The legal battle between FuboTV and media giants Disney, Fox, and Warner Bros. Discovery over the proposed streaming venture Venu Sports continues to heat up. FuboTV, in a recent court filing, has reasserted its claim that Venu Sports would stifle competition and harm the streaming landscape.
With this, Fubo this week warned that it could lose hundreds of thousands of customers and tens of millions of dollars if Venu Sports was able to launch, according to a report from Deadline.
Anti-Competitive Concerns:
FuboTV argues that Venu Sports, backed by the three media conglomerates, would gain an unfair advantage by exclusively distributing their combined sports content without the need to include unwanted non-sports channels. This, FuboTV contends, would “capture hundreds of thousands of subscribers and tens of millions of dollars” from FuboTV alone, potentially driving it into insolvency.
Background of the Case:
FuboTV filed an antitrust lawsuit against Disney, Fox, and Warner Bros. Discovery after they formed Venu Sports last February. In a surprising turn of events, a U.S. District Court judge sided with FuboTV, granting a preliminary injunction to block Venu’s launch. The media companies subsequently appealed the ruling.
FuboTV’s Arguments:
In its latest filing, FuboTV highlights evidence suggesting a “non-compete” agreement among the three media companies, preventing them from offering their networks in any new setting outside of Venu for at least three years. The filing also emphasizes the companies’ significant control over live sports rights in the U.S., exceeding 50% of the market.
Industry Attention:
The case has garnered significant attention within the media industry, with amicus briefs filed in support of FuboTV by DirecTV, Dish Network, and several politicians. The outcome of the case could have far-reaching implications for the future of pay-TV and the evolving dynamics of streaming bundles.
FuboTV’s Perspective:
FuboTV maintains that Venu Sports represents the type of “skinny sports bundle” it has been seeking to launch since its inception. The company claims it was rebuffed when attempting to license sports programming without also carrying major companies’ general entertainment offerings.
Trial and Appeal:
While the appeal of the injunction is ongoing, FuboTV’s main complaint is scheduled to go to trial next October. The outcome of both the appeal and the trial will likely shape the future of sports streaming and the competitive landscape of the media industry.