Judge temporarily blocks launch of new Venu Sports streaming service from ESPN, Fox and Warner Bros. Discovery

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

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

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 said in its complaint that it has been trying to offer a pure sports streaming service for years but has been blocked from doing so because of ESPN, Fox and Warner Bros. Discovery have imposed bundling requirements on FuboTV that force 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 for consumers as well. This decision will help ensure consumers have access to a more competitive marketplace with multiple sports streaming options,” Fubo co-founder and CEO David Gandler said in a statement. “But our fight continues. Fubo has said all along that we seek equal treatment from these media giants and a level playing field in our industry.”

“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 would be available for $42.99 per month when it launches this fall.

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 Fubo's arguments are incorrect as to the facts and law 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 increase consumer choice by reaching a segment of viewers currently not served by existing subscription options.”

ESPN, Fox and Warner Bros. Discovery will each own a one-third stake in the joint venture.

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.

In a statement to CBS News Friday evening, a DirectTV spokesperson 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.”