The cable industry is facing significant challenges as the decline of the cable bundle accelerates. A recent court ruling has raised concerns about the industry's traditional business model. Venu Sports, a sports streaming service from Disney, Fox, and Warner Bros. Discovery, was set to launch before football season but has hit a roadblock with a preliminary injunction granted to FuboTV, a virtual pay-TV provider.
Fubo argued that it had long sought to offer a sports-focused bundle to cater to soccer fans, but was forced to include non-sports channels by media giants owning major TV networks. This led to a higher pricing model compared to Venu's initial price tag.
US District Judge Margaret Garnett ruled that Fubo would face "imminent irreparable harm" from Venu's launch due to the pricing disparity caused by forced bundling. Garnett's ruling may delay Venu's launch for several more football seasons, impacting its ability to compete with Fubo in the market.
The ruling has sparked discussions about the practice of forced bundling in the cable industry. While Garnett's decision does not outlaw bundling, it may lead to further scrutiny of the practice in a potential jury trial. Media companies have long relied on forced bundling as a revenue stream, but industry experts believe that the practice may be on its last legs.
Overall, the court ruling on Venu Sports and FuboTV highlights the challenges facing the cable industry and the potential impact on its long-standing business model. It remains to be seen how the industry will adapt to changing consumer preferences and regulatory scrutiny in the coming years.