In this article, Disney, Fox, and Warner Bros. Discovery have announced the cancellation of their plans to launch the sports streaming service, Venu, as stated in a joint statement released on Friday. The companies expressed that after careful consideration, they have collectively decided to discontinue the Venu Sports joint venture and forego the launch of the streaming service. They mentioned that in a constantly changing market, they concluded that it would be more beneficial to address the evolving needs of sports fans by concentrating on existing products and distribution channels. The companies acknowledged the efforts put into Venu so far and expressed gratitude to the Venu staff, whom they will assist during the transition period.
Venu was initially revealed in February with the aim of combining the live sports assets of Fox, Warner Bros. Discovery, and Disney-owned ESPN. Originally scheduled to debut before the NFL season kickoff in September, the launch was delayed partly due to a legal challenge from internet TV provider Fubo, alleging that the platform would create anti-competitive conditions.
Together, Disney, Fox, and Warner Bros. Discovery control over 50% of all U.S. sports media rights and at least 60% of all nationally broadcast U.S. sports rights, according to the judge overseeing the antitrust case.
The decision not to proceed with the launch came as a surprise to Venu employees, who were informed late Thursday night, according to sources familiar with the matter speaking anonymously. They believed they had a viable path forward to introduce the service after Disney’s recent agreement to merge Hulu+ Live TV with Fubo, resolving all disputes related to Venu.
However, the judge’s remarks in Fubo’s lawsuit raised concerns about the legality of cable bundling in general, leading Disney to strike a deal with Fubo, where Disney would hold a 70% stake in the resulting company. Additionally, satellite providers DirecTV and Dish raised legal questions in federal court letters, prompting the three companies to halt Venu to avoid a prolonged legal battle that could impact bundling practices, including Disney’s bundling efforts with its streaming services (ESPN, Hulu, and Disney+).
DirecTV stated, “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 deliver sports fans more choice, control, and value all in one experience.”
Warner Bros. Discovery heavily relies on negotiating bundled carriage agreements for its various cable networks like CNN, TNT, HGTV, and Food Network.
Disney is preparing to launch ESPN “Flagship,” an all-inclusive ESPN streaming service, in August 2025. This unnamed ESPN streaming service will offer all content aired on ESPN’s linear network, unlike ESPN+.
Disney’s recent deal with Fubo and the renewal of carriage agreements with DirecTV provide new opportunities for the company to offer “skinny bundles” – smaller channel selections at lower costs. This was the concept behind Venu: providing fewer linear channels at a reduced price compared to traditional cable TV offerings.
— CNBC’s Lillian Rizzo contributed to this report.
Disclosure: Comcast, the parent company of CNBC, is a co-owner of Hulu.
