Disney, Fox, and Warner Bros. Discovery have decided to halt their plans to launch the Venu sports streaming service. This decision comes after a legal challenge from the streaming provider Fubo, which alleged that Venu would create an anticompetitive landscape in the streaming industry. Initially slated for a launch prior to the NFL season in September, Venu's debut faced delays due to ongoing litigation, which has now been resolved.
The settlement between Disney and Fubo, reached earlier this week, resulted in a strategic partnership where both companies agreed to combine their internet TV bundles. This collaboration merges Disney's Hulu+ Live TV with Fubo's offering, potentially altering the dynamics of the streaming market. Venu was first announced in February and was designed to integrate the live sports assets of Fox, Warner Bros. Discovery (WBD), and Disney-owned ESPN. However, the companies involved issued a joint statement declaring the discontinuation of the project.
"After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service." – Disney, Fox, and Warner Bros. Discovery
Despite the cancellation, the companies expressed pride in the efforts and progress made during Venu's development. They have assured support for the staff involved in Venu throughout this transition period.
The announcement of the settlement positively affected Fubo's financial standing, with its stock price rising approximately 5% in premarket trading on Friday. Earlier in the week, shares of Fubo surged by 250% following the announcement of the deal with Disney. This agreement represents a significant shift in strategy for both parties as they navigate an increasingly competitive streaming landscape.
The decision to cancel Venu marks an end to a highly anticipated project aimed at revolutionizing sports streaming by leveraging the combined resources and expertise of three major media giants. While this chapter concludes, it opens new possibilities through the Disney-Fubo partnership, signaling potential changes in how audiences consume live sports content.