sports launches, it will cost users $43 a month. That price point is far below what Fubo offers.
As the television landscape continues to transition from analog to streaming, Judge Margaret Garnett’s ruling in the Fubo case could have longstanding ramifications.
Venu
For now, however, it looks like Venu will still launch this fall.
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below. One of the agents from MickeyTravels, a Diamond-level Authorized Disney Vacation Planner, will be in touch soon! Also, Thanks for reading!
