Disney to Merge Hulu + Live TV With Fubo, Taking on YouTube TV and Ending Venu Suit

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In an unexpected move, The Walt Disney Company plans to combine its multichannel streaming video service Hulu with Live TV with the streaming television rival Fubo, according to a representative from Fubo. This merger is expected to cause significant changes in the streaming TV industry.

If the agreement is finalized, it will result in a significant expansion in the virtual multichannel video programming distributor (vMVPD) market. This expanded entity would then have the capacity to challenge YouTube TV more forcefully. A year ago, YouTube TV reported 8 million subscribers, while Hulu + Live TV and Fubo each had 4.6 million and 1.6 million subscribers respectively. Combined, they boasted a customer base of approximately 6.2 million.

Significantly, this agreement would terminate Fubo’s ongoing lawsuit against the Venu sports streaming service, paving the way for it to move forward. Venu is a streamlined bundle that offers Disney’s ESPN channels, ABC, Fox, Fox Sports 1, and sports channels from Warner Bros. Discovery.

Fubo managed to file a lawsuit and obtain a temporary restraining order, thus halting their service during the whole NFL season while the trial was ongoing.

The agreement excludes the fundamental Hulu Streaming Video on Demand (SVOD) service, instead, it primarily concentrates on the Virtual Multichannel Video Programming Distributor (vMVPD) offering. Officially, it’s set to be unveiled on Monday.

As per Bloomberg’s initial report, it’s stated that the new joint venture will be primarily owned by Disney (70%), while Fubo will hold the remaining 30%. Both entities aim to maintain their services under the brand names Fubo and Hulu.

More to come.

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2025-01-06 16:54