Disney just bought another streamer, and YouTube TV should be scared

Summary

Disney has announced a deal to merge Hulu + Live TV with Fubo.
The deal is in the regulatory approval process and may take 12-18 months to close.
Hulu+ Live TV and Fubo will remain separate offerings.

Disney is taking aim at YouTube TV with its latest move in the streaming space.

The Walt Disney Company has announced it has agreed to merge Hulu + Live TV with Fubo. The deal is pending regulatory approval. Under the terms of the agreement between the two companies, Disney will own 70 percent of Fubo, with Fubo’s co-founder and CEO, David Gandler, managing the newly combined company.

“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” Gandler said in a press release. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility.”

Why I picked Fubo TV over YouTube TV as an Apple TV 4K owner

As an Apple TV 4K owner, Fubo TV has a big advantage over YouTube TV.

Hulu + Live TV and Fubo will still be separate offerings

The newly combined company could be a strong rival to YouTube TV’s market dominance

Hulu streamer rendered on a TV in the background.

Hulu / Pocket-lint

Executives say the deal could take 12-18 months to make it through the regulatory approval process and close. This deal does take direct aim at YouTube TV’s market dominance. A year ago, YouTube TV stated it had 8 million subscribers, while Hulu + Live TV had 4.6 million subscribers, and Fubo had 1.6 million subscribers (via The Hollywood Reporter).

While Hulu + Live TV’s and Fubo’s combined subscribers come up short of YouTube TV, it could start to make up ground once the deal closes. Fubo and Hulu + Live TV will remain available as separate offerings after the deal closes. Hulu + Live TV will still be available in the Hulu app and offered as part of a bundle with Disney+ and ESPN+. Fubo subscribers will still be able to watch the service’s live sporting events through the Fubo app.

Fubo will negotiate carriage deals with content providers on behalf of Hulu + Live TV and Fubo, independent of Disney. In conjunction with the merger deal, Disney will enter into a new carriage agreement with Fubo that will allow it to create a new Sports and Broadcast service featuring Disney’s sports and broadcast networks, such as ABC, ESPN, EPSN2, ESPNews and ESPN+.

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Could this pave the way for Venu Sports?

The end of Fubo’s lawsuit could pave the way for the mega-sports streamer

Venu Sports

In light of this deal with Disney, Fubo has settled all its litigation with Disney, Fox and Warner Bros. Discovery related to Venu Sports. This means that the sports-focused streamer, which is a joint venture between Disney’s ESPN, Warner Bros. Discovery and Fox could finally proceed after a year in traction. When it was first announced in 2024, the pitch for Venu Sports was a compelling one, as this $43 per month streaming service would bring all three companies’ portfolio of live sports, including coverage from the NFL, NBA, NHL and MLB to a single streamer. It is unknown if the same pricing would be available should Venu finally move forward, but this is certainly a tantalizing development for sports fans, and could save those who had been relying on YouTube TV for sports coverage some serious money.