Disney and Fubo Merge to Create Second-Largest Digital Pay-TV Service
Disney is merging its live TV streaming service, Hulu + Live TV, with FuboTV, a streaming company focused on sports. This will create the second-largest online pay-TV service in North America, with 6.2 million subscribers. Only YouTube TV will be bigger.
Hulu + Live TV and Fubo are both virtual multichannel video programming distributors (VMVPDs). This means they offer live TV channels over the internet instead of through traditional cable or satellite. Hulu + Live TV provides access to about 100 channels, including sports, news, and entertainment. Under the deal, Disney will own 70% of the new venture, and Fubo will own the remaining 30%. Both services will continue operating under their current names: Hulu + Live TV and Fubo.
David Gandler, Fubo’s CEO, will lead the combined business. He said the merger will provide more options and flexibility for consumers while helping Fubo grow and improve its financial stability.
The merger also resolves past legal disputes between Disney, Fubo, and other companies. Fubo had previously sued Disney, Fox, and Warner Bros. over a planned sports streaming platform called Venu Sports. With the legal issues now settled, Venu Sports can move forward, offering live sports events from major leagues like the NFL and NBA.
As part of the agreement, Disney will allow Fubo to create new streaming bundles featuring Disney-owned networks like ABC and ESPN. Fubo will also receive financial support from Disney, including a $145 million loan.
The new venture is expected to generate $6 billion in revenue this year and grow to $7.5 billion by 2028. This partnership positions the companies to attract more subscribers looking for online alternatives to traditional cable TV.
For now, both Hulu + Live TV and Fubo will remain available through their respective apps, offering consumers the choice to continue using the services they know.
As Bloomberg’s article states:
- Deal creates No. 2 digital pay-TV provider after YouTube TV
- Disney will own majority stake in new venture with Fubo
Source: Bloomberg
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Disney is merging its live TV streaming service, Hulu + Live TV, with FuboTV, a streaming company focused on sports. This will create the second-largest online pay-TV service in North America, with 6.2 million subscribers. Only YouTube TV will be bigger.
Hulu + Live TV and Fubo are both virtual multichannel video programming distributors (VMVPDs). This means they offer live TV channels over the internet instead of through traditional cable or satellite. Hulu + Live TV provides access to about 100 channels, including sports, news, and entertainment. Under the deal, Disney will own 70% of the new venture, and Fubo will own the remaining 30%. Both services will continue operating under their current names: Hulu + Live TV and Fubo.
David Gandler, Fubo’s CEO, will lead the combined business. He said the merger will provide more options and flexibility for consumers while helping Fubo grow and improve its financial stability.
The merger also resolves past legal disputes between Disney, Fubo, and other companies. Fubo had previously sued Disney, Fox, and Warner Bros. over a planned sports streaming platform called Venu Sports. With the legal issues now settled, Venu Sports can move forward, offering live sports events from major leagues like the NFL and NBA.
As part of the agreement, Disney will allow Fubo to create new streaming bundles featuring Disney-owned networks like ABC and ESPN. Fubo will also receive financial support from Disney, including a $145 million loan.
The new venture is expected to generate $6 billion in revenue this year and grow to $7.5 billion by 2028. This partnership positions the companies to attract more subscribers looking for online alternatives to traditional cable TV.
For now, both Hulu + Live TV and Fubo will remain available through their respective apps, offering consumers the choice to continue using the services they know.
As Bloomberg’s article states:
- Deal creates No. 2 digital pay-TV provider after YouTube TV
- Disney will own majority stake in new venture with Fubo
Source: Bloomberg
Share:
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