This fall, Disney, Fox, and Warner Bros. Discovery are set to launch Venu, a new streaming service priced at $42.99 per month. This pricing makes Venu the most expensive major subscription streaming service, surpassing Netflix, Max, and Peacock. Although cheaper than YouTube TV or standard cable bundles, Venu focuses primarily on live sports, including access to networks like ESPN, ESPN2, FS1, TNT, and more. Subscribers will also get ESPN+ included.
Venu aims to attract “cord nevers” – younger consumers who have avoided cable due to cost but desire access to live sports. However, the service faces challenges. For one, it doesn’t include CBS and NBC, which hold rights to key sports content like college football and NFL games. Furthermore, the total addressable market for a $43 monthly sports-only service might be limited, as many non-cable subscribers prefer watching highlights and commentary on platforms like YouTube.
Another potential issue for Venu is competition. For $60 per month, Sling TV offers a more extensive package that includes ESPN, TNT, Fox, NBC, and other popular networks, totaling 46 channels compared to Venu’s 14. Sling TV even has a $40-per-month option for those who mainly want ESPN and other select channels. Despite these offerings, Sling TV has seen a subscriber decline, raising concerns about Venu’s potential market share.
Venu’s introductory pricing strategy allows subscribers to lock in the $43 rate for 12 months, hinting at future price increases. While the service plans to expand its sports offerings, which could drive up costs, the value proposition for cord-nevers remains challenging. Complicating matters, Disney plans to launch an ESPN Flagship streaming service in fall 2025, offering ESPN content at a lower price than Venu.
Despite these hurdles, Fox CEO Lachlan Murdoch predicts Venu could attract 5 million subscribers over the next five years. Achieving this goal will require substantial marketing efforts to convince consumers of Venu’s value amid a crowded and competitive streaming market. The success of Venu hinges on its ability to deliver a compelling sports-centric experience that justifies its premium price.
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