LightShed: Small Bundles Would End Venu Suit; DOJ, States Back Fubo
Cable programmers could end the lawsuit against their Venu sports streaming partnership if they allowed multichannel video programming distributors to offer more customized programming bundles, LightShed Partners blogged Friday. The source of the Venu suit is that third-party distributors aren't…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
offered "Venu-like bundles," LightShed said. The big bundle's future "is grim at best," and now might be a good time to allow MVPDs to offer smaller bundles and reduce or end minimum penetration requirements, it added. That could slow the demise of linear TV, though it also would hasten the end of non-core non-sports networks like MTV, TLC and USA, LightShed said. DOJ and various states are backing fuboTV in its litigation against Venu and its defense of a preliminary injunction against Venu (see 2408160040). Disney, Fox and Warner Bros. Discovery -- the Venu partnership -- is challenging the injunction. In a docket 24-2210 amicus brief last week filed with the 2nd U.S. Circuit Court of Appeals on behalf of fuboTV, 16 states and the District of Columbia said the "no duty to deal" doctrine -- under which businesses aren't liable for unlawful monopolization by refusing to do business with competitors -- doesn't shield those businesses from antitrust scrutiny of anticompetitive joint conduct. Signing the amicus brief were New York, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, Oregon, Pennsylvania, Rhode Island, Vermont and Washington. DOJ, in an amicus brief, dismissed the programmers' argument that it's not anticompetitive to stop rivals from getting unbundled sports channels because there's no antitrust duty to deal with distributors. "That argument is a red herring," and the appeal is about creation of Venu as a violation of the Clayton Act, DOJ said. Asked whether the change in administrations and the Donald Trump DOJ might have a different stance, a fubo spokesperson emailed that "we believe our issue is bipartisan."