FuboTV, a streaming television service which emphasizes a sports-first offering has come up into new topics of conversation for changes in the industry as a whole. Recent news has shown Fubo's changing role in the sports streaming arena.
The Discontinued Launch of Venu Sports
Venu Sports was going to be a joint project between ESPN, Fox, and Warner Bros. Discovery that was shut down due to a lawsuit that had occurred by Fubo TV. It has now been resolved when Disney made a decision to create a deal with Fubo TV, however they did choose to discontinue the project.
Venu's Downfall
Despite high optimism that was first set there was conflict when Fubo filed a lawsuit to try to stop the sports bundle. Then when Disney created a deal to buy Fubo, the original vision did not stay and lead to a stop in the development. Now many are looking into the changing view of streaming services.
The Disney and FuboTV Partnership
Disney now takes a majority of a 70 percent stake in Fubo by creating a merging of Hulu + Live TV into Fubo with the agreement. As a result Fubo’s management team is still in control of the future vision for the brand with a unique change of being held within a larger media format.
Creating an Alternate Sports Service
Fubo and Disney agreed to a distribution deal where a new "skinny" sports based bundle will be offered to all consumers. This will include channels such as ESPN and ABC for Fubo viewers in what appears to be a smaller collection of options.
FuboTV's Position in the Streaming Market
FuboTV has faced challenges but also unique situations which have forced it into a more solid position within the viewing market. Now Fubo has the chance to use its influence for a more competitive role in the growing business with other streaming platforms.
A Streaming Competitor
The combined Hulu + Live and Fubo is a major contender in competition to YouTube TV. It showcases how big streaming companies are taking on new creative directions and forming collaborations that otherwise would not have previously existed.
ESPN's Streaming Priorities
ESPN is set to launch their own streaming service this year , known internally as “Flagship”. In addition, they have begun to also distribute programming on Disney+.
Shifting Away From Bundles
Disney's actions appear to show that a desire to explore and try all options to get content to its consumers whether it be through cable packages to their own subscription service, even licensing other services like DirecTV. This seems to highlight a focus to see what may come in an effort to make sports more available.
Other Factors Influencing Decisions
Satellite providers like DirecTV and Dish raised issues regarding the structure of the distribution methods and the challenges to them being a competitor in the market. They questioned the legality of bundling practices. Those questions brought an area of scrutiny to the business as a whole and prompted large companies like Disney to alter their focus as well. This showed there were challenges from many different angles which eventually came to a final stop on a major deal that was set into place.
Venu and Satellite Providers
Other factors, such as complaints about antitrust from other cable and satellite providers further contributed to why the companies decided to cancel Venu after all the legal proceedings were concluded, even if that means more competition. By understanding all viewpoints the big three were ready to call the project quits before new problems would start.
Implications and the Changing Streaming Market
The change in Venu, and Fubo reflects the instability of streaming television business along with what the best models for distribution could become for sports in particular. These challenges allow room for all to see new dynamics in large business transactions with more changes coming to provide choice for consumers.
User Choice in Pricing and Access
In the coming years with all new changes it might allow for options at all different levels. Whether through different providers or skinny bundle packages consumers may soon be able to have access and choice over programming with all the changes happening. These options range from $10 bundle options with cable companies up to premium service with higher costs for standalone platforms.
Key Takeaways
- Venu Sports, a joint venture by Disney, Fox, and Warner Bros. Discovery has been discontinued.
- FuboTV will acquire Hulu + Live TV while also becoming a streaming force against competitors like YouTube TV.
- Disney takes a 70 percent share in the company which maintains its focus on streaming options moving forward.
- ESPN plans to launch its "Flagship" standalone streaming service later in the year and Disney will seek new and different routes to distribution for content.
- The current landscape for sports streaming shows a desire to offer many unique routes with multiple packages coming to consumers in future planning.