NBC Exec Blasts Venu Sports, While Fox CEO Argues It Is ‘Pro-Consumer’
Murdoch repeated arguments that Venu has always been intended to target cord-cutters and cord-nevers.
Venu Sports is officially stuck in the mud. The joint venture streaming service is still on hold thanks to a preliminary injunction handed down by a federal judge in mid-August, which was requested by Fubo as part of its larger antitrust lawsuit against Venu. Audiences heard from both NBCUniversal Media Group chairman Mark Lazarus and Fox CEO Lachlan Murdoch on the topic of Venu this week, and, unsurprisingly, the two executives had very different sentiments to offer about the streamer.
Key Details:
- Lazarus called Venu an “incomplete” service, pointing out it omits sports from NBC, Paramount and Amazon.
- Murdoch repeated the argument that Venu was never meant to pull customers away from current pay-TV plans.
- Comparing Venu to cable is a “misunderstanding” of the product, according to Murdoch.
Speaking at the Front Office Sports Tuned In summit, Lazarus had the opportunity to share his thoughts on Venu. While he was less than forthcoming when asked about how many subscribers Peacock gained thanks to the 2024 Summer Olympics, he did not hold back when the topic of Disney, Fox, and Warner Bros. Discovery’s joint venture was broached.
“Why don’t you offer that bundle to others?” Lazarus said. “Why can’t Comcast or Charter or Fubo [have the bundle]? As a consumer, it’s an incomplete service. It doesn’t have all sports. It’s three companies and leaves out us, and Paramount and Amazon, who have major sports portfolios or growing portfolios.”
One need look no further than Peacock to see the volume of sports NBCU boasts, including “Sunday Night Football,” Big Ten and Notre Dame football and basketball, English Premier League soccer, and a lot more. Lazarus didn’t stop there with his criticism, however, echoing the concern of other observers that the three companies involved in Venu may have agreed privately not to compete against each other for major sports rights, which would have a drastic effect on the market.
“The other part that we worry about: Is there an informal alliance on bidding on properties, and is that legal?” Lazarus posited.
Murdoch Rehashes Pro-Venu Points
Fox CEO Lachlan Murdoch also had the chance to discuss Venu this week, when he spoke to the Goldman Sachs Communacopia & Technology Conference on Tuesday. As can be expected, Murdoch took a decidedly opposite position from Lazarus on the streamer, calling it “pro-consumer” and echoing many of the same arguments executives of Venu’s backers have been making for months.
“It’s a tremendous service. It’s designed entirely for the cord-cutters and cord-nevers,” Murdoch insisted. “It’s at an affordable cost, and it really cleans up a lot of what’s become complicated or broken in the sports rights environment in the United States.”
However, the argument that Venu was never meant to pull customers away from their current pay-TV plans was foiled by Fubo’s lawyers in court hearings. ESPN chairman Jimmy Pitaro was confronted on the stand with evidence that ESPN’s own internal data forecast that up to two-thirds of Venu’s projected subscriber base would come from viewers who are currently customers of Fubo or other cable distributors.
Murdoch also said the streamer would not be as focused on the live channels it offers, but instead would be marketed as a home for popular sports, and that comparing it to cable was “misunderstanding” the product. His words recalled commentary on Venu from WBD CEO David Zaslav in July, who said at the time that Venu wouldn’t even have live channels, and would instead be focused on sports or individual games themselves.
“People haven’t seen it, haven’t been able to actually use it and touch it. It doesn’t look like a cable service, right?” Murdoch said. “It doesn’t look like a bundle of channels. You wouldn’t even use the channel brands to market it. So you’re not going to say, ‘It’s Fox Sports 1 and 2 or ESPN.’ Rather, you say, ‘This is your home of NFL or NBA’ … it’s organized by sport and by what the consumer wants, not by trying to manage what channels my game is on tonight.”
Murdoch said he was “excited” to launch Venu, though when exactly that will happen remains a mystery. Disney, Fox, and WBD have asked for an expedited appeals process as they try to override the injunction ruling, and are hoping to get the service to customers by January.
Venu Sports
Venu Sports is the planned live TV streaming service offering sports from ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ABC, FOX, FS1, FS2, BTN, TNT, TBS, and truTV. Programming from ESPN+ and on-demand content will also be available. Users will be able to watch NFL, NBA, MLB, and NCAA games. Subscribers can bundle the product with Disney+, Hulu, or Max. Venu’s launch is on hold thanks to a preliminary injunction.