When it comes to streaming services, there are quite a few options in the market right now. But in a surprising twist, it looks like Disney might have catapulted itself near to the top. This is due to a surprise merger between Disney-owned Hulu + Live TV service and Fubo. As a result, it has created one of the largest pay TV streaming providers in the US. As a result of this deal, the combined service now boasts 6.2 million subscribers. This puts the new service just behind YouTube TV.
Settling differences
Thanks to this merger with Disney-owned Hulu + Live TV, it also brings to a close an ongoing legal dispute between Fubo and Venu Sports. For those unfamiliar, Disney, Fox, and Warner Bros. Discovery jointly own Venu Sports.
Fubo filed a lawsuit back in 2024 in an attempt to block Venu Sports’ launch. Fubo had alleged in the lawsuit that Disney, Fox, and Warner Bros. Discovery intentionally charged the company higher fees to license the content. The service was initially planned to launch in August 2024.
Now with this merger in place and as part of the deal, Fubo will drop the lawsuit against the companies. Fubo is still getting something out of this as Disney, Fox, and Warner Bros. Discovery have agreed to pay Fubo $220 million. Disney is expected to provide Fubo with a $145 million loan through 2026.
The dropping of the lawsuit also clears the way for the launch of Venu Sports.
What’s next?
As part of this merger, Disney will sign a new carriage deal with Fubo. This will allow Fubo to create a new Sports & Broadcast service. This service will include Disney’s own sports and broadcast networks, such as ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, and ESPN+.
Fubo and Hulu + Live TV will remain as separate offerings, which is good news for users who don’t want to change their current subscriptions. Users can continue to maintain their individual subscriptions and stream content from the respective apps.
In a statement by Fubo Co-founder and CEO David Gandler, “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. This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”
