A significant consolidation in the streaming media landscape was announced today as Disney-owned Hulu + Live TV and sports streaming provider Fubo revealed plans to merge their operations, creating what will become the second-largest streaming pay TV operator in North America.
The merger brings together a combined subscriber base of 6.2 million streaming customers and represents approximately $6 billion in revenue. While the new entity will be led by Fubo’s current executive team, both services will maintain separate applications for their users. The deal is expected to take between 12-18 months to reach completion.
As part of the agreement, Fubo will withdraw its antitrust lawsuit against Venu Sports, a streaming joint venture between Disney, Fox, and Warner Bros. Discovery. The legal dispute had previously caused delays in Venu Sports’ launch timeline.
The merged company will trail only YouTube TV in market share, with Google’s streaming service having reported over 8 million subscribers during its last public disclosure. Fubo’s co-founder and CEO David Gandler expressed enthusiasm about the collaboration with Disney, emphasizing the merger’s potential to enhance consumer choice and flexibility in the streaming marketplace.
For existing customers, the merger’s impact varies depending on their current subscription status. While the deal doesn’t affect standalone Hulu on-demand service subscribers, Hulu + Live TV will continue to be available as part of the broader streaming bundle that includes Disney+ and ESPN+.
The announcement came during a mixed day on Wall Street, where technology stocks maintained positive momentum amid anticipation of artificial intelligence developments at the Consumer Electronics Show in Las Vegas. However, blue-chip stocks showed some uncertainty as investors awaited upcoming economic data, including reports on the services sector and job openings.
The consolidation represents a significant shift in the streaming industry’s competitive landscape, bringing together Hulu’s established presence in the live TV streaming market with Fubo’s sports-focused platform. The merger appears strategically positioned to capitalize on the growing demand for diverse streaming options while creating a more robust competitor in the increasingly crowded digital entertainment space.
Industry observers note that this merger reflects the ongoing evolution of the streaming marketplace, where scale and content diversity are becoming increasingly crucial for long-term success. The combination of Hulu + Live TV’s broad entertainment offerings with Fubo’s sports-centric approach could create a more comprehensive streaming solution for consumers seeking alternatives to traditional cable television.
The transaction also highlights the complex relationships between major media companies in the streaming era, where competition and collaboration often coexist. The resolution of the Venu Sports lawsuit as part of the merger demonstrates how legal challenges and business opportunities can intersect in the rapidly evolving digital media landscape.
This consolidation follows a broader trend of streaming service providers seeking ways to strengthen their market positions through strategic partnerships and mergers, as the industry continues to mature and competition for subscribers intensifies. The combined entity’s ability to leverage both companies’ strengths while maintaining separate user experiences suggests a careful approach to integration that prioritizes customer retention and service
continuity.