Federal judge blocks Venu launch due to antitrust concerns

Cites antitrust issues; appeal planned

A federal judge Friday afternoon temporarily blocked plans for Venu to launch later this month due to anti-trust concerns.

Judge Margaret N. Garnett granted the injunction requested by vMVPD Fubo against Disney, Fox. and Warner Bros. Discovery, who formed a joint venture to launch a new sports-centered virtual streaming service. Garnett found reason to believe the JV would be anti-competitive given the three companies would violate antitrust laws the way Venu is structured. The three companies planned to offer channels such as ESPN, TNT, FS1, and more targeted to sports fans for $43 a month.

Venu plans to appeal today’s ruling to the U.S. Court of Appeals for the Second Circuit; it is unknown when or even if the new service will launch. Venu planned to launch next Friday, before the start of football season.

Fubo sued to block the JV in April, stating the idea of three competitors coming together to start a rival streaming service was anti-competitive and could drive them out of business. The JV also would impact other vMVPDs, notably Google’s YouTubeTV, a favorite of sports fans given its lower cost compared to traditional cable and satellite packages. 

Venu didn’t include content from NBCUniversal Paramount Global, pure entertainment channels such as Lifetime, or other RSNs by design. But it wasn’t enough to keep the streamer from being declared illegal by Judge Garnett. Another potential thorn – at least from station groups, was the inclusion of local ABC and Fox affiliates, as the networks typically negotiate carriage agreements under a blanket deal with virtual providers, cutting the station groups out.

Carriers DirecTV and Dish were supporting Fubo, noting their agreements with Disney, Fox, and WBD could undercut their deals with them. The JV also drew scrutiny from Democrats on Capitol Hill, notably Senators Elizabeth Warren (D-MA) and Bernie Sanders (I-VT).