Later this year, Disney, along with Fox and Warner Brothers Discovery, are scheduled to launch a brand new streaming service called Venu Sports, which will bring together the collective companies’ portfolios of sports networks and ESPN+ – including content from all the major professional sports leagues and college sports.

The platform will aggregate content to offer fans an extensive, dynamic lineup of sports content to serve sports fans, particularly those outside of the traditional pay TV bundle.

Subscribers to Venu will have access to linear sports networks, including ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, as well as ESPN+, with programming packaged around three key pillars of content in the service:

• Extensive Live Games and Event Coverage of the NFL, MLB, NHL, NBA, WNBA, NCAA Division I football and basketball, U.S. and international soccer, combat sports, Grand Slam tennis, championship golf, INDYCAR, NASCAR and F1 auto racing, and more.
• Iconic Sports Studio Shows and Pre/Post Game Programming with ESPN’s SportsCenter, First Take, Get Up!, College GameDay and The Pat McAfee Show, FOX’s NFL Sunday, The Herd with Colin Cowherd, First Things First, and TNT’s Inside the NBA to name a few.
• Robust Library of On-Demand Sports Content with programming that celebrates sports culture and fandom, including ESPN’s 30 for 30 library, ESPN+ Originals, ESPN Films, documentary programming from Fox Sports Films, and more.

Recently, it was announced that Venu Sports will be priced at $42.99 a month and there will also be a bundle with Disney+, Hulu or Max.

However, the launch of Venu Sports is subject to regulatory approval and the finalization of definitive agreements among the parties.  Unfortunately for Disney, Fox and Warner Brothers Discovery, the launch of Venu Sports has already caused some concern for many parties, including Fubo TV, who are currently in court this week to try to get an injunction to delay the launch of Venu Sports.

There is also more problem for the new streaming service, as U.S. Senator Elizabeth Warren (D-Mass), Representative Joaquin Castro (D-Texas), and U.S. Senator Bernie Sanders (I-VT), have wrote to the United States Department of Justice (DOJ) and Federal Communications Commission (FCC), calling on the agencies to closely scrutinize the proposed joint venture between FOX, Warner Bros. Discovery, and Disney subsidiary ESPN that would create a new streaming service named Venu Sports.

The lawmakers said in a statement:

“This massive new sports streaming company would be poised to control more than 80% of nationally broadcast sports and more than half of all national sports content, putting it in a position to exercise monopoly power over televised sports.  The market power of its three giant parent companies would enable it to discriminate against competitors and increase prices for consumers.”

Their report states Venu would be poised to continue this trend by consolidating the sports programming of the second, fifth, and ninth highest revenue media companies in the world. Under the joint venture, other streaming platforms would have to negotiate with Fox, Disney, and Warner Bros. for access to major sports licensing rights while simultaneously competing with them to offer a competitive sports streaming service.  Fox, Disney, and Warner Bros. would have a financial incentive to preference Venu in negotiations with competitors, including by continuing to bundle sports channels with other less popular programming and effectively requiring competitors to buy the entire bundle, preventing them from offering cheaper deals to consumers. 

In fact, the lawmakers point out that Disney has already been accused of this behaviour with its streaming platform Hulu, stating:

“its significant licensing leverage to set a price floor and prevent competitors from offering cheaper, competitive bundles to consumers.  Using its extensive control of sports licensing rights, Fox, Disney, and Warner Bros. would be able to exert joint control over live sports from distribution through broadcast.  The risks of corporate consolidation that Venu promises will likely be borne by American sports viewers.”

Although Venu is framed as a joint venture rather than a merger, its consolidation of the live sports market could raise concerns under both antitrust and telecommunications laws aimed at preventing excessive consolidation and protecting public interest.

“The description of this deal as a ‘joint venture’ should not prevent antitrust and telecommunications regulators from giving it the scrutiny it deserves.  DOJ and FCC should closely scrutinize this transaction and take immediate action to block it if it violates antitrust law, or if it does not serve the ‘public interest, convenience, and necessity.’” 

Roger’s Take: Launching Venu Sports was always going to be difficult, as bringing together three major corporations would require undercutting and bypassing the classic cable system.  Sports is one of the main reasons why people are still subscribed to cable and cable-lite platforms like YouTube TV or Hulu + Live TV.   Disney is launching a new online version of ESPN next year, which will be available via Disney+, which they’ll be able to do without the same level of scrutiny, but I honestly, could see the project delayed or possibly even shelved after the US election.

Do you think “Venu Sports” will launch as planned this year?  Let me know on social media!

Roger Palmer

Roger has been a Disney fan since he was a kid and this interest has grown over the years. He has visited Disney Parks around the globe and has a vast collection of Disney movies and collectibles. He is the owner of What's On Disney Plus & DisKingdom. Email: Roger@WhatsOnDisneyPlus.com Twitter: Twitter.com/RogPalmerUK Facebook: Facebook.com/rogpalmeruk

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