Judge Blocks Launch of Sports Streaming Service

U.S. District Judge Margaret Garnett blocked Discovery, Fox, and Disney's new sports streaming service, Venu, from launching, a major blow to the effort. Judge Garnett that the new offering would “substantially lessen competition and restrain trade.” Fubo, a sports-centric streaming service, sued the three companies earlier this year after they announced the joint venture. Lawyers for Fubo argued that Venu is anticompetitive because Fox, Warner, and Disney force the service to pay for a broad bundle of general entertainment channels without the ability to handpick only the sport-centric channels it wants to distribute. The media companies’ new venture, meanwhile, exclusively offers channels that carry major sporting events. The legal battle over the new service underscores the growing importance of live sports in the streaming era. Sporting events have remained a major draw for viewers and a way for entertainment companies to differentiate their direct-to-consumer offerings.