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Disney, Fox and The discovery of Warner Bros have canceled plans to launch their sports streaming service, Venu, the companies said in a joint statement on Friday.
“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” they said in the statement. “In an ever-changing market, we determined that it was better to respond to the evolving demands of sports fans, focusing on existing products and distribution channels. We are proud of the work that has been done in Venu until The date is grateful to the Venu. staff, which we will support in this transition period.
I was coming first announced in February and intended to unite the live sports assets of Fox, WBD and Disney’s ESPN. It was originally scheduled to launch before the start of the NFL season in September, but it was delayed in part from a legal challenge from Internet TV bundler Fubo, which claimed that the platform would be anti-competitive.
Together, Disney, Fox and WBD control more than 50% of all US sports media rights, and at least 60% of all nationally broadcast US sports rights, according to the judge in the case antitrust.
The news that he wouldn’t launch came as a shock to Venu employees, who found out late Thursday night, according to people familiar with the matter who spoke on condition of anonymity to discuss internal matters. They believed they had a way to launch the service after Disney agreed earlier this week to join their Hulu+ Live TV with Fubusettle all disputes about Venu.
But the judge’s response in Fubo’s lawsuit questioned the legality of cable bundling in general, which prompted Disney to make the deal with Fubo, through which Disney would take 70% control of the resulting company . And two days ago, satellite providers DirecTV and Dish sent letters to the federal court arguing that the legal questions presented by the judge were not answered.
Rather than risk an extended lawsuit that could jeopardize bundling in general — including Disney’s efforts to group its streaming entities (ESPN, Hulu and Disney+) — the three companies decided to pull the plug on Venu, according to the known people.
“DIRECTV remains a leader in sports and we look forward to working with our programming partners – including Disney, Fox and Warner Bros. Discovery – to compete on a level playing field to provide sports fans with more choice, control and value all in one experience.” DirecTV said in a statement.
An announcement for Venu Sports, Disney’s sports streaming venture, Warner Bros. Discovery and Fox, is attached to the Fanatics Fest event in New York City on August 16, 2024.
Jessica Golden | CNBC
The business model of Warner Bros. Discovery relies heavily on negotiating bundled carriage deals for its many cable networks, including CNN, TNT, HGTV and the Food Network.
Disney is targeting an ESPN “Flagship” debut, an all-inclusive ESPN streaming service, by August 2025. The as-yet-unnamed ESPN streaming service will include everything that airs on ESPN’s linear network, unlike ESPN+.
Disney’s deal with Fubo, along with the company’s recent deal renewal with DirecTV, also gives the company new ways to package so-called skinny packages — tighter selections of channels for less money. This was Venu’s idea: sell a smaller number of linear channels for less money than traditional cable TV.
— CNBC’s Lillian Rizzo contributed to this report.
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.
