Bob Iger has finally addressed why Disney abandoned its plans for the Venu Sports streaming service earlier this year.
The Unexpected Cancelation of Venu Sports
Venu was initially scheduled for a summer 2024 launch, available as a standalone service or bundled with Disney+, Tubi, Hulu, Max, or ESPN+. Former Apple executive Pete Distad was set to lead the service, which was priced at $42.99 per month.
However, Venu’s launch faced significant legal hurdles. On August 16, 2024, a federal judge issued an injunction halting the rollout following an antitrust lawsuit from FuboTV. The sports-centric streaming provider had failed to secure a deal to carry the same selection of channels that Disney, Warner Bros., and Fox planned to offer exclusively on Venu.
A resolution came months later when FuboTV merged with Hulu’s Live TV service. As part of the settlement, FuboTV accepted a $220 million payout, while Disney gained a 70% stake in the newly merged entity.
With legal barriers seemingly resolved, expectations for Venu’s launch reignited—until Disney, Warner Bros. Discovery, and Fox abruptly announced the project’s cancellation.
“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the studios said in a joint statement (via The Hollywood Reporter). “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.”
Bob Iger on Why Disney Walked Away
Disney CEO Bob Iger has now shed more light on the situation, explaining that the rise of “skinny bundles” presented a better alternative than launching an entirely new streaming platform.
The goal is “to make ESPN as accessible as possible and in as many ways as possible to the consumer,” Iger said during an investor call. “Some will want to consume it just through an app. Some will want to consume it as part of the more traditional, expanded, basic bundle. Some will migrate in the direction of skinnier bundles or sports bundles only.”
He continued: “What essentially happened is, after the decision was made and we started to implement the launch of Venu, the emergence of these skinnier bundles surfaced. Venu basically looked redundant to us. This was a great opportunity for us to make ESPN available on multiple skinny bundles and then to actually merge the Hulu live and the Fubo channel businesses into one.”
During the same investor call, Disney provided updates on Disney+’s performance. Despite losing 700,000 subscribers in 2024, the service still turned a profit and maintains a robust 124.6 million subscriber base.
By prioritizing bundling and refining its existing services, Disney’s decision to abandon Venu aligns with its broader digital strategy. Whether this move will pay off remains to be seen.
Should Disney have gone ahead with Venu?
