Business
Federal Judge Halts Launch of Venu Streaming Service Amid Antitrust Concerns
A federal judge has paused the launch of Venu Streaming Service due to rising antitrust concerns. This decision raises significant questions about competition in the streaming market and its implications for consumers and content creators.
Judge Issues Preliminary Injunction Against Major Streaming Service Venture
A federal judge in New York’s Southern District has issued a preliminary injunction that effectively halts a planned sports-focused streaming service, known as Venu, backed by major media companies including Disney, Fox, and Warner Bros. Discovery. This ruling, delivered on Friday, raises significant concerns about the potential impact of the joint venture on the competitive landscape of sports viewership.
The 69-page ruling disrupts the companies’ ambitious plans for Venu, which was designed to cater to sports enthusiasts who have turned away from traditional cable television. Initially, Venu was anticipated to launch this fall at a subscription price of $42.99 per month, featuring marquee games from prominent leagues such as the National Football League (NFL), National Basketball Association (NBA), and Major League Baseball (MLB).
However, the announcement of this new service prompted alarm among competitors, notably Fubo, a sports streaming service that quickly took legal action to block the formation of Venu. In its complaint, filed on February 20, Fubo accused Disney, Fox, and Warner Bros. Discovery of engaging in a “long-running pattern” of anticompetitive behavior aimed at undermining its business operations.
The legal proceedings culminated in a hearing earlier this month, centered on whether Fubo could secure a preliminary injunction to prevent Venu from launching. In her ruling, Judge Margaret Garnett expressed that Fubo is likely to succeed in its claim that the introduction of the new service would “substantially lessen competition and restrain trade.” She further emphasized that denying the injunction could hinder the effectiveness of any judicial remedy that might be reached later on in the trial.
- Service Name: Venu
- Backers: Disney, Fox, Warner Bros. Discovery
- Target Audience: Sports fans abandoning cable
- Expected Launch: Fall, at $42.99/month
- Featured Leagues:
- NFL
- NBA
- MLB
- Legal Action: Fubo’s complaint and injunction request