Actor Jon Hamm playing Don Draper in Mad Men. Michael Yarish, AMC | AP Call Don Draper, Venu Sports may have a marketing problem. The Disney, Fox, and Warner Bros. Discovery jointly-owned streaming service announced it will launch this fall at $42.99 per month. This price is steep compared to other major streaming services like Netflix, Max, and Peacock but less than YouTube TV or traditional cable bundles which offer a broader range of entertainment.
Venu’s package includes networks like ESPN, Fox, and TNT plus ESPN+, but lacks CBS and NBC, which broadcast significant sports content including NFL games. Venu aims at younger, "cord nevers" who avoid cable costs yet crave live sports. However, the market for such users may be limited, as many prefer YouTube highlights and content from influencers.
Another challenge is competition. Echostar’s Sling TV offers more channels, including NBC, for $60 per month and even lost subscribers despite a broader offering. Sling’s decline highlights the difficulty Venu faces in attracting and retaining subscribers.
Venu’s initial pricing strategy allows users to lock in the $43 rate for 12 months, hinting at future price hikes. Moreover, Disney’s planned ESPN Flagship streaming service in 2025 could feature ESPN at a lower cost, further complicating Venu’s prospects.
While Fox CEO Lachlan Murdoch envisions 5 million subscribers in five years, Sling TV’s struggles suggest this target is ambitious. Successfully marketing Venu to achieve this goal will require substantial investment, potentially undermining its viability.
Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics holds U.S. broadcast rights to all Summer and Winter Games through 2032. NBC Sports broadcasts NFL games.
Original Story https://www.cnbc.com/2024/08/01/venu-sports-challenge-to-find-an-audience.html
Category :
Tags:
