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Blow for ESPN and Fox: US judge stops sports streaming companies | Technology
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Blow for ESPN and Fox: US judge stops sports streaming companies | Technology

The launch of Venu Sports will be delayed after a federal judge granted FuboTV’s request for a temporary restraining order against the planned sports streaming project from ESPN, Fox and Warner Bros Discovery.

US District Judge Margaret M. Garnett in New York stated in her 69-page ruling that Fubo would likely be able to prove in court that the joint venture violated antitrust law and that Fubo and consumers would suffer “irreparable harm without an injunction.”

ESPN, Fox and Warner Bros Discovery said they would appeal the ruling.

FuboTV filed the lawsuit two weeks after ESPN, Fox, Warner Bros Discovery and Hulu announced their plan to offer a sports streaming service on February 6.

FuboTV stated in its complaint that it has tried for years to offer a pure sports streaming service but has been blocked from doing so because of ESPN. Fox and Warner Bros Discovery have imposed bundling requirements on FuboTV, forcing Fubo to spend hundreds of millions of dollars licensing and broadcasting content its customers neither want nor need.

“Today’s ruling is a victory not only for Fubo, but also for consumers. This decision will help ensure consumers have access to a more competitive market with multiple sports streaming options,” said David Gandler, co-founder and chief executive of Fubo, in a statement.

“But our fight continues. Fubo has said all along that we seek equal treatment and a level playing field in our industry from these media giants.”

“A fair and competitive market is necessary to provide consumers with diverse, robust and more affordable sports streaming options,” Gandler continued. “We will continue to fight for fairness and what is best for consumers.”

Venu Sports announced on August 1 that it will be available for $42.99 per month and is expected to launch in the fall, with the launch likely delayed until at least next year.

The platform would include offerings from 14 linear networks – ESPN, ESPN2, ESPNU, SEC Network, ACC Network, ESPNEWS, ABC, FOX, FS1, FS2, Big Ten Network, TNT, TBS, truTV – as well as ESPN+.

Subscribers would have the option to bundle the product with Disney+, Hulu and/or Max.

ESPN, Fox and Warner Bros Discovery said in a joint statement: “We believe that Fubo’s arguments are factually and legally incorrect and that Fubo has failed to demonstrate that it is legally entitled to an injunction.”

“Venu Sports is a pro-competitive option that aims to expand consumer choice by reaching a viewer segment not currently served by existing subscription options.”

ESPN, Fox and Warner Bros Discovery each hold a one-third stake in the joint venture. The initial term of the three companies’ involvement in Venue Sports is nine years, according to agreements and court documents.

The ruling also provoked reactions from cable and satellite companies, which are following the case with interest due to their bundling rules and the subscription fees they typically charge.

Jon Greer, a spokesman for DirecTV, said: “We are pleased with the court’s decision and believe it adequately addresses the potential harm that comes from allowing major programming providers to license their content to an affiliated distributor on more favorable terms than if they license their content to third parties.”

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