Disney, Fox, and Warner Bros. Discovery have officially decided to abandon their planned sports streaming service, Venu, the companies announced 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,” the statement read.
“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 done on Venu to date and deeply appreciative of the efforts of the Venu staff, whom we will support through this transition period.”
Originally revealed in February, Venu was intended to integrate the live sports assets of Disney’s ESPN, Fox, and Warner Bros. Discovery (WBD).
The platform was slated to debut before the NFL season in September but faced delays, partly due to a legal challenge from internet TV bundler Fubo, which alleged the service would create an anticompetitive environment.
According to the judge presiding over the antitrust case, Disney, Fox, and WBD collectively control over 50% of U.S. sports media rights and at least 60% of nationally broadcast U.S. sports rights, making the competitive implications significant.
Sudden Shift in Plans
The announcement to discontinue Venu came as a surprise to its employees, who were informed late Thursday night, according to sources familiar with the situation.
Earlier in the week, optimism about a path forward had grown after Disney reached a deal to merge its Hulu+ Live TV service with Fubo, resolving all related litigation regarding Venu.
However, the judge’s remarks during Fubo’s lawsuit cast doubt on the legality of cable bundling practices, prompting Disney to finalize the merger with Fubo, which granted Disney 70% control of the resulting company.
The situation intensified when satellite providers DirecTV and Dish submitted letters to federal court, arguing that the legal uncertainties raised by the judge remained unresolved.
Faced with the prospect of prolonged litigation that could disrupt bundling practices—critical to Disney’s plans for integrating its streaming services (ESPN, Hulu, and Disney+)—the three companies chose to terminate Venu, according to sources familiar with the matter.
Statements from Stakeholders
DirecTV, a prominent player in the sports broadcasting space, addressed the situation in a statement:
“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 and deliver sports fans more choice, control, and value all in one experience.”
Implications for Warner Bros. Discovery and Disney
Warner Bros. Discovery’s reliance on bundled carriage agreements for its cable networks, including CNN, TNT, HGTV, and Food Network, underscores the importance of protecting such business models.
Meanwhile, Disney is pushing forward with its plans for ESPN “Flagship,” a comprehensive ESPN streaming service set to launch in August 2025. This new platform will offer everything currently available on ESPN’s linear network, distinguishing it from the more limited ESPN+.
Disney’s recent agreement with Fubo, combined with its carriage renewal with DirecTV, provides new opportunities to market so-called skinny bundles—smaller, less expensive channel packages.
Venu was envisioned as a means to deliver these narrower channel selections for a lower price than traditional cable TV, but Disney, Fox, and WBD have decided to pursue other strategies to achieve this goal.