DirecTV And Echostar Express Concerns To The Court About Venu Sports

Disney and Fubo Agreement - Disney entered a definitive agreement with Fubo, acquiring 70% of Fubo and combining it with Disney's Hulu + Live TV [1] - The agreement cleared the path for the roll-out of Venu Sports, a joint venture between Disney, Fox, and Warner Bros Discovery [1][2] - As part of the agreement, Fubo received a cash payment of $220 million and a loan of $145 million from the Venu owners [2] Venu Sports Launch Details - Venu Sports is set to cost subscribers $42.99 per month and will offer sports content from 14 different networks, along with documentaries [3] - The launch was originally scheduled before the 2024 NFL season but was halted due to a preliminary injunction citing antitrust concerns [3] - The injunction was later dropped, potentially allowing a launch as early as March [4] Legal and Antitrust Concerns - DirecTV and Echostar have requested the U.S. District Court to maintain the injunction, citing antitrust concerns [4] - Both companies argue that Venu Sports is anti-competitive, as it allows channels with sports-only content, which other companies are prohibited from offering [5] - The U.S. District Court and the DOJ previously agreed that Venu Sports violated competitive laws, leading to the preliminary injunction [5] Industry Impact - DirecTV and Echostar claim that the settlement between Disney, Fox, Warner Bros Discovery, and Fubo does not resolve the underlying antitrust violations [6] - They argue that the settlement allows Venu Sports to launch without addressing the competitive issues, potentially harming consumers and distributors [7] - The removal of the injunction could lead to increased programming fees for competing distributors like DISH and Sling, further stifling competition [8] Potential Delays - Despite the agreement, the planned roll-out of Venu Sports may continue to face delays due to ongoing legal challenges from DirecTV and Echostar [9]