Disney has scrapped its plans for a bundled sports streaming service.

Venu Sports

On Friday, Disney, Fox, and Warner Bros. Discovery announced that they are scrapping their plans for a bundled sports streamer, citing a need to “meet the evolving demands of sports fans by focusing on existing products and distribution channels.” The now-canceled service was initially planned to show all their game telecasts and studio programs.

On February 6th, 2024, Disney announced that ESPN would merge with Fox and Warner Bros. Discovery to make a joint streaming platform for sports assets. Initially, the service was set to launch in the fall of 2024, however, it hit a major snag when a federal judge blocked the plans weeks before the planned debut due to antitrust concerns raised by FuboTV.

©Disney

In the complaint, Fubo, a smaller streaming service that relies heavily on sports content, claimed Venu would “substantially lessen competition and restrain trade.” This appeared to have been resolved earlier this week when Fubo dropped its Venu suit after Disney agreed to buy a 70% stake in the company.

However, while this resolved the related legal concerns, it also changed the business environment for Disney — Disney will soon have a portfolio of sports products available, and the company likely didn’t see the need for Venu anymore.

©Fubo

Disney’s ESPN is expected to launch a stand-alone streamer, internally known as “Flagship,” later this year. In addition, some ESPN programming is available on Disney+, and the company also offers an ESPN+ broadband product. According to a source, “Flagship” is currently the top priority among Disney’s sports streaming initiatives.

©Disney

Had Venu continued to move forward, it may have faced additional legal hurdles, as satellite operators DISH and DirecTV had also sent a letter of complaint to the court that had jurisdiction of the Fubo case prior to Disney’s announcement that it was scrapping plans for Venu.

We’ll continue to be on the lookout for more Disney entertainment news, so stay tuned to DFB for the latest updates.

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