There could be marketplace reasons, as the announcement mentions. But yesterday DTV & EchoStar (Dish/Sling) jumped into the battle asking the Courts not to dismiss the lawsuit because the anti-trust issue remains. Basically, the JV antitrust issues don't go away just because Disney bought the plaintiff (FUBO).
The other part of the "marketplace" arugument could deal with Disney's acquisition of FUBO. It basically means there are now 2 dominant multi-channel streaming platforms: YTTV & Disney (which owns FUBO & Hulu). All 3 of those products currently cost basically the same, around $83/month. I wonder if FOX & WB started wondering who they got into bed with.
Also, the latest I read, it was speculated the Venu Sports package was going to cost in the neighborhood of $50/mo. vs. low-$40's when Venu was announced While the JV has been proceeding over the last year, Disney/ESPN has been moving forward with their own ESPN standalone direct to consumer product. The is expected to launch August 2025 and cost around $30/month. If Disney believes it can get $30/month for standalone ESPN, why do they need Venu Sports which is still facing legal scrutiny and just adds another platform for Disney to juggle operationally. Afterall they currently have:
- Hulu, Disney, ESPN+ standalones plus
- Hulu+ and now Fubo multichannel platforms plus
- ESPN direct to consumer (August 2025)
Seems like Disney can attack the market two ways:
- Multi Channel Platforms (Hulu/Fubo; combined or 2 price/content points)
- An a la carte platform where customers can buy: ESPN DTC, ACCN, SECN, ESPN+, Hulu, Disney+ and standalone services offered by other companies (e.g. Max, Paramount, etc.)