A planned joint venture between ESPN, Fox and Warner Bros. Discovery was scrapped on Friday nearly a year after the platforms announced plans for a sports streaming service aimed at cord-cutters.
Venu was set to launch in late 2024, and would have given the opportunity for fans to watch games from over a dozen channels without a full cable subscription. The platform, however, never launched.
The networks intended to bring together coverage of the NFL, NBA, MLB, NHL, college football, the FIFA World Cup, and golf, tennis and cycling events. The events would have been drawn from ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, as well as ESPN+, the companies wrote in a press release.
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ESPN, FOX and Warner Bros. Discovery were expected to each own one-third of the new operation, to which they would have licensed their content on a "non-exclusive basis."
The networks released a joint statement on Friday announcing the decision.
"After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service," the networks said. "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 proposed channels faced scrutiny from cable and satellite operators. DirecTV filed a complaint with the Federal Communications Commission in September 2024 alleging that Disney was violating federal laws by forcing DirecTV to carry other Disney-owned programs or pay a higher rate to carry ESPN. Sens. Bernie Sanders and Elizabeth Warren also complained to the Department of Justice and FCC over the joint venture.
"The risks of corporate consolidation that Venu promises will likely be borne by American sports viewers. This proposed JV removes all economic incentive for these entities to continue competing for sports licensing rights," the senators wrote.
A judge had blocked the launch of Venu amid concerns that it stifles competition from cable competitors.
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"The parties remain at impasse because Disney has refused to allow DirecTV to offer 'skinnier bundles' of programming—unless DIRECTV also meets related minimum penetration requirements designed to make the provision of such skinny bundles effectively impossible or prohibitively expensive," DirecTV said in its complaint. " At the same time, Disney itself— both directly as part of its announced ESPN Flagship service and through its proposed 'Venu' joint venture—plans to sell its most valuable programming more cheaply, in 'skinnier' bundles."
ESPN is still planning to launch a standalone app in the fall of 2025, allowing customers an opportunity to purchase the channel without needing cable.
