fbpx

Why Disney Scrapped This Sports Streaming Platform

Photo from Oscar Nord via Unsplash

Why Disney Scrapped This Sports Streaming Platform

By Movieguide® Contributor

Disney announced it is no longer launching Venu, an ambitious sports streaming platform it had planned to launch in partnership with Warner Bros. Discovery (WBD) and Fox.

“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the three companies said in a joint 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.”

The cancellation of the platform comes days after Disney acquired a 70% stake in Fubo, effectively taking control of the company.

READ MORE: DISNEY MERGES HULU+ LIVE TV WITH FUBO TO END VENU SPORTS DISPUTE

Deadline noted, “It’s an odd look just five days after the announcement of Disney’s Fubo transaction and Fubo’s settlement with Venu’s partners. Deadline hears that while the three partners all ultimately agreed to kill Venu, they were not all as energetic as Disney in pushing that outcome.”

Venu was originally planned to launch last fall, however, Fubo blocked its creation with an antitrust lawsuit that went to the FTC. Fubo argued the platform would be anticompetitive as Disney, WBD and Fox already control 54% of all live sports broadcasts in the U.S. Other distributors had supported Fubo’s lawsuit, with DISH and DirecTV sending letters to the court sharing their support for Fubo.

Rather than engaging in a drawn-out and expensive lawsuit with no guarantee of victory, even with Fubo out of the picture,  Disney has instead chosen to scrap the project and focus on pursuing sports streaming through other ventures.

Hulu has offered a live sports add-on for years, and Disney has been working to make ESPN a player in live-streamed sports as well. With the addition of Fubo to its lineup, it has made itself a major player in the sports streaming world and could become even more competitive if it consolidated its offerings.

As for WBD and Fox, both currently offer live sports streaming through their respective platforms, though they would have had much to gain through the creation of Venu.

READ MORE: FUBO-VENU SPORTS LEGAL BATTLE RAGES — HERE’S THE LATEST


Watch PETE’S DRAGON
Quality: - Content: +1
Watch THE SNOOPY SHOW: Season Three
Quality: - Content: +2