• Loading stock data...
Thursday, April 24, 2025

Disney, Fox, WBD Invested $400 Million Each in Sports Bundle Venu

  • The numbers came out on the second day of a New York court hearing on Fubo’s attempt to block the app’s launch.
  • The three media giants also agreed to a noncompete clause for Venu’s first 36 months.
FOS Illustration

The Walt Disney Co., Warner Bros. Discovery, and Fox Sports have so far invested $400 million each in their highly anticipated sports streaming joint venture Venu, according to Fox Corp. COO John Nallen’s testimony Wednesday at a preliminary injunction hearing in FuboTV’s lawsuit against the three companies.

Nallen also disclosed that Disney, Fox, and WBD will each spend $15 million marketing Venu in its first year, separate from what Venu itself will spend.

The trio also agreed to a noncompete clause in the 36 months after Venu launches that prohibits each from entering into a similar partnership with other media companies. 

These disclosures came on the second day of a hearing on Fubo’s effort to block Venu’s launch, which is expected to happen in the coming months, if not sooner. 

“We did not want any type of noncompete,” ESPN chairman Jimmy Pitaro testified, but that’s what the three partners ultimately agreed on. “This is a compromise,” he added. When asked the reasoning behind the agreement, Pitaro said that WBD and Fox were concerned Disney’s ESPN could form a similar venture with NBC and CBS, two big rights holes in the Venu offering. 

Disney and Fox had talks last summer about their own dual bundle, not including WBD, that would have cost $22 and a potential audience of more than 30 million, with 87% of the subscribers coming from pay TV, according to Disney research presented at the hearing. Nallen also revealed Fox studied doing one with only WBD that would have had a projected 15 to 20 million subs.

Fubo views Venu as an existential threat that could strip nearly 30% of its 1.4 million subscribers, Fubo founder David Gandler testified. Its lawsuit alleges Venu violates antitrust laws because the three media companies are licensing sports-only channels to the new app—something they will not replicate with other platforms like Fubo, which must buy non-sports channels to get access to sports.

Pitaro initially testified that Venu does not wish to cannibalize pay-TV distributors like Fubo because ESPN earns more from subscribers (via cable and virtual distributors) than it will from Venu. But when a lawyer for Fubo pointed to internal ESPN research from January (handed over in the discovery process) that projected two-thirds of Venu’s projected five million subs by 2029 will come from pay TV, Pitaro conceded the finding. 

He reiterated that Venu hopes not to cannibalize pay-TV distributors.

The injunction hearing, originally scheduled to end Friday, will now run into Monday. Judge Garnett indicated she would not rule from the bench but will take post-proceeding motions before her decision.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NC State women's cross country

Judge Threatens to Reject $2.8 Billion House v. NCAA Settlement

The NCAA and power conferences could end up at trial.
Olympic rings

SafeSport Fires CEO Amid Scandal

Ju’Riese Colón was hired in 2019, two years after the agency’s founding.
Cristina Daglas
exclusive

ESPN Executive Editor Cristina Daglas Out After HR Investigation

Daglas was placed on administrative leave in January.
Jul 20, 2022; Minneapolis, MN, USA; Everton defender Nathan Patterson (3) challenged by Minnesota United forward Luis Amarilla (9) in the first half at Allianz Field.

Everton Accelerates Rebound With Addition of Texans Minority Owner

Friedkin acquired Everton in December after a prolonged sale process.

Featured Today

Apr 5, 2025; San Antonio, TX, USA; Duke Blue Devils forward Cooper Flagg (2) reacts after a three point basket against the Houston Cougars during the first half in the semifinals of the men's Final Four of the 2025 NCAA Tournament at the Alamodome.

Cooper Flagg’s Timing Is Perfect for the NBA and USA Basketball

The projected No. 1 pick just declared for the draft.
Apr 14, 2025; New York, New York, USA; Paige Bueckers is interviewed by ESPN after being selected with the number one overall pick to the Dallas Wings in the 2025 WNBA Draft at The Shed at Hudson Yards
April 21, 2025

ESPN’s WNBA Coverage Mirrors the League’s Stunning Growth

“I don’t think we stand still in our coverage of women’s sports,” says Rowe.
Mar 16, 2025; Milwaukee, Wisconsin, USA; Oklahoma City Thunder guard Shai Gilgeous-Alexander (2) celebrates with guard Isaiah Joe (11) after score in the fourth quarter against the Milwaukee Bucks at Fiserv Forum.
April 20, 2025

Unorthodox OKC: The Thunder Redefined Tanking to Become NBA’s Best

A rebuild years in the making has OKC in the driver’s seat.
Mar 13, 2020; Augusta, GA, USA; The front entrance at Augusta National Golf Club in Augusta, Ga., Friday morning. The Masters Tournament has been postponed due to coronavirus concerns.
opinion
April 20, 2025

What’s It Like to Play Augusta? A Day on the World’s Most..

Inside a round at the most exclusive club in the world.
FuboTV signage

Disney’s Fubo Takeover Now Faces DOJ Antitrust Review

The deal struck by the ESPN parent company could be in jeopardy.
Apr 20, 2025; Boston, Massachusetts, USA; Boston Celtics forward Jayson Tatum (0) during the first half against the Orlando Magic at TD Garden.
April 22, 2025

NBA Playoffs Deliver Most-Watched Opening Weekend in 25 Years

It was the most-watched opening weekend on ESPN platforms.
Multiple streaming services appear on a Roku TV.
April 23, 2025

Roku’s New Plan to Relieve Streaming Headaches

The streaming company introduces new tools to direct fans to games.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

This week, Two-time Super Bowl Champion and CBS NFL analyst Logan Ryan joins us to talk the business of sports on our third installment of Portfolio Players.
Shannon Sharpe
April 21, 2025

Shannon Sharpe Accused of Rape in Civil Lawsuit

The case was filed by an anonymous woman in Nevada.
Netflix
April 17, 2025

Netflix Rises While Markets Slide—Thanks in Part to Live Sports

The streaming giant beats financial expectations as its sports presence grows.
Lee Corso
April 17, 2025

Lee Corso Will Retire From ESPN at 90

The broadcaster is hanging up his headgear in August.
April 15, 2025

WNBA Draft Draws 1.25M Viewers, Second-Best Behind 2.45M Last Year

Paige Bueckers was the No. 1 pick in the WNBA draft.