Disney, Fox and Warner Bros. Discovery have announced they will not procede with their proposed streaming joint venture.
On Monday, independent platform FuboTV agreed to withdraw a legal objection after accepting a $220 million settlement that would see it merge with Disney’s Hulu with Live to create a new company in which Disney will hold 70%. FuboTV was also earmarked to run the new streaming service.
The project had been on hold after a US judge temporarily suspended the venture last Augist, following FuboTV’s intervention.
In a joint statement issued Friday, Disney’s ESPN Fox and Warner Bros. Discovery said: “After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service. 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.”
While the prospect of a legal action from a third party was considered to be a possibility – both DirecTV and Echostar have this week made public their concerns – changes in market conditions and the emergence of the so-called skinny bundle was also said to be a factor.
