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As we approach September, Venu Sports is gearing up for its launch. This new service is a joint venture between Fox, Disney, and WBD and its making a case for itself as a deep sports streaming service. Venu is positioning itself as a gap-filler, a “just good enough” service for those who feel daunted by the $70 per month price tag of YouTube TV.

But this is going to be DOA. We’re sure of it. Especially after WBD didn’t come to a deal for NBA media rights.

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Venu Sports: Launching in September

The Broader Strategy

This move is seen as a twofold strategy with a common goal for all three companies involved: bolster streaming options and pry people away from YouTube TV. There’s a calculated assumption that many people stick with YouTube TV primarily for sports. Priced at $42.99, Venu is probably betting that its price point will make viewers reconsider that $70/month commitment and switch to more specialized services like Venu.

First off, the Case FOR Venu

For sports fans already subscribing to Peacock and Prime, or even Paramount Plus, Venu could be an appealing addition. With the recent acquisition of NBA games, Venu offers enough content to be a worthy alternative to YouTube TV. It’s for those who find $70 a month too steep but still want solid sports coverage.*

*However, YouTube TV subscribers should take note: they’ll still get all of Venu’s sports coverage through linear channels, plus CBS content.

WBD’s Strategic Position

Warner Bros. Discovery (WBD) is sitting pretty in this deal. Even after losing the NBA, WBD (probably) owns a third of Venu Sports. While TNT will keep broadcasting NBA games through the 2025-2026 season, the real question is whether this streaming service will hold up once Fox and ESPN begin providing the bulk of the content. This situation makes WBD’s Extra puzzling when they failed to pony-up for NBA media rights during their exclusive negotiations.

The Reality Check

But, is this switch really going to happen? With a YouTube TV subscription, you’ll still be able to watch all the games, including the NBA, an area where Venu won’t have much, comparatively speaking. Sports deals are made every decade, not year by year. Venu might just end up fragmenting the market even more, and profitability could be a long shot.

This reality might even drive more subs toward YouTube TV as people start doing the math: Peacock, Paramount Plus, and now Venu—all together, you’re looking at $65/month, when you could just do YouTube TV for an extra 5 bucks a month.

With the NBA out of reach, Venu’s starting position is far from ideal. Missing out on NBC games puts them on the back foot right from the start.

None of this is investment advice.

Have a great week!

Ahmed and Peter