Walt Disney, Fox and Warner Bros. Discovery has canceled plans to create a joint sports streaming service, just days after settling a lawsuit filed against the three companies, claiming the platform would stifle competition.
“After careful consideration, we have collectively agreed to discontinue the joint venture Venu Sports and not launch the streaming service,” the companies said in a statement on Friday. “In an ever-changing market, we determined 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 accomplished at Venu so far and grateful to the Venu team, who we will support during this transition period.”
Earlier this week, Disney agreed to merge its Hulu + Live TV streaming service with online sports-focused company FuboTV, thereby resolving all litigation related to Venu Sports.
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The idea for Venu Sports was conceived last year when the three media companies decided to bring together their most valuable sports content into a streaming package, to reach fans who wanted access to live sports content without the need for a streaming package. Cable TV. The plan was immediately challenged by Fubo, which sued the group on the grounds that it would kill Fubo by not allowing it to air some sports-focused channels and raise prices for consumers. The Justice Department also planned to examine the project.
In August, federal judge Margaret Garnett ruled that the lawsuit was likely to stand and issued a temporary injunction blocking the launch of Venu. A hearing was scheduled for January 6, the same day Disney and Fubo announced their settlement and agreement to resolve the lawsuit.
Other competitors also spoke out against the launch of Venu Sports, which was scheduled for later this year. Earlier this week, EchoStar and pay-TV provider DirecTV wrote to Garnett, stating that Disney’s deal with Fubo does not address the anti-competitive aspects of Venu Sports.
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Live sports is one of the most profitable areas of TV. As more consumers cancel their cable TV subscriptions, major players are rethinking how they package and price sports content.
The decision to abandon Venu Sports suggests that Disney will focus on the upcoming launch of its flagship streaming product, ESPN, wrote Geetha Ranganathan, an analyst at Bloomberg Intelligencein a note. “We suspect Disney will try to license some sports content from Fox to strengthen its offering. Disney owns a third of major U.S. sports rights, suggesting the ESPN product could attract 10 million subscribers by 2026 with Venu being canceled.”
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