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U.S. satellite TV provider DirecTV has raised objections to the dismissal of FuboTV’s lawsuit against Venu Sports, a joint venture spearheaded by Walt Disney, Fox Corp, and Warner Bros Discovery Inc. DirecTV argues that the resolution of the lawsuit does not adequately address antitrust concerns surrounding the venture, signaling ongoing tensions in the battle for dominance in the competitive pay-TV market, Reuters reported.
FuboTV initiated the lawsuit in February, alleging that the sports-focused streaming service Venu Sports would harm market competition and lead to increased costs for consumers. In August, a U.S. judge temporarily blocked the venture’s rollout.
However, on Monday, FuboTV requested the U.S. District Court in Manhattan to dismiss its claims after reaching a settlement with Disney, Fox, and Warner Bros Discovery. Under the agreement:
Disney has committed to a $145 million term loan for FuboTV in 2026.
A licensing agreement allows FuboTV to create a sports-focused streaming service using Disney’s sports and broadcast networks, including ABC, ESPN, and ESPN+.
In a letter addressed to Judge Margaret Garnett, DirecTV criticized the settlement, stating it allows the joint venture to maintain control over the future of the live pay-TV market, which could stifle competition.
DirecTV accused the defendants of “paying off” and effectively absorbing FuboTV, the very competitor that flagged antitrust concerns. EchoStar, another satellite TV provider, echoed these sentiments, emphasizing the potential anticompetitive ramifications of the settlement.
The dispute reflects the growing pressure on media companies to secure their foothold in the evolving pay-TV and streaming market.
FuboTV’s settlement may bolster its competitive edge through expanded content offerings and financial backing.
DirecTV’s challenge underscores broader concerns about consolidation and its impact on consumer choice and pricing.
As the case unfolds, it will likely have far-reaching consequences for market dynamics in the pay-TV and sports streaming sectors.
