Disney, Fox and Warner Discovery are abandoning their joint sports-focused streaming project, just days after settling a lawsuit against the three companies that claimed Venu Sports would stifle competition.
Posted at 11:00 a.m.
“After careful consideration, we have collectively decided to terminate the Venu Sports joint venture,” the companies announced Friday. “In an ever-changing market, we believe it is best to meet the changing demands of enthusiasts by focusing on existing products and distribution channels. We are proud of the work accomplished at Venu Sports and grateful to its staff, whom we will support during this transition. »
Earlier this week, Disney agreed to merge Hulu + Live TV with online sports site FuboTV, settling all disputes related to Venu Sports.
The idea for Venu Sports was born last year, when the three media companies decided to jointly stream their high-value sports content, targeting non-cable fans. The plan was immediately challenged by Fubo, which sued the group on the grounds that Venu Sports would kill Fubo by preventing it from broadcasting a handful of sports channels, at the expense of the consumer by raising prices. American justice also plans to scrutinize the project.
In August, federal judge Margaret Garnett issued an interlocutory injunction prohibiting the launch of Venu until the outcome of the trial.
The hearing was set for January 6, the same day Disney and Fubo announced their agreement and settlement of the dispute.
Other competitors opposed the launch of Venu Sports, which was planned for next fall. Moreover, EchoStar and pay TV provider DirecTV wrote to Judge Garnett on Tuesday, arguing that the Disney-Fubo agreement does not resolve the anti-competitive aspects of Venu Sports.
Sport is one of the most profitable sectors of television. But more and more consumers are unsubscribing from cable and the big players in the sector are rethinking the way they present and price sports content.
The abandonment of Venu Sports suggests that Disney will pivot to focus on streaming its flagship ESPN product this fall, according to Bloomberg Intelligence analyst Geetha Ranganathan. “We believe Disney will try to license some sports content from Fox to expand its offering. Disney owns a third of the major U.S. sports rights, leading to speculation that the ESPN product could amass 10 million subscribers by 2026 if Venu is shelved. »
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