Just as Disney announced some tremendous new streaming numbers, their plans for a new sports service are kaput! Find out more!
Usually, Disney and Warner Bros. are major rivals, especially in the current streaming wars. Disney has Disney+, while Warner Bros. owns HBO and Max, which are always competing for viewers.
However, in a landscape that's constantly changing and the need for more subscribers, strange bedfellows can form. That means Disney and Warner Bros have forged a partnership that includes a Disney+/Max bundle.
This was going to lead to a much bigger deal in Venu. The idea was for Disney, Fox and Warner Bros to launch a special stand-alone streamer dedicated completely to sports. This wouldn't be like ESPN+ with just live events; it would integrate programming from various cable channels, from ESPN to TBS, alongside documentaries and specials.
Venu was seemingly going full steam ahead with a hefty price tag of $42.99 per month, announced in August of 2024. However, it hit a roadblock as just before its planned launch in August (which would have been right before the NFL season), a federal judge blocked it with an injunction filed on behalf of smaller streamer Fubo, which argued this would harm their own business.
It looked like Disney solved this problem in the easiest way: They just bought Fubo with a 70% stake in that streamer. It was thus seemingly obvious Venu would go ahead.
Instead, a joint statement via Variety proves Venu is dead and all three companies are moving on.
"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, 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."
So what happened?
Why did Venu die and what's next?
The obvious reason for Venu going under is that now that they own Fubo, Disney doesn't have much need for it. They've still got ESPN+ and Hulu to provide enough sports.
There may be other reasons, as Alex Sherman of CNBC reports that a factor was DirectTV and Dish threatening to take up the Fubo lawsuit. That would mean more litigation, which would have delayed the launch of Venu.
Obviously those services (which rely on live sports for much of their viewing) don't want to lose customers to some new streamer and do whatever it takes to block it. That would have kept Venu from launching and adding to the costs.
So, with Fubo under their control and the threats of lawsuits continuing, Disney, Fox, and Warner Bros. decided it was best to just drop Venu before it got going. It's hard for those who were working to get the streamer off the ground but a victim of the business.
This won't be the end of Disney's plans for a new sports streamer as they are working on what's internally called Flagship. This would not only show sports coverage but integrate fantasy play and even wagering. There's no word on when that will come.
It's a complex story that's still unfolding in the fallout. It shows just how high-stakes the streaming wars have become as even Disney and Warner Bros. can't just create a new streamer out of thin air.
Do you think another cancellation could happen again? Where do you get your sports?