Venu’s Departure: Fox, Disney, and WBD’s Strategy for Independent Sports Streaming

Fox Corp., Disney, and Warner Bros. Discovery recently made the decision to call off their joint venture, Venu, a sports streaming service that was set to launch but faced challenges like cost concerns and legal issues. Now, each company is gearing up to go it alone in the live sports streaming arena.

Originally, Venu was supposed to offer a direct-to-consumer streaming service featuring live sports from all three media giants before the 2024 NFL season. However, after running into obstacles and being unable to debut, the companies opted to pursue their streaming strategies separately.

Disney’s ESPN and WBD’s Max are refocusing their efforts on their existing streaming platforms. Disney plans to introduce a new flagship app for ESPN users, separate from ESPN+, set for launch in the fall. Additionally, WBD announced that it will include sports and news in the standard and premium tiers of Max without additional charges. This move was a change from their initial plan to charge extra for sports and appears to be part of a broader strategy discussions.

Fox, on the other hand, is diving headfirst into the direct-to-consumer streaming space with plans to launch its own streaming service by the end of the year, offering a mix of news and sports content. The company even tapped Pete Distad, who played a role in Venu, to lead this new initiative.

Despite the increasing competition for streaming subscribers and the decline of traditional TV viewership, Fox is adamant that its move into streaming is not an attempt to replicate the strategies of bigger players like Netflix or Disney. According to Fox’s CFO Steve Tomsic, the company’s newfound interest in streaming was prompted by the growing number of households moving away from traditional cable packages. Fox aims to provide a streaming service that caters to news and sports fans without encroaching on the territory of other general entertainment platforms.

As the importance of live sports in attracting viewers has surged, media companies have found themselves grappling with the rising costs associated with sports rights. ESPN recently ended its long-standing deal with MLB due to escalating costs, while WBD lost the rights to air NBA games starting in 2025-2026 but secured new rights to college football games and the French Open. WBD’s CEO emphasized that the company is cautious about overspending on sports rights, signaling a more strategic approach in the future.

In conclusion, Fox, Disney, and Warner Bros. Discovery are forging ahead with their respective plans in the ever-evolving landscape of live sports streaming, each with a unique strategy to capture and retain viewers in this highly competitive market.