Disney and FuboTV's recent settlement over the impending launch of Venu Sports streaming service has sparked concerns among other television distributors, including DirectTV and EchoStar. The settlement, which drops Fubo's antitrust lawsuit against Disney, Fox, and Warner Bros. Discovery, has raised questions about how other TV distributors will be able to compete in the sports streaming space.

FuboTV's decision to settle with Disney, Fox, and WBD comes as part of its plan to merge with Hulu + Live TV. The settlement outlines how Hulu + Live TV and Fubo can create a new multichannel video programming distributor, with Disney owning 70% of the venture. However, the lawsuit's dismissal also lifted the injunction to halt Venu's launch, which was passed down by US District Judge Margaret M. Garnett last August.

DirectTV and EchoStar are now urging the courts to consider how other TV distributors could still be shut out of the sports streaming space. In a letter to Garnett, DirectTV argued that while Venu's venture partners have paid Fubo "to ensure cooperation from an aggrieved competitor," they have also restored "an anticompetitive runway for the JV Defendants to control the future of the live pay TV market."

DirectTV is not alone in its concerns. EchoStar's legal team has also expressed "grave concerns" about the impact Venu would have on competition for sports programming. EchoStar argues that Venu would "offer content in a manner that [the Defendants] do not allow DirectTV or other distributors to offer to consumers."

EchoStar's lawyers went further, stating that the original injunction blocked Disney, Fox, and WBD's "scheme to monopolize the pay-TV market and, once accomplished, charge inflated prices to millions of Americans." They claimed that the parties' settlement appears designed to eliminate court jurisdiction over this multifarious harm by effectuating the preliminary injunction's expiration, rather than addressing the underlying competition issues.

The implications of this settlement are far-reaching, with potential consequences for the entire sports streaming industry. If Venu Sports is allowed to launch without addressing the anticompetitive concerns, it could lead to a monopoly in the pay-TV market, resulting in inflated prices for consumers. The concerns raised by DirectTV and EchoStar highlight the need for closer scrutiny of the sports streaming market to ensure fair competition and protect consumer interests.

As the sports streaming landscape continues to evolve, it remains to be seen how this settlement will impact the industry as a whole. One thing is clear, however: the concerns raised by DirectTV and EchoStar cannot be ignored, and the courts must carefully consider the potential consequences of this settlement on the sports streaming market.