Disney, Fox and Warner Bros. scrap Venu sports streaming service

The Walt Disney Co., Fox Corp. and Warner Bros. Discovery Inc. are scrapping plans to create a joint sports streaming service, just days after settling a lawsuit brought against the three companies alleging the platform would squelch competition. Read Ad Age’s 2025 predictions stories here “After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the companies said in a statement Friday. “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. We are proud of the work that has been done on Venu to date and grateful to the Venu staff, whom we will support through this transition period.” Earlier this week Disney agreed to merge its Hulu + Live TV streaming service with the online sports-focused company FuboTV Inc., settling all litigation related to Venu Sports. The idea for Venu Sports was hatched last year as the three media companies decided to pool their most valuable sports content into a streaming package, to reach fans who wanted access to live sports content without the cable package. The plan was immediately opposed by Fubo, which sued the group on the grounds that it would kill Fubo, by not letting it carry a handful of sports-focused channels, and raise prices for consumers. The Justice Department also planned to scrutinize the project. In August, Federal Judge Margaret Garnett ruled that the suit was likely to be upheld and issued an injunction temporarily barring the launch of Venu. A hearing was set for Jan. 6, the same day Disney and Fubo announced their deal and the agreement to settle the lawsuit. Other competitors also weighed in to oppose the launch of Venu Sports, which was planned for later this year. Earlier this week EchoStar Corp. and pay-TV provider DirecTV Inc. wrote to Garnett, saying that Disney’s agreement with Fubo doesn’t resolve the anticompetitive aspects of Venu Sports. Live sports is one of the most profitable areas of TV. As more consumers discontinue their cable subscriptions, the major players are rethinking how to package and price sports content. The move to abandon Venu Sports suggests Disney will pivot to focus on the upcoming launch of its flagship ESPN streaming product, Geetha Ranganathan, an analyst at Bloomberg Intelligence, wrote in a note. “We suspect that Disney will try to license some sports content from Fox to beef up its offering. Disney owns one-third of major US sports rights, suggesting that the ESPN product could garner 10 million subscribers by 2026 with Venu being scrapped.” —Bloomberg News Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

Disney, Fox and Warner Bros. scrap Venu sports streaming service

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