(San Francisco) A US federal court on Friday banned ESPN, Fox and Warner Bros Discovery from launching their joint sports streaming platform, pending the resolution of lawsuits against the partnership, which it accuses of violating competition law.
Fubo, the sports streaming service that filed a lawsuit in April against the alliance between the three media giants, welcomed the “victory.”
“Today’s decision is a victory not only for Fubo, but also for consumers,” said David Gandler, Fubo co-founder and CEO, in a statement.
“This decision will help ensure that consumers have access to a more competitive market with multiple sports streaming options,” he added.
ESPN, Warner and Fox announced plans in February to create a new streaming service that would primarily feature live sports competitions.
Read the article “ESPN, Fox and Warner Bros Discovery launch joint platform”
Called Venu Sports, the platform was due to launch in the United States this fall for $43 per month.
All three entities intend to appeal.
“We believe Fubo’s arguments are factually and legally flawed, and that Fubo has failed to demonstrate that it is legally entitled to a preliminary injunction,” Disney sports channel ESPN said when contacted by AFP.
“Venu Sports is a pro-competitive option that aims to improve consumer choice by offering a subscription option that does not currently exist,” the company added.
U.S. District Judge Margaret Garnett granted Fubo’s motion to block the launch of Venu Sports “because Fubo is likely to successfully prove its claims that the partnership will violate antitrust laws” and “because Fubo and U.S. consumers will suffer irreparable harm absent an injunction.”
After years of creating new streaming platforms, projects for combined offers are multiplying from companies keen to achieve profitability.
Cable operator Comcast is offering “StreamSaver,” which includes Peacock, Netflix and Apple TV+ for $15 per month, 35% less than a subscription to all three platforms.
Long inconceivable, these alliances allow platforms to pool their efforts to attract users and advertisers, but also to gain power during negotiations with content providers, particularly organizers of sporting events.
If Venu Sports “is allowed to launch, it will be the only option in the market for television consumers who want to pay for multiple live sports channels, but not for unnecessary entertainment channels,” the judge said in her decision.
She further notes that the young Fubo company has not yet reached profitability. But if the joint platform were to come to fruition, “a rapid exodus of a large number of Fubo subscribers […] would be likely,” leading to potential bankruptcy, she detailed.