Bob Iger has finally provided an update on why Disney abandoned its plans for the Venu Sports streaming service earlier this year.
Disney has been in the streaming business for several years now, having started out with a UK-based trial service called Disney Life in 2015, before launching its primary streaming service, Disney+, in 2019.
Since then, Disney has streamlined its streaming operations, consolidating apps like DisneyNow, ABC, Freeform, and FX while integrating Hulu into Disney+ in select regions under the Star banner.
Despite these efforts to refine its streaming presence, Disney made a surprising move in January by canceling its much-anticipated sports streaming venture. Venu Sports was a collaboration between Disney, Warner Bros., and Fox, aimed at offering a unified subscription for sports content.
The End of Venu Sports
Venu was initially scheduled to launch in summer 2024, either as a standalone service or bundled with Disney+, Tubi, Hulu, Max, or ESPN+. Led by former Apple executive Pete Distad, the platform was expected to launch at $42.99 per month.
However, legal complications derailed these plans. In August 2024, a federal judge issued an injunction preventing Venu’s launch after FuboTV filed an antitrust lawsuit. FuboTV, a sports-focused streaming provider, had failed to secure a deal to carry the same limited channels the three companies 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 received $220 million, while Disney took a 70% stake in the new entity. This resolution seemingly cleared the way for Venu’s launch, but the three companies quickly announced that the project was officially shelved.
“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 Explains Disney Streaming Decision
Disney CEO Bob Iger (who recently received a big salary increase) has now shed more light on the reasoning behind the decision. He pointed to the growing trend of “skinny bundles” as a more viable alternative to launching a dedicated sports streaming service.
As Iger explained, the priority is to “make ESPN as accessible as possible and in as many ways as possible to the consumer.” Speaking on an investor call, he elaborated, “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 into 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.”
The Future of Disney’s Streaming Landscape
In the same investor call, Disney revealed more details about Disney+’s performance. Despite losing 700,000 subscribers in 2024, the service still turned a profit and maintains a strong base of 124.6 million subscribers.
With Disney’s focus shifting to bundling and maximizing existing platforms, the decision to cancel Venu aligns with its broader streaming strategy. Whether this move benefits Disney in the long run remains to be seen.
Do you think Disney was right to cancel Venu?
