By Joe Reedy, Sports Writer
NEW YORK (AP) --The launch of Venu Sports will be delayed after a federal judge granted FuboTV’s motion for a preliminary injunction against the planned sports streaming venture by 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 was likely to be successful in proving during a trial that the joint venture would violate antitrust laws, and Fubo and consumers would “face irreparable harm in the absence of 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 Feb. 6.
FuboTV said in its filing that it has tried for years to offer a sports-only streaming service but has been prevented from doing so because of ESPN. Fox and Warner Bros. Discovery have imposed bundling requirements on FuboTV which it says forces “Fubo to spend hundreds of millions of dollars to license and broadcast content that its customers do not want or need.”
“Today’s ruling is a victory not only for Fubo but also for consumers. This decision will help ensure that 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 marketplace is necessary to provide consumers with multiple, robust and more affordable sports streaming options,” Gandler continued. “We will continue to fight for fairness and for what’s best for consumers.”
Venu Sports announced on Aug. 1 it would be available for $42.99 per month with its planned launch in the fall. That launch will likely be 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 ability 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 wrong on the facts and the law, and that Fubo has failed to prove it is legally entitled to a preliminary injunction. Venu Sports is a pro-competitive option that aims to enhance consumer choice by reaching a segment of viewers who currently are not served by existing subscription options.”
ESPN, Fox and Warner Bros. Discovery will each share one-third ownership in the joint venture. The initial term for the three companies to be involved in Venue Sports is nine years, according to term sheets and court filings.
The ruling also drew reaction from cable and satellite companies, who are watching with interest due to their bundling requirements and what companies generally charge in subscriber fees.
“We are pleased with the court decision and believe that it appropriately recognizes the potential harms of allowing major programmers to license their content to an affiliated distributor on more favorable terms than they license their content to third parties,” DirecTV spokesman Jon Greer said.
Sean “Diddy” Combs Is Arrested In NY After Federal Indictment
Sean "Diddy" Combs, the hip-hop mogul who has faced a stream of allegations by women accusing him of sexual assault, was arrested late Monday in New York after he was indicted by a federal grand jury.
The indictment was sealed and details of the charges weren't immediately announced by prosecutors, but the U.S. attorney in Manhattan, Damian Williams, confirmed in a statement that federal agents had Combs in custody.
"We expect to move to unseal the indictment in the morning and will have more to say at that time," Williams said in a statement.
Combs was arrested in a Manhattan hotel lobby, according to a person familiar with the arrest who spoke with The Associated Press on condition of anonymity because they were not authorized to speak publicly.
His lawyer, Marc Agnifilo, said Combs had been cooperating with the investigation and had relocated to New York last week in anticipation of charges being brought.
"We are disappointed with the decision to pursue what we believe is an unjust prosecution of Mr. Combs by the U.S. Attorney's Office," Agnifilo said, describing his client as a music icon and a "loving family man."
"He is an imperfect person, but he is not a criminal," Agnifilo said in a statement, adding "Please reserve your judgment until you have all the facts. These are the acts of an innocent man with nothing to hide, and he looks forward to clearing his name in court."
The criminal charges are a major but not unexpected takedown of one of the most prominent producers and most famous names in the history of hip-hop.
The federal investigation of Combs, 58, was revealed when Homeland Security Investigations agents served simultaneous search warrants and raided Combs' mansions in Los Angeles and Miami... Read More