Disney Streams Blocked by Judge Ahead of NFL Kickoff

Judge halts Disney, Fox and Warner streaming service, calls FuboTV lawsuit likely proven

A federal judge has temporarily blocked a plan by Walt Disney, Fox and Warner Bros Discovery to launch a new streaming platform, Venu Sports, saying FuboTV's antitrust lawsuit is likely valid.

A federal judge temporarily blocked Walt Disney Co (DIS.N), Fox Corp (FOXA.O) and Warner Bros. Discovery Inc (WBD.O) from launching a new sports streaming platform, saying FuboTV Inc (FUBO.N) is likely to succeed on its claim that the venture would be anti-competitive.

U.S. District Judge Margaret Garnett in New York said in a ruling made public on Friday that a temporary injunction was appropriate because Fubo was "likely to suffer irreparable harm" absent one.

Fubo said in its Feb. 20 lawsuit that the proposed venture would "destroy competition and inflate prices for consumers."

Judge Garnet's Ruling: https://www.reuters.com/legal/transactional/22-cv-1590-margin-order-04-29-2023-margaret-k-garrity-united-states-magistrate-judge-s-d-n-y-2023-04-29/

Venu Sports: A Partnership Between Fox, Disney, and Warner Bros Discovery

Fox, Disney's ESPN, and Warner Bros Discovery announced plans earlier in February to launch a streaming service focused on sports, later named Venu Sports, to attract younger viewers. https://www.reutersconnect.com/all?search=all%3AL4N3ER5AS&linkedFromStory=true

The Partnership's Response

In a statement, the three companies expressed their disagreement with the court's ruling and Fubo's arguments:

"Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options."

Representatives for the other parties did not immediately provide comments on Friday.

Venu Sports intended to launch this fall in the United States, offering 14 live sports channels and a broad content library. The partnership set a goal of attracting 5 million subscribers within five years.