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The End of Venu
Venu, the sports-focused streaming venture proposed by the Walt Disney Co., Fox Sports, and Warner Bros. Discovery, will not see the light of day. The partners announced on Friday that they have decided not to move forward with the service, just days after settling a lawsuit that had been blocking its launch.
Reason for Discontinuation
“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service. In an ever-changing marketplace,” the companies said in a joint statement. “We determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels.”
What Was Venu?
Venu was initially announced in 2024 as a slimmed-down streaming package that would have offered popular channels such as ESPN, TNT, ABC, and Fox Sports. Priced at $42.99, the product was targeted towards young fans who were looking for a more affordable alternative to traditional cable TV packages.
Legal Battles and Settlements
Fubo, a New York-based company offering a similar service, took Venu to court, claiming that it was anti-competitive. A federal judge sided with Fubo and temporarily halted the launch of Venu, stating that it would “substantially lessen competition and restrain trade.”
The legal battle came to an end on Monday when the Walt Disney Co. agreed to merge Fubo with its Hulu Live TV service. As part of the settlement, Fubo received $220 million from Disney, Warner Bros. Discovery.
What’s Next?
Disney announced that Fubo will now offer a new package including ABC and ESPN channels, which seems to be a replacement for what Venu would have offered. Additionally, ESPN will be launching a direct-to-consumer offering later this year, giving viewers access to its channels without requiring a pay TV subscription.
Market Reception and Changes
Wall Street analysts had mixed feelings about Venu, noting that hardcore sports fans were more likely to opt for a traditional TV subscription that offered a wider range of channels and events. Furthermore, with Warner Bros. Discovery losing its package of NBA games to Amazon’s Prime Video and Comcast, Venu started to seem like less of a bargain.
