ESPN, Fox, and Warner Bros. Discovery to launch joint sports streaming platform

[doctornick]

So when you think about it, sports broadcasts are carried via the following ways in the US:

1. Over the Air Networks (i.e. ABC, CBS, NBC, FOX, CW)
2. Paid national cable channels (e.g. ESPN, FS1, TNT, etc)
3. Paid regional sports networks (e.g. NBC Sports Networks, Bally Sports, Spectrum Sports, etc)
4. Exclusively on streaming (e.g Prime, Peacock, Apple, etc have exclusive content)

Historically, a person getting cable/satellite could use it to get the first 3 all in one place and #4 didn't exist.

What this service does is basically replace #2 and it does so pretty effectively - ESPN and FS1 are the main players of cable sports (including college conference affiliated networks). #1 can be acquired with an antennae for most folks. IMHO this works for people who watch most bigger national broadcasts for sports as opposed to local teams.

#4 is where the fracturing occurs and it has gotten work as Apple, Prime and now Netflix have dipped into the stream exclusive place. Among legacy media, I feel like Peacock has been the most aggressive for putting sports only on streaming (Paramount+ and MAX do this a bit but not to the same degree). This is probably the area where sports fans will miss out the most since it would take a sports bundle of basically everyone to get all of this content - this is where the biggest shift has occurred from the halcyon days of "cable gets you everything".

#3 is the area of growth IMHO. This is also where streaming based cable substitutes - YouTubeTV, Sling, Hule Live TV, etc - have their big pull because you can often get your local NBC Sports provider or Bally, etc with them. If you want to follow your local MLB, NBA or NHL team and that's your prime sports interest then an offering like Venu might not be as valuable.

Ironically, of course, the Bally suite of channels was previously owned by FOX and briefly by Disney who had to divest them. It would be interesting to see if there is a way to incorporate such networks into a service like Venu because that is where I think you'd get a big jump in interest. Maybe it could be some sort of "add on" and different tier?

 

[Big_Shakalaka]

With Warner Bros. Discovery loosing their rights to the NBA, I wonder how this effects the attractiveness of Venu. I'd imagine that was a big anchor point of this deal.

 

[Andrew C]

With Warner Bros. Discovery loosing their rights to the NBA, I wonder how this effects the attractiveness of Venu. I'd imagine that was a big anchor point of this deal.

They lost their package to NBCUniversal (and somewhat to Amazon), who is not a part of Venu, right?

WB is suing apparently.

 

[doctornick]

With Warner Bros. Discovery loosing their rights to the NBA, I wonder how this effects the attractiveness of Venu. I'd imagine that was a big anchor point of this deal.

ESPN still has the majority of national NBA games so it's not that bad.

Warner Bros Discovery still has a decent bit of sports programming though - MLB, NHL, part of March Madness, a sliver of the college football playoffs, some other college sports (Big East hoops in the future, MWC and ACC football), the US National team games for soccer. They are the weakest link of the three but they definitely add value to the overall package.

 

[MisterPenguin]

Disney, Fox & Fubo Lawyers Clash In NY Court As Venu Sports Antitrust Lawsuit Goes Before Judge

Lawyers for both sides butted heads Tuesday in a key hearing in the antitrust lawsuit Fubo filed against Disney, Fox and Warner Bros. Discovery.

deadline.com

 

[Dead2009]

So how would this work for NFL games on FOX? Since they are regionalized, would you be geolocked into whatever game your local FOX affiliate carries or would it include the potential for any game FOX is carrying anywhere? I assume not since that would seem to undermine Sunday Ticket.

I would imagine it carries whatever your Fox channel is carrying (local team and then the game after if there is one)

 

[MisterPenguin]

Disney-Fox-WBD Sports Streaming Venture Has One Major Advantage, Fubo CEO David Gandler Testifies: “Price Is King”

Fubo CEO David Gandler traded jabs Tuesday with attorneys for the media companies behind streaming joint venture Venu Sports in an antitrust hearing.

deadline.com

 

[BrianLo]

NY Judge Grants Fubo Request To Block Disney-Fox-WBD Venu Sports Bundle; Companies Vow Appeal In Antitrust Case

A federal judge granted Fubo's request that a sports bundle of Disney, Fox Corp. and Warner Bros. Discovery channels, be blocked on antitrust grounds.

deadline.com

I’m surprised no one has really commented on this ruling yet… the stock price didn’t even react.

 

[MisterPenguin]

Judge In Fubo Lawsuit Against Disney, Fox And Warner Bros Discovery Eyes February Start To Jury Trial

The judge who backed Fubo in a key ruling in its antitrust lawsuit against Disney, Fox and Warner Bros. Discovery is eyeing a February 2025 trial start.

deadline.com

 

[MisterPenguin]

Judge Rules Against Disney-Fox-Warner Sports Streamer As FuboTV’s Lawsuit Advances

The lawsuit targets allegedly anticompetitive bundling requirements that FuboTV claims lead to increased costs for consumers, who are forced to pay for content they don’t watch.

www.hollywoodreporter.com

 

[Hawkeye_2018]

So Venue is probably never going to happen now. Maybe this eventually leads to better prices for consumers but I'm not holding my breath

 

[LSLS]

So Venue is probably never going to happen now. Maybe this eventually leads to better prices for consumers but I'm not holding my breath

Eh it will for most just in that I still don't buy there being large overlap among sports (so most will only purchase one or MAYBE 2 of these streaming services as opposed to all of them). I think college football is really the only one I could be convinced that this would work for, and even then it would assume your team is on multiple networks you can't get with antenna, but would be covered by this.

 

[doctornick]

I think it will likely still happen, just that the content providers will have to allow some decoupling of channels to Sling, YouTubeTV, etc as well so those providers will be able to offer more varied bundles as well.

 

[Hawkeye_2018]

A sports only package would doom the majority of these bundled channels. And if Disney and WB have to offer these sports only packages to providers like Sling and Fubo they will for sure be raising the rates.

 

[DCBaker]

Here's a new development:

NEW YORK and BURBANK, Calif., January 6, 2025 – FuboTV Inc. (NYSE: FUBO) and The Walt Disney Company (NYSE: DIS) today announced that they have entered into a definitive agreement for Disney to combine its Hulu + Live TV business with Fubo (the “Transaction”), forming a combined virtual MVPD company. The Transaction will enhance consumer choice by making available a broad set of programming offerings, and is subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions.

Under the terms of the definitive agreement, at closing, Disney will own 70% of Fubo. Fubo’s existing management team, led by Fubo Co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.

“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” said Gandler. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”

“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,” said Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company. “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.”

Combined Business to Provide Enhanced Consumer Choice

Fubo and Hulu + Live TV each provide customers the ability to stream a broad array of live broadcast and cable networks on their connected TVs, mobile phones, tablets, and other internet-connected devices.

Combining the businesses of Fubo and Hulu + Live TV—which together have over 6.2 million subscribers in North America — will facilitate an enhanced choice of programming packages and address a variety of consumer preferences at attractive price points.

In connection with the Transaction, Disney will enter into a new carriage agreement with Fubo that will allow Fubo to create a new Sports & Broadcast service, featuring Disney’s premier sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.

Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings post-closing. Hulu + Live TV, a leader in entertainment programming, will continue to be streamed in the Hulu app and be offered as part of the attractive bundle with Hulu, Disney+ and ESPN+. Fubo, which streams more than 55,000 live sporting events annually, will continue to serve its subscribers in the Fubo app.

The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney.

Combined Company will Benefit from Synergies

Following the closing of the Transaction, Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors. Gandler will also serve on the board of directors continuing as Fubo’s CEO. The Transaction will provide the combined company with the resources and support of Disney, and the existing Fubo management team will continue to focus on driving growth and profitability.

The Transaction will also enable Fubo shareholders to benefit from synergies of the combination. The combined business will realize synergies through more flexible programming packaging to cater to all audiences, greater innovation, and sales and marketing opportunities.

The combined company is projected to be well-capitalized and cash-flow positive immediately after the closing of the Transaction.

Transaction Details and Litigation Settlement

In conjunction with the Transaction, Fubo has settled all litigation with Disney and ESPN related to Venu Sports, the previously announced sports streaming platform planned by ESPN, FOX and Warner Bros. Discovery. Fubo has also settled all litigation with FOX and Warner Bros. Discovery.

In connection therewith, at signing of the Transaction, Disney, FOX and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million.

In addition, Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of the Transaction.

Additionally, a termination fee of $130 million will be payable to Fubo under certain circumstances, including if the Transaction fails to close due to the failure to obtain requisite regulatory approvals on the terms and conditions set forth in the definitive agreement.

Full release:

Fubo And Disney’s Hulu + Live TV Virtual MVPD Businesses To Combine - The Walt Disney Company

Disney to combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company The combined business will operate under …Read More

thewaltdisneycompany.com

 

[Andrew C]

Enhance consumer choice? lol. Buying up all the other players, and then saying people will get more choice by having a variety of offerings is pretty funny...

 

[MisterPenguin]

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

The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

www.hollywoodreporter.com

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

The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

The Walt Disney Co. will merge its streaming multichannel video service Hulu With Live TV with its competitor Fubo in a surprise deal that will shake up the streaming TV business, the companies said Monday.

The new company will continue to be traded publicly under the Fubo name, however, Disney will control 70 percent and appoint a majority of the board. Fubo management, including co-founder and CEO David Gandler, will run the combined venture.

The deal will do a couple of big things if and when it is completed (execs say it could take 12-18 months): For starters, it will create a much bigger player in the virtual multichannel video provider (vMVPD) space, one that can more aggressively take on the market leader YouTube TV. YouTube TV said a year ago that it had 8 million subscribers, while Hulu + Live TV had 4.6 million subscribers and Fubo had 1.6 million subscribers, giving a combined offering 6.2 million subs.

On a conference call Monday morning, Gandler said that the combined venture will be “well positioned to fairly compete with our peers.”

After the deal closes, the company will continue to offer both Hulu + Live TV and Fubo under distinct brands, with Hulu continuing to be available in the larger Disney bundle. Fubo will negotiate carriage deals on behalf of the services, independent from Disney.

Notably, the deal will also end Fubo’s legal action against the Venu sports streaming service, potentially allowing it to proceed. Venu is the skinny streaming bundle that includes Disney’s ESPN channels and ABC, Fox and Fox Sports 1, and the sports channels from Warner Bros. Discovery.

Fubo sued and secured an injunction pending the trial, putting the service on ice for the entire NFL season.

According to the companies, Disney, Fox and WBD will pay Fubo $220 million, with Disney also providing a $145 million term loan through 2026. Fubo would also receive a $130 million termination fee if the deal fails to close under certain circumstances.

Fubo will also sign a new distribution deal with Disney, allowing it to offer a less expensive bundle build around ESPN and ABC, something close in design to what Venu was offering. Gandler says it will allow Fubo “to deliver flexible, innovative and competitive content packages to consumers, particularly around sports.”

A source says that launching Venu is still the plan, though Disney is laser focused on its ESPN flagship streaming product launching later this year. The settlement will pave the way for a bunch of different options for consumers to get ESPN at varying price points.

The deal does not include the core Hulu SVOD service, and is focused only on the vMVPD offering. Gandler says that the Hulu and Fubo products could be distinct.

“One of the most important things is we are now stewards of an iconic brand, with respect to Hulu,” Gandler said on the call. “The Hulu live product, as you know, is embedded into Hulu SVOD, and so that gives us a lot of value with respect to maintaining retention. And so I think having two separate platforms today, obviously, it’s not ideal. We believe that there are synergies on the backend in areas like broadcasting and transmission, CDN, etcetera, but at the moment, 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.”

Bloomberg first reported news of the talks.

 

[Disney Irish]

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

The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

www.hollywoodreporter.com

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

The deal will create a streaming multichannel video service that is second only to YouTube in scale, while potentially allowing the Venu service to move forward.

The Walt Disney Co. will merge its streaming multichannel video service Hulu With Live TV with its competitor Fubo in a surprise deal that will shake up the streaming TV business, the companies said Monday.

The new company will continue to be traded publicly under the Fubo name, however, Disney will control 70 percent and appoint a majority of the board. Fubo management, including co-founder and CEO David Gandler, will run the combined venture.

The deal will do a couple of big things if and when it is completed (execs say it could take 12-18 months): For starters, it will create a much bigger player in the virtual multichannel video provider (vMVPD) space, one that can more aggressively take on the market leader YouTube TV. YouTube TV said a year ago that it had 8 million subscribers, while Hulu + Live TV had 4.6 million subscribers and Fubo had 1.6 million subscribers, giving a combined offering 6.2 million subs.

On a conference call Monday morning, Gandler said that the combined venture will be “well positioned to fairly compete with our peers.”

After the deal closes, the company will continue to offer both Hulu + Live TV and Fubo under distinct brands, with Hulu continuing to be available in the larger Disney bundle. Fubo will negotiate carriage deals on behalf of the services, independent from Disney.

Notably, the deal will also end Fubo’s legal action against the Venu sports streaming service, potentially allowing it to proceed. Venu is the skinny streaming bundle that includes Disney’s ESPN channels and ABC, Fox and Fox Sports 1, and the sports channels from Warner Bros. Discovery.

Fubo sued and secured an injunction pending the trial, putting the service on ice for the entire NFL season.

According to the companies, Disney, Fox and WBD will pay Fubo $220 million, with Disney also providing a $145 million term loan through 2026. Fubo would also receive a $130 million termination fee if the deal fails to close under certain circumstances.

Fubo will also sign a new distribution deal with Disney, allowing it to offer a less expensive bundle build around ESPN and ABC, something close in design to what Venu was offering. Gandler says it will allow Fubo “to deliver flexible, innovative and competitive content packages to consumers, particularly around sports.”

A source says that launching Venu is still the plan, though Disney is laser focused on its ESPN flagship streaming product launching later this year. The settlement will pave the way for a bunch of different options for consumers to get ESPN at varying price points.

The deal does not include the core Hulu SVOD service, and is focused only on the vMVPD offering. Gandler says that the Hulu and Fubo products could be distinct.

“One of the most important things is we are now stewards of an iconic brand, with respect to Hulu,” Gandler said on the call. “The Hulu live product, as you know, is embedded into Hulu SVOD, and so that gives us a lot of value with respect to maintaining retention. And so I think having two separate platforms today, obviously, it’s not ideal. We believe that there are synergies on the backend in areas like broadcasting and transmission, CDN, etcetera, but at the moment, 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.”

Bloomberg first reported news of the talks.

I wonder if this will be the long term final nail in the Hulu branding coffin. I know it says that "Hulu" would continue to be used, but I can't help but feel this is the next step on the eventual end of the Hulu name.

 

[MisterPenguin]

I wonder if this will be the long term final nail in the Hulu branding coffin. I know it says that "Hulu" would continue to be used, but I can't help but feel this is the next step on the eventual end of the Hulu name.

Possibly...

On one hand, the future of linear live "TV" is going to be sports, because almost all other entertainment (besides newscasts) is just recorded content to be played on demand. So, with Hulu+Live being merged with Fubo, there may not be a need to keep the Hulu brand.

And, similarly, with Hulu+ (without "Live") being part of Disney+, it may not need a separate branding.

On the other hand, "Hulu+" (along with Star+ internationally) may be a way that Disney can wall off adult fare from children's fare.

Or, they can keep the walled garden and rebrand Hulu as Star. Or vice versa.

 

[Disney Irish]

Possibly...

On one hand, the future of linear live "TV" is going to be sports, because almost all other entertainment (besides newscasts) is just recorded content to be played on demand. So, with Hulu+Live being merged with Fubo, there may not be a need to keep the Hulu brand.

And, similarly, with Hulu+ (without "Live") being part of Disney+, it may not need a separate branding.

On the other hand, "Hulu+" (along with Star+ internationally) may be a way that Disney can wall off adult fare from children's fare.

Or, they can keep the walled garden and rebrand Hulu as Star. Or vice versa.

In my vision back in 2019 when this all started and we started talking about the future of the service, when I was predicting the eventual merger, parental controls, and such, it was that Hulu would be rebranded to Star. We'll see what happens....