A New York judge has halted the debut of a proposed joint venture between several major media companies aimed at launching a streaming platform for live sports.
The venture, named Venu, was set to offer direct-to-consumer streaming of NFL, NHL, and NBA games among other sports content, featuring programming from major media players like Disney’s ESPN, Warner Bros. Discovery’s Turner Sports, and Fox, known for its extensive coverage of NFL and college football.
The companies had intended to roll out Venu this month, with a subscription fee approaching $50 per month.
Following the announcement of the venture this spring, Fubo, a live TV streaming service known for its sports-centric package, filed a lawsuit against the media giants, accusing them of anti-competitive practices.
In her ruling on Friday, U.S. District Judge Margaret Garnett stated that Fubo’s likelihood of success in proving antitrust violations, the potential irreparable harm to both Fubo and American consumers, and the public interest in maintaining the current market conditions justified the injunction.
The project faced anticipated regulatory challenges, reflecting the scrutiny from competitors and concerns from critics. A recent letter from Democratic lawmakers, including Sens. Elizabeth Warren and Bernie Sanders and Rep. Joaquin Castro, expressed fears that the venture could dominate over 80% of nationally broadcast sports and more than half of national sports content, potentially leading to monopolistic control.
Live sports are a critical audience driver for major media companies, even as tech giants like Netflix, Amazon, and Apple invest heavily in sports content. DirecTV, a leading cable provider, welcomed the judge’s ruling, asserting that it protects against potential harms from preferential licensing agreements between major programmers and their affiliated distributors.