Lawyers for Disney, Fox, Fubo clash as Venu Sports lawsuit goes to trial – Knowligent
Lawyers for Disney, Fox, Fubo clash as Venu Sports lawsuit goes to trial

Lawyers for Disney, Fox, Fubo clash as Venu Sports lawsuit goes to trial

HomeNewsLawyers for Disney, Fox, Fubo clash as Venu Sports lawsuit goes to trial

Lawyers clashed Tuesday during a key hearing in Fubo's antitrust lawsuit against Disney, Fox and Warner Bros. Discovery, a case with far-reaching implications for the pay TV industry.

Fubo CEO on Disney and Fox lawsuit: 'Sports cartel' hurts customers and competition

The parties met in U.S. District Court in Lower Manhattan following Fubo’s request for a preliminary injunction. If granted (a high hurdle to clear, realistically), the injunction would delay the planned launch of Venu Sports. The streaming sports joint venture was announced in February and immediately drew a lawsuit from Fubo, which claims it would cause “irreparable harm” to its pay-TV business. Fubo CEO David Gandler is scheduled to testify later today, fresh off the company’s strong second-quarter earnings report.

Venu aggregates the feeds of 15 linear networks owned by the companies and offers them in a package for $43 a month, well below what Fubo and other operators charge. The JV member companies have said they view the service as a complement to its main TV package, where it will continue to license its programming. Fox CEO Lachlan Murdoch has said his management team predicts Venu will attract about 5 million subscribers in its first five years of operation.

In his opening statement, Fubo attorney Mark Hansen said the company has long tried to offer a “sports-only” bundle with fewer channels at a lower price. Programmers, including the three behind Venu, have blocked them from doing so, he said. In negotiations over the broadcast, he said, “They’ve said, ‘Sure, you can have some sports, but you have to carry a lot of other stuff.’” That, in turn, forces a price increase to cover the extra programming costs.