Disney-Fox-Warner sports streaming service blocked by judge
Add Axios as your preferred source to
see more of our stories on Google.

Kansas City Chiefs quarterback Patrick Mahomes looks to throw under pressure from San Francisco 49ers defensive end Nick Bosa in Super Bowl LVIII. Photo: Ethan Miller/Getty Images
A federal judge granted a temporary injunction against an upcoming streaming joint venture formed by Disney, Fox and Warner Bros. Discovery after a rival streamer sued it on antitrust grounds.
Why it matters: The companies' Venu Sports was supposed to launch later this month but now faces an uncertain future.
Catch up quick: In February, Fubo TV filed a lawsuit in an attempt to block the streaming service.
- The company argued the joint venture would give those three less incentive to make their channels available on Fubo and other distributors, as well as charging Fubo above-market rates.
- Last week, Sen. Elizabeth Warren (D-Mass), Sen. Bernie Sanders (I-Vt.) and U.S. Rep. Joaquin Castro (D-Texas) asked the Justice Department to scrutinize the venture over antitrust concerns.
- Venu will include content from linear TV networks housed by the three companies, which include ESPN, ABC, TNT and Fox, among others. It was set to cost $42.99 a month at launch.
- For years, distributors have sought to offer the same type of sports-centric TV package but met resistance from three major entities: Disney, Warner Bros. Discovery and Fox.
Zoom in: The temporary injunction was handed down on Friday, following a weeklong trial in New York's Southern District that concluded on Monday.
- In her ruling, Judge Margaret Garnett said that Fubo "is likely to be successful in providing its claims that [Venu] will violate this country's antitrust claims" and that both Fubo and U.S. customers "will face irreparable harm in the absence of an injunction."
The big picture: Venu was seen as a way for the three companies to reach the increasing number of sports fans who do not subscribe to a pay-TV service.
- For years, live sports was seen as the last pillar holding up the cable bundle, but that is no longer the case.
- In recent years, sports have quickly migrated toward streaming services or back to broadcast television, two distribution methods that don't require a TV subscription.
Yes, but: It's uncertain how large the audience would be for an offering like Venu, as it does not include networks from Paramount or Comcast.
- ESPN is also launching its own streaming service next year that could cannibalize the audience for both.
- A similar offering, Echostar's SlingTV, has existed for years but struggled to catch on with less than 2 million subscribers.
The other side: "We believe that Fubo's arguments are wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction," the three companies said in response to the ruling, adding that they will appeal the ruling.
What's next: Venu has yet to announce a launch date, but Fubo's lawyers revealed during the trial that it was slated for Aug. 23.
Editor's note: This story was corrected to identify Castro as a representative (the previous version referred to him as a senator).
