Disney, Fox, and Warner Bros. Discovery are launching a new sports streaming service called Venu Sports this fall. Priced at $42.99 per month, Venu Sports aims to offer a comprehensive sports viewing experience, potentially shaking up the market and impacting the stock prices of Disney and Fubo. This service will feature games from major leagues like the NFL, NBA, MLB, NHL, WNBA, NASCAR, and college sports, as well as golf, tennis, and soccer.
Subscribers to Venu Sports will also have access to studio shows, pre- and post-game programming, and an extensive library of sports documentaries from ESPN and Fox Sports Films. The platform will include content from 14 linear networks, such as ESPN, ESPN2, ABC, FOX, and TNT. This wide array of content aims to provide a one-stop shop for sports fans.
Venu Sports will offer bundling options with Disney+, Hulu, and Max, which could make the service even more appealing. Venu Sports CEO Pete Distad highlighted the competitive pricing designed to attract cord-cutters and those who have never subscribed to traditional pay TV packages. This launch comes amid increasing competition as Amazon and Netflix also secure sports content for their platforms.
The introduction of Venu Sports could have significant effects on the stock prices of both Disney and Fubo. Disney, a major stakeholder in Venu Sports, might see a positive impact on its stock price if the new service gains a substantial subscriber base. The anticipated revenue boost and potential growth for Disney+, Hulu, and Max through bundling options could enhance Disney’s overall market valuation.
Meanwhile, Fubo could face challenges if Venu Sports attracts a large portion of its current users. Fubo’s stock might drop if the market perceives that it is losing market share to the new entrant. This is particularly likely given Venu Sports’ competitive pricing and extensive sports content. Fubo offers plans ranging from $79.99 to $100 per month, with higher-priced plans including 4K resolution streaming.
In addition to the launch of Venu Sports, Disney has announced another significant price hike for its existing streaming services. Starting October 17, Disney+, Hulu, and ESPN+ will see subscription fees increase by as much as 25 percent. This marks the second price hike in about a year, aimed at covering the costs of producing new content.
Disney+ with ads will rise from $8 to $10 per month, and the ad-free version will increase from $14 to $16 per month, or $160 annually. Hulu’s ad-supported plan will go from $8 to $10 per month, while the ad-free plan will jump from $18 to $19 per month. Additionally, Hulu and Live TV with ads will cost $83 per month, up from $77, and the ad-free version will rise from $90 to $96 per month. ESPN+ will also see a rise, from $11 to $12 monthly, and from $110 to $120 annually.
Disney did not announce any changes for its bundle that includes Disney+, Hulu, and Warner Bros. Discovery’s Max. This suggests Disney wants to encourage customers to opt for bundles, which offer a lower price for multiple services. However, these bundles don’t address common complaints about frequent price hikes, confusing packages, or the quality of content. Where will the price hikes end?
