Disney, Fox and Warner’s sports streaming project has been blocked by a US judge

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A US judge has temporarily blocked the launch of a sports streaming service made up of Disney’s ESPN, Warner Bros and Fox, finding it likely to “substantially lessen competition” in the market.

The service, called Venu, was expected to launch later this year. But FuboTV, a sports-focused streaming platform, filed an antitrust lawsuit in February to block it, arguing that its business “would suffer irreparable harm” as a result.

On Friday, US District Judge Margaret Garnett in New York granted an injunction to halt the service’s launch while Fubo’s lawsuit against the entertainment giants works its way through court.

The opinion was sealed, but the judge noted in a court filing that Fubo would be “likely to succeed on its claims” that by entering into the agreement the companies would “substantially lessen competition and restrain trade in the relevant market ”, in violation of antitrust law.

In a statement, ESPN, Fox and Warner Bros Discovery said they plan to appeal the decision.

Venu was aimed at US consumers who had either ditched their traditional pay-TV streaming packages or never signed up for a cable subscription. “Cord cutting” eroded the traditional television business for years, but live sports remained a primary draw for customers who kept their cable subscriptions.

Fubo TV launched in 2015 as a sports-focused streamer. Offers more than 350 channels – including major sporting events such as Premier League football, baseball, the National Football League and the US National Basketball Association – at monthly subscription prices starting at $79.99 . Its deals include networks owned by Disney and Fox.

ESPN, Fox and Warner Bros said Venu is “pro-competitive”, aimed at reaching “viewers currently underserved by existing subscription options”.

Venu was expected to charge $42.99 per month when it launched later this month. “It will feature just 15 channels, all featuring popular live sports – the kind of poor sports package that Fubo has tried to offer for nearly a decade, only to be met with tooth and nail resistance,” Fubo said in -a court case that requested an order.

Venu was expected to collect about $16 billion worth of sports rights, analysts estimated. It was not expected to impact the ability of individual companies to enter into new rights agreements.

Analysts questioned its market position. Disney plans to launch ESPN as a “premium” streaming service in August 2025 that will carry programming that appears on network TV, as well as games, shopping and other interactive content. Disney chief executive Bob Iger said he wants the service to become “the preeminent digital sports platform.”

Fubo shares rose 16.8% after the ruling, but shares are down 51% this year.