Disney, Fox, WBD exit streaming venture
Venu was blocked on his way to goal.
Disney, Fox and Warner Bros. Discovery said Friday they would scrap their ambitious plans for a bundled sports streamer that would show all their game broadcasts and studio programming, citing the need to “meet the changing demands of sports fans by focusing on existing products and distribution channels.” The decision comes after Disney agreed to take a stake in the Fubo streaming service and include its Hulu live TV service.
“After careful consideration, we have mutually agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the companies said in a statement. “In an ever-changing marketplace, we determined it was best to meet the changing demands of sports fans by focusing on existing products and distribution channels. We are proud of the work done at Venu to date and are grateful to the Venu employees, whom we will support during this transition period.”
Venu was supposed to open a new space in the sports media world – a standalone streamer that would give subscribers access to all sports from ESPN, Warner and Fox. In total, fans would be able to stream offerings from fourteen different TV networks, as well as a library of documentaries and other programs from the archives of ESPN, Fox Sports and others. The companies initially charged $42.99 per month for the product, sparking major debates over whether such a venture could succeed without NFL properties distributed through Amazon, NBC and CBS.
The companies were confident enough in their plans last spring that they opened up commercial inventory to potential advertisers starting in 2024.
By August, however, the playing field had become more complex. Just weeks before Venu was set to launch, timed to the start of the 2024 NFL season, a judge blocked the launch with an injunction. Fubo, a smaller streaming service with a heavy focus on sports, claimed that Venu would “materially reduce competition and restrict commerce.”
Disney appeared to have resolved the issue earlier this week, when Fubo dropped its Venu lawsuit after Disney agreed to buy a 70% stake in the company, which has both its own eponymous service and the live TV product currently available is going to sell through Disney’s. Hulu.
However, by making that deal, Disney changed the game. It will soon have a portfolio of products for the sport and probably no longer saw the need for Venu. Disney’s ESPN is expected to launch a standalone streamer, known internally as ‘Flagship’, later this year. The company has also made some ESPN programming available through Disney+, and also has an ESPN+ broadband product.
The new “Flagship” is the top priority among Disney’s streaming sports initiatives, according to a person familiar with the matter. Fans who want to access more than just ESPN sports can do so through a range of subscription options, this person said, reducing the need for Venu in the market.
Before it could open, Venu closed.
