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 response to the dynamic market conditions, they concluded that it would be more beneficial to address the changing 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 towards the Venu staff, whom they will assist during the transition period.
Venu was initially unveiled in February with the aim of integrating 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 dispute initiated by internet TV provider Fubo, alleging that the platform would create anti-competitive conditions.
Collectively, 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 who spoke on condition of anonymity to discuss internal affairs. Despite believing they had a viable path forward for the service following Disney’s recent agreement to merge Hulu+ Live TV with Fubo, resolving all disputes related to Venu, the judge’s remarks in Fubo’s lawsuit raised concerns about the legality of cable bundling in general. This prompted Disney to reach an agreement with Fubo, where Disney would acquire a 70% stake in the resulting entity. Additionally, satellite providers DirecTV and Dish raised legal concerns in federal court letters, leading the three companies to opt out of launching Venu to avoid potential risks associated with an extended legal battle that could impact bundling practices.
DirecTV expressed its commitment to collaborating with programming partners like Disney, Fox, and Warner Bros. Discovery to enhance competition and provide sports fans with more options, control, and value. Warner Bros. Discovery heavily relies on negotiating bundled carriage agreements for its various cable networks, such as CNN, TNT, HGTV, and Food Network.
Disney is preparing to introduce ESPN “Flagship,” an all-encompassing ESPN streaming service, by August 2025. This unnamed ESPN streaming service will offer content equivalent to what is broadcast on ESPN’s linear network, unlike ESPN+.
Disney’s recent agreements with Fubo and DirecTV offer new avenues for packaging “skinny bundles,” which are streamlined channel selections at lower costs. The concept behind Venu was to offer a reduced number of linear channels at a lower price compared to traditional cable TV packages.
— CNBC’s Lillian Rizzo contributed to this report.
Disclosure: Comcast, the parent company of CNBC, is a co-owner of Hulu.
