A massive sports streaming service backed by some of the biggest names in media recently hit a major legal roadblock. The proposed platform, Venu Sports—a joint venture by Disney through ESPN, Warner Bros. Discovery, and FOX—is designed to cater to people who have dropped cable TV, also known as cord-cutters, and rival traditional pay TV, was temporarily blocked by a U.S. judge.
Venu Sports is set to rival pay TV services such as FuboTV and DirecTV, as well as established streaming brands like Apple TV+ and Amazon Prime. The platform plans to offer a wide array of networks from its parent companies, including the full suite of sports channels from FOX, ESPN, and Turner. Venu Sports is expected to establish itself immediately, but some brands are raising questions about such a powerful conglomerate.
Most notably, FuboTV filed an antitrust suit in the U.S. District Court for the Southern District of New York. U.S. District Judge Margaret M. Garnett granted FuboTV’s motion for a preliminary injunction, temporarily halting the launch of Venu Sports. FuboTV and its lawyers argue that the joint venture could cause “irreparable harm” to both the company and its consumers. The ruling means Venu Sports, which was set to debut this fall, will not move forward as planned.
In a statement, ESPN, Fox, and Warner Bros. Discovery expressed their disagreement with the decision and announced plans to appeal. They argue that Venu Sports is a pro-competitive option intended to ‘enhance consumer choice’ by reaching viewers who aren’t currently served by existing subscription services.
Venu’s fate remains uncertain as legal challenges continue to delay its launch. Set for launch later in the year, the service is expected to be available for $42.99 per month, or about $515 per year. Consumers would also have the option to bundle their plan with other subscription services including Disney+, Hulu, or Max.
“This is an incredible opportunity to build and grow a differentiated product that will serve passionate sports fans in the U.S. outside of the traditional pay TV bundle,” Venu Sports CEO Pete Distad said. The newly appointed CEO and former Apple executive is behind Apple’s expansion into the sports scene, including Friday Night Baseball, Apple TV+’s exclusive MLB deal, and MLS Season Pass, home to every game in Major League Soccer and icon Lionel Messi.
