Disney's Venu Sports Settlement: A Missed Opportunity for Competition?

In a recent turn of events, DirecTV has expressed its concerns about the settlement between Disney, Fox, Warner Bros. Discovery, and FuboTV, arguing that it fails to resolve antitrust issues surrounding the launch of Venu, a joint venture sports streaming service. The settlement, announced on Jan. 6, allows for the launch of Venu, which will offer exclusive rights to license unbundled sports networks. However, DirecTV believes that this settlement does not address the underlying antitrust violations and could lead to an undue competitive advantage for Venu, potentially driving out competitors like DirecTV from the live pay TV market.

DirecTV's concerns are not without merit. The settlement allows Venu to launch unencumbered, potentially driving out competitors and reducing consumer choices. Moreover, the studios' tying practices, which involve bundling products or services together, could lead to higher prices for consumers in the future. This could result in consumers feeling locked into a single service or paying higher prices for the content they want.



The settlement also raises concerns about potential price hikes and consumer harm. DirecTV has argued that the launch of Venu could lead to consumer price hikes and suppress potentially competitive sports bundles. This could result in higher costs for consumers and fewer options in the market. The studios' collective dominance in the sports streaming market could also lead to higher prices for consumers, as they control the exclusive rights to license unbundled sports networks.

The DOJ's involvement in the case could significantly influence the outcome of the antitrust concerns raised by DirecTV. The agency has already expressed its agreement with the court's preliminary injunction, which blocked the launch of Venu pending a full review of the claims against it. The DOJ's amicus brief in the case also expressed the same conclusion as the court, that the launch of Venu would "lessen... current competition by giving Defendants a path to collective dominance and foreclosing Venu’s rivals."



In conclusion, the settlement between Disney, Fox, Warner Bros. Discovery, and FuboTV has raised concerns about potential long-term effects on consumer prices and choices. DirecTV's concerns about the settlement's legality and long-term impact on the market remain uncertain, as the DOJ's involvement could potentially challenge the settlement or take further action. As the competitive landscape for sports streaming services continues to evolve, consumers and investors alike should keep a close eye on the developments surrounding Venu and the potential antitrust violations raised by DirecTV.