The combination of Hulu + Live TV and Fubo: the new giant in pay TV

This week saw the surprise announcement of a merger between two major players in the streaming services space - Disney's Hulu + Live TV and Fubo. The move will create one of the largest pay-TV providers in the US and open up new opportunities for the development of sports streaming project Venu Sports.

New structure and terms of the agreement

Under the terms of the deal, Disney $DIS will acquire a 70% stake in Fubo, with Fubo's current management, led by its co-founder and CEO David Gandler, continuing to run the newly formed entity. The combination of the two streaming platforms will bring the total subscribers to 6.2 million, guaranteeing Fubo and Hulu + Live TV the position of the second largest streaming TV provider in the US, after YouTube TV.

As part of the deal, Fubo has decided to withdraw its lawsuit against Venu Sports, a joint initiative between Disney, Fox Corp and Warner Bros. Discovery (WBD), which was due to launch in August 2024 but was blocked by Fubo's lawsuit. To resolve the dispute, Disney, Fox and WBD will pay Fubo $220 million and Disney will provide Fubo with a $145 million loan through 2026.

Plans for new sports and entertainment content

The combination of Hulu + Live TV and Fubo also marks the creation of a new sports and entertainment streaming service. Disney and Fubo have agreed to a new distribution deal that will allow Fubo to offer its subscribers access to Disney's sports and entertainment channels such as ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS as well as ESPN+. The move shows how these two platforms are poised to reshape the market and offer users wider options in sports and entertainment.

The current platforms will be retained

Despite the merger, both services will remain available through their original apps. Hulu+ Live TV will continue to be part of the Hulu, Disney+ and ESPN+ package, while Fubo will retain its own app. The move will preserve the existing user base and offer customers more flexibility in streaming.

Steps to develop Venu Sports

The combination of Fubo and Hulu+ Live TV also opens up new possibilities for the Venu Sports project, which has long been anticipated as a service aimed at sports fans. The service will be priced at $42.99 per month and will offer a wide range of sports, including NFL, NBA, MLB, NHL, tennis, football, golf, NASCAR and UFC games. The move comes at a time when WBD already offers its sports broadcasts on the streaming service Max, and Disney plans to launch a separate ESPN service this year.

The combination of Hulu + Live TV and Fubo thus changes the dynamics in the US streaming services market, bringing not only new options for users, but also a strong positioning for future sports and entertainment projects such as Venu Sports.

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