Venu was blocked on its drive to the goal.
Disney, Fox and Warner Bros. Discovery on Friday said they would scrap their ambitious plans for a bundled sports streamer that would show all their game telecasts and studio programs, citing a need to “meet the evolving demands of sports fans by focusing on existing products and distribution channels.” The decision surfaces after Disney agreed to take a stake in the Fubo streaming service and fold its Hulu live-TV service into it.
“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. “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.”
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Venu was supposed to open new space in the sports-media world — a stand-alone streamer that would give subscribers access to all sports from ESPN, Warner and Fox. In all, fans would be able to stream the offerings of 14 different TV networks as well as a library of documentaries and other programs from the archives of ESPN, Fox Sports and others. The companies initially sought $42.99 per month for the product and spurred huge debates about whether such a venture could succeed without NFL properties that are distributed via Amazon, NBC and CBS.
The companies were confident enough in their plans last Spring that they opened commercial inventory to potential advertisers in the 2024 upfront.
By August, however, the field of play had grown more complex. Just weeks before Venu was to launch, timed to the start of the 2024 NFL season, a judge blocked it with an injunction. Fubo, a smaller streaming service with a heavy tilt into sports, claimed Venu would “substantially lessen competition and restrain trade.”
Disney appeared to have solved the problem earlier this week, when Fubo dropped its Venu suit after Disney agreed to buy a 70% stake in the company, which will sell both its own namesake service as well as the live-TV product currently available via Disney’s Hulu.
In making that deal, however, Disney changed the field. It will soon have a portfolio of products for sports, and likely did not see the need for Venu any longer. Disney’s ESPN is expected to launch a stand-alone streamer, known internally as “Flagship,” later this year. The company has also made some ESPN programming available via Disney+, and also has an ESPN+ broadband product.
The new “Flagship” is the top priority among Disney’s streaming sports initiatives, according to a person familiar with the matter. Fans who want to gain access to more than ESPN sports can do so via a range of subscription options, this person says, lessening the need for Venu in the market.
Venu may have faced other challenges had its backers moved forward. Satellite operators DISH and DirecTV had sent a letter of complaint to the court that had jurisdiction of the Fubo case.
No matter. Before it could open, Venu is closed.