Hulu+ Live TV and Fubo will merge their internet TV businesses, Disney announced Monday.
Disney, who owns Hulu, will be the majority owner of the new Fubo.
The two services have about 6.2 million subscribers between them and both services will continue to be available after the merger is completed. YouTube TV claimed last year to have more than 8 million subscribers on its own, meaning it remains the largest live television streaming platform.
“Having two separate platforms today, obviously, it’s not ideal,” Fubo co-founder and CEO David Gandler said Monday during a call with investors, according to CNBC and The Hollywood Reporter. “I think we want to really focus on providing consumers with choice, and the Hulu product is really focused on providing a full entertainment bundle of sports, news and entertainment, and Fubo will continue to focus on its sports first service, with the ability to launch skinnier sports bundles.”
The merger also settled a lawsuit over Venu, a planned streaming services combining sports content from Disney (ESPN), Fox Sports and Warner Bros. Discovery (TNT, TBS). A U.S. judge temporarily blocked that service from launching in 2024.
Fubo, which is sports-focused with an emphasis on giving cordcutters a way to watch their local teams, had argued Venu would have solidified those three networks’ grasp on sports broadcasts and create an uncompetitive market. The merger and settlements should allow it easier negotiations to carry sports content from its former competitors.
It’s unclear if Venu will continue, as TV rights for several sports leagues are set to shuffle around in coming years.
