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Fubo-Disney Deal Will Create New Sports Streaming Service – Sportico

admin January 6, 2025

                        By  <a class="c-link  lrv-a-unstyle-link" href="https://www.sportico.com/author/jacob-feldman/"             >   Jacob Feldman</a>                       <br>Sports Business Reporter<br>    Sports fans are about to get yet another option for streaming games. <a  href="https://www.sportico.com/t/fubo/"  id="auto-tag_fubo_1"  data-tag="fubo"  >Fubo</a> and <a  href="https://www.sportico.com/t/disney/"  id="auto-tag_disney_1"  data-tag="disney"  >Disney</a>&rsquo;s <a  href="https://www.sportico.com/t/hulu/"  id="auto-tag_hulu_1"  data-tag="hulu"  >Hulu</a>+ Live TV service will be merging, with Fubo dropping its lawsuit against Disney and ESPN. Fubo told investors on a call Monday it plans to maintain both the Fubo and Hulu brands and create a new sports &ldquo;skinny bundle&rdquo; featuring ESPN networks and other channels.<br>    That new offering could feature national channels, regional sports networks and digital services such as ESPN+. The ability to create more targeted packages, rather than solely offering a comprehensive, more expensive subscription, was a major issue in Fubo&rsquo;s previous litigation against Disney and ESPN over those company&rsquo;s plans to launch Venu Sports.&nbsp;  <br>   As part of Monday&rsquo;s announced merger, Fubo has dropped that suit, though it remains to be seen if other concerns challenge Venu&rsquo;s creation as a joint venture between Disney, Fox and Warner Bros. Discovery.&nbsp;Under terms of the agreement, Disney will own approximately 70% of Fubo.     <div class="admz" id="adm-inline-article-ad-1">                     <div class="adma boomerang" data-device="Desktop" data-width="300">                  <div style="min-width:300px;min-height:275px;"     class="pmc-adm-boomerang-pub-div ad-text"   data-priority="10" >    <div id="gpt-sprt-dsk-tab-midarticle-uid0"      class="adw-300 adh-250" data-is-adhesion-ad="">         <script type="application/javascript">

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“Fubo will now be able to provide even more sports, including ESPN +, through amended distribution agreements with Disney as well as Fox,” Fubo co-founder and CEO David Gandler said on the investor call. “And crucially, Fubo has the potential to create skinnier sports news and entertainment bundles according to consumer needs.”
Gandler followed up by saying details have not been determined regarding what would be in the smaller packages, or what prices they would be sold for.
Disney will own 70% of the new combined company, which has 6.2 million subscribers as of the most recent numbers being reported. After posting the worst performance in Sportico’s sports stock index mix in 2024 with a 60% drop in price, Fubo’s stock jumped 170% in pre-market trading following news of the merger, and was up 130% to $3.30 a share shortly after the market opened Monday.
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” Disney EVP and head of corporate development Justin Warbrooke said in a statement. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
So-called “skinny bundles” have long been at the top of consumer wish lists for sports fans eager to watch local and national events without paying for a full bundle, including many channels they might not otherwise buy. In the past, channel distributors have generally asked cable providers to offer their complete suite of channels in order to get access to any one of them.

However, putting together an all-in-one sports streaming solution has gotten more challenging in recent years, as major events have moved off cable entirely to streaming services such as Amazon Prime Video and Peacock.
Fans might not initially notice much of a difference in the product, as Fubo intends to continue operating both brands, with Hulu + Live TV remaining available through the Hulu app and as part of a bundle with Hulu, Disney+ and ESPN+ programming.
Disney has increasingly been focused on growing the Disney+ app as a hub for all the company’s digital content. It added Hulu and ESPN+ programming to the platform last year. ESPN, meanwhile, is nearing the launch of its own direct-to-consumer product, internally referred to as “flagship,” later this year.
As a larger streaming company—Hulu + Live TV was already second in the virtual cable market behind YouTube TV—Fubo will likely have better leverage in negotiations with both channel providers like Warner Bros. Discovery and advertisers.
The company has also promised Monday’s move will lead to “more flexible programming packaging to cater to all audiences.”
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