Disney, Fox, and Warner Bros. Discovery Shift Focus to Existing Platforms
The highly anticipated launch of Venu Sports, a streaming service backed by Disney’s ESPN (DIS), Warner Bros. Discovery (WBD), and Fox (FOXA), has been canceled. The joint venture, originally slated to debut ahead of the 2024 NFL season, faced regulatory and market pressures that ultimately led to its discontinuation.
“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the three companies announced in a joint statement. “In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels.”
The decision comes shortly after FuboTV (FUBO), an internet TV bundler, settled its antitrust lawsuit against the platform. The settlement coincided with a new partnership between Fubo and Disney’s Hulu + Live TV, positioning Fubo as a stronger player in the sports streaming landscape.
Fubo shares initially surged 10% on Friday following the news but later erased gains. Earlier in the week, Fubo stock had jumped 250% after its deal with Disney was revealed. In contrast, shares of Disney, Warner Bros. Discovery, and Fox all fell on the announcement of Venu’s cancellation.
The Venu Sports platform aimed to consolidate the sports rights of its three backers, offering fans a comprehensive streaming service for $42.99 per month. Executives had projected 5 million subscribers by 2029, targeting “cord cutters” and “cord nevers.” However, delays caused by legal challenges from Fubo and the threat of further lawsuits from DirecTV (T, TPG) and Dish (SATS) likely contributed to the decision to shelve the project.
Despite this setback, Disney is moving forward with its ESPN flagship streaming service, set to launch this fall. Meanwhile, Fox and Warner Bros. Discovery continue to explore ways to expand their sports offerings within their existing platforms.
A DirecTV spokesperson weighed in on the news, affirming the company’s commitment to delivering more choice and value to sports fans.
While Venu Sports will not come to fruition, the decision underscores the evolving dynamics of the streaming market, as media companies adapt to changing consumer demands and regulatory landscapes.
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