The anticipated sports streaming service from ESPN, Fox, and Warner Bros. Discovery has been shuttered ahead of its launch.
What’s Happening:
- Venu Sports, the proposed MVPD service from ESPN, FOX and Warner Bros. Discovery (WBD), will be discontinued.
- The collective decision by the three companies not to move forward with the contemplated joint venture is effective immediately.
- Disney, Fox and WBD announced their plan to launch a joint streaming service nearly a year ago. The service would be structured like other vMVPDs (like YouTube TV or Fubo), but with a dramatically smaller lineup of channels. Fox, for example, would provide the Fox broadcast networks and FS1, but not Fox News, while Disney would provide ABC and the ESPN networks but not FX or Disney Channel.
- The announcement to not proceed with the venture comes amid a fresh lawsuit threat and after a surprise announcement from Disney earlier this week.
- On Monday, Disney announced a deal to merge its Hulu + Live TV service with Fubo. The combined venture would be the second-biggest streaming MVPD after YouTube TV, and would be run by Fubo’s executive team, even with Disney maintaining majority ownership.
- Yesterday, the two major satellite TV firms DirecTV and Echostar went to the U.S. District Judge to reconsider the dismissal of a lawsuit by Fubo against Venu that was dropped as part of the Disney/Fubo deal.
- According to The Hollywood Reporter, a source reported that it was the legal issues with the satellite companies that played a role in the decision (that was made a few days ago), to shutter Venu ahead of its launch.
- ESPN is still set to launch its ESPN Flagship service later this year, and could potentially cut deals with Fox and other companies to bring their sports to its platform.
What They’re Saying:
- ESPN, Fox, and Warner Bros. Discovery: “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.”
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