ESPN, Fox, and Warner Bros. Discovery Joint Venture Takes Shape with VENU, But with Anti-Trust Questions from the Government
Elizabeth Parks
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he brand-new sports streaming app from Warner Bros. Discovery, Fox Sports, and ESPN has a name. The new offering is expected sometime in the fall of 2024 and will be known as Venu Sports. The skinny sports bundle will provide 16 live channels and has the potential to be integrated with ESPN+, Max, Hulu, and other services. This service may be the ultimate dream for sports fans, as it allows them to view live sports without the need to pay for services such as the Disney Channel or The Magnolia Network.
A new website was introduced in May 2024, Venu.com, which announced the new service? is a consolidation of “the most sought-after live sports from the most prestigious leagues and teams in a single location.” ?The website states these features are “all contained within a new App that has been specifically designed for sports enthusiasts.”
Pete Distad, CEO of the forthcoming Venu Sports streaming service stated:
“We are excited to officially introduce Venu Sports, a brand that we feel captures the spirit of an all-new streaming home where sports fans outside of the traditional pay TV eco-system can experience an incredible collection of live sports, all in one place.”
?The Athletic has stated that it anticipates the monthly cost to be between $40 and $50. However, it is feasible that the cost may be higher than projected. Fox recently stated that the service will be priced in the "highest ranges" of the estimates. This implies that the service may cost more than media analysts have reported.
Why it Matters
In an era of declining linear TV viewing, premium sports content has been one of the few genres preventing viewers from cutting the cord. Parks Associates data shows that 40% of US traditional pay-TV subscribers still watch live sports via legacy pay TV. This is, in part, because sports rights have been skewed towards pay-TV arrangements with network broadcasters.
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The fragmentation of media rights online forces viewers to complete multiple steps to discover programming. While only 22% of consumers who watch streaming services report watching live sports, this number continues to climb as more sports rights move from legacy TV to streaming services, such as the exclusive AFC NFL game on Peacock this year and the NFL Wild Card Playoff game on Amazon Prime Video in 2025.
Sports broadcast rights on legacy TV are not going away anytime soon due to the joint venture between Warner Bros. Discovery, Fox, and ESPN; however, this new mega sports streaming app may offer consumers a simplified experience, a way to reduce cost for content they do not watch and provide consumers a streamlined discovery process.
Sports fans are streamers. Parks Associates anticipates those who watch live sports content on traditional pay TV will continue to decline as those who stream via OTT services such as the new Venu Sports property will continue to increase. The new venture also takes aim at vMVPD services such as Fubo and YouTube TV who have captured cord-cutters who seek to access their local sports broadcast and news. Sports streaming offerings have been highly fragmented outside of vMVPDs to this point, and Venu aims to put a more comprehensive solution in front of fans.
The fee for this Joint Venture has not yet been announced, and the companies in this new sports conglomerate continue to meet with Congress to answer anti trust questions specifically about access and competition in the market. Time will tell on if and when this service launches.
This is an excerpt from Parks Associates library of research. For more information visit www.parksassociates.com
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Tickets to the game... transportation... food and beverages... maybe you buy some souvenirs... miscellaneous expenses... all add up when you attend the big game or any game. Now... consider bringing the family. With comprehensive sports coverage available... the experience of watching from home is enjoyable... and is a more affordable choice... if you have to pay. In one way... pay TV for sporting events kind of works for watching alone... and/or social gatherings. By the way, I'm not watching ESPN or Network Television for free... I'm paying my FIOs bill. Now I may have to pay a little extra for certain events. No one is forcing me to. I personally love going to the game... and I remember days of blackouts... when I couldn't see the New York Football Giants play unless they sold out and/or unless I attended the game. They pretty much always sold out. What goes around comes around.