Disney (DIS), Fox (FOXA), and Warner Bros Discovery (WBD) are asking the U.S. Court of Appeals to overturn a ruling that blocked their Venu Sports streaming service. The media giants argue that the lower court’s decision was wrong and limits consumer access to a more affordable sports streaming option for cord-cutters and budget-conscious viewers.
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FuboTV (FUBO) sued the companies last February after claiming that Venu Sports would reduce competition and increase prices by violating antitrust laws. A district judge agreed and issued an injunction to halt Venu’s launch. However, the media firms countered that the ruling stifles competition and shields Fubo from rivals, which would ultimately deprive consumers of better pricing and choice.
Bundling Is at the Heart of the Case
At the heart of the case is “bundling.” This would require distributors like Fubo to carry a full package of channels, including less popular ones, to access live sports. Fubo claims that this bundling prevents it from offering a streamlined sports-only service, which Venu Sports would be allowed to do. Interestingly, the Justice Department and several states have backed the injunction and warned that Venu’s formation could monopolize sports content, which would harm competition in the live TV market.
Which Media Stock Is the Best Buy?
Turning to Wall Street, out of the three stocks mentioned above, analysts think that WBD stock has the most upside potential. In fact, WBD’s price target of $12.27 per share implies almost 15% upside potential. On the other hand, analysts expect the least from FOXA stock, as its average price target of $48.07 per share equates to almost 4% downside risk.
