Warner Bros. Discovery has had a few bad weeks recently, but they’re hoping for some good news when the Venu Sports streaming service launches this fall.
The joint venture along with Disney/ESPN and Fox Sports will include their 14 sports-related channels and on-demand libraries. With a stated focus on “cord nevers” and subscribers looking for sports-centric alternatives to cable bundles, YouTubeTV, and Fubo, the hope is that customers will see this as a way to get a large percentage of their sports-watching.
In fact, Fubo is in the midst of an antitrust lawsuit against the three companies over Venu, an effort that appears to have the tacit support of some powerful people in Congress.
As part of those legal proceedings, coupled with the pending arrival of Venu Sports, we’re learning a lot about how much these companies are sinking into the venture and their expectations for its success. Let’s dig into the details of what we know so far.
How much will Venu Sports cost?
$42.99 per month, which is below previous expectations. Per their announcement, Venu’s launch price will be guaranteed for 12 months and the service will also offer a seven-day free trial.
However, that price is expected to rise by $5 annually.
When will Venu Sports launch?
According to Daniel Kaplan writing for Front Office Sports, the timeline has been moved up and they now plan to launch Venu by the end of this month (August 23, specifically). That’s earlier than previously anticipated and means they’ll have the app available before the beginning of the 2024 NFL season.
What channels will be included?
Subscribers get access to ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, truTV, as well as ESPN+. They’ll also get on-demand programs from the other sports networks’ archives.
What sports-related content won’t be included?
Since NBC and CBS Sports aren’t involved, you won’t be able to find any of their sports programming. That encompasses a wide variety of games and events, including NBC’s upcoming NBA games, Notre Dame football games, CBS’s NFL slate, NBC’s Sunday Night Football, and CBS’s Big Ten games, just to name a few.
Any sporting events on other streaming services, such as Amazon (“Thursday Night Football”), Netflix (“NFL Christmas Day games”), Peacock (“Notre Dame/Big Ten games”), and Apple TV+ (MLS and MLB games), won’t be included as well.
How much have the three companies invested in Venu?
Disney, WBD, and Fox Sports have invested $400 million each into the venture, per Fox Corp. COO John Nallen’s testimony. On top of that, he said that each company will spend $15 million on marketing the service in its first year, which is separate from what Venu itself will invest in marketing.
How many subscribers are they expecting?
Back in March, Fox CEO Lachlan Murdoch predicted the service could get 5 million subscribers within five years.
As part of Fubo’s antitrust lawsuit, WBD’s chief revenue officer Bruce Campbell confirmed the details of an August 2023 report that projected eight million subscribers for $40/month and 7.1 million subscribers at a $45/month price point. Interestingly, they ended up deciding on a starting price in the middle.
Can one of the partners leave to form a different service with other companies?
No. The three companies agreed to a noncompete clause for 36 months after Venu launches. So, for example, if Paramount/CBS and NBCUniversal decided they wanted to form a Venu Sports competitor, ESPN wouldn’t be allowed to jump ship and join them.
This arrangement reportedly “infuriates“ the likes of Comcast, Charter, and DirecTV who can’t launch something like this, and could see many of their subscribers look away from cable for Venu.
Is Venu Sports here to stay?
IndieWire obtained a Disney court filing from July 25, 2024, which includes the line “Venu is finite, with a nine-year term.” The specific reason for including that kind of language isn’t clear, but there appear to be two possibilities the trio might want to say that.
One, it’s a way to counteract Fubo’s antitrust claims by claiming it’s temporary. Two, the 2033 end date aligns with the expiration of the current NFL media-rights deal, and it might be in everyone’s best interest for Venu not to be part of those negotiations since the price will be astronomical enough already.
Could Fubo block Venu Sports from existing?
It’s up to U.S. District Judge Margaret Garnett what happens with Fubo and their claims against Venu. If Fubo gets its way, a preliminary injunction would prevent Venu’s owners from “enforcing contractual restraints” that essentially block a rival service from existing.
However, it’s incredibly unlikely Venu Sports’ launch will be impacted by her decision. If she issues a ruling “from the bench,” it would be to grant or deny Fubo’s motion in some form. That could take many forms. The other possibility is that she could tell both sides that she’ll take their arguments under advisement and then issue a written order on Fubo’s motion. If she were to grant a preliminary injunction, it would be in place until a court decides the merits of the case, likely via trial, which probably wouldn’t happen until at least 2025.
