Despite Disney’s Surprise Fubo Deal, DirecTV and Dish Signal They May Hold Up Venu Launch

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Despite Disney’s Surprise Fubo Deal, DirecTV and Dish Signal They May Hold Up Venu Launch
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The pay TV distributors raised a red flag to a U.S. district judge over a bid to dismiss an earlier injunction against the sports streamer after a surprise merger of Disney’s Hulu + Live TV and Fubo.

Lawyers for DirecTV and EchoStar’s Dish have asked a U.S. district judge to reconsider a dismissal of claims byU.S. District Judge Margaret M. Garnett of the Southern District in New York in August granted Fubo TV a motion for a preliminary injunction to block the launch of the Venu sports streaming joint venture proposed by.

“This settlement clears the path for Venu to launch unencumbered by removing the injunction the court imposed to preliminarily prevent the immediate and irreparable harms the JV launch presents. DirecTV is just one of several non-parties that expressed ‘grave concerns’ about the impact Venu would have on competition for sports programming,” lawyers for DirecTV argued.

The deal would also create a much bigger player in the virtual multichannel video provider space to take on market leader YouTube TV. “Now, with the injunction undone by voluntary dismissal, DISH, Sling and other distributors will suffer antitrust injury. Their services will be hampered by the massive incentive that the JV defendants have to raise programming fees for distributors that compete against Venu, and they will be effectively foreclosed from competing,” lawyers for EchoStar wrote in their letter to Judge Garnett.

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