Fubo and Disney Team Up to Shake Up Sports Streaming Landscape

Fubo CEO David Gandler is celebrating a triumphant start to 2025 after a tumultuous battle for the survival of his sports-first streaming service. Following months of legal wrangling with Disney, Fox, and Warner Bros. Discovery (WBD), Fubo emerged victorious, securing a game-changing settlement and partnership poised to reshape the competitive streaming market.

A Legal Duel for Survival

Fubo’s existential crisis began in February 2024, when the company filed a lawsuit against Disney, Fox, and WBD. The complaint centered on the streaming giants’ bundling requirements, which forced Fubo to carry dozens of non-sports channels in exchange for access to sports networks. Compounding the pressure was the impending launch of Venu Sports, a direct competitor planned by the trio.

“We were fighting for survival,” Gandler said in a recent interview.

The resolution of this legal duel came on Monday, as Fubo announced a multifaceted settlement that includes a $220 million payment from Disney, Fox, and WBD. Most significantly, Disney will acquire a 70% stake in a new venture that merges Hulu + Live TV with Fubo. This combined entity, to be led by Gandler and his existing management team, will focus on delivering a sports-centric streaming experience under a reimagined Fubo brand.

Transformative Partnership

The partnership is a landmark moment for Fubo, whose stock has surged more than 300% year-to-date. Under the new agreement, Disney also committed to a long-term carriage deal, enabling Fubo to introduce a streamlined, sports-focused “skinny bundle.” Development of this offering is already underway, with plans for a swift rollout.

As the company approaches its 10th anniversary, Gandler sees the partnership as an opportunity to fulfill his original vision: creating the ultimate streaming platform for sports fans. The combined venture’s 6.2 million North American subscribers will also provide critical leverage in negotiations with advertisers and content distributors.

“This creates a competitor that can fiercely contend with the likes of DirecTV, Sling TV, and YouTube TV,” Gandler said.

YouTube TV: The Current Champion

YouTube TV remains the largest virtual cable TV provider, boasting over 8 million subscribers as of February 2024. Its exclusive NFL Sunday Ticket rights and advanced features like multiview capabilities have cemented its status as a favorite among sports fans. However, a recent 14% price hike to $83 per month has sparked dissatisfaction among some subscribers.

Despite this, YouTube TV continues to dominate, with its expansive offerings drawing comparisons to traditional pay-TV services from Charter and Comcast.

The Changing Face of Sports Streaming

The Fubo-Disney partnership is just one development in a rapidly evolving sports streaming landscape. Venu Sports is set to debut this spring, and ESPN plans to launch a direct-to-consumer platform by fall 2025. DirecTV, regional sports networks, and major leagues are also entering the fray with bespoke subscription services.

Gandler welcomes the growing competition, viewing it as a win for consumers. “The only group that should take a victory lap today is the consumer,” he said. “That’s what we fought for.”

A Super Aggregator Vision

Fubo’s ambition is to position itself as a “super aggregator”—a central hub offering tiered pricing for access to services like ESPN channels, NBA League Pass, and regional sports networks. The strategy aims to simplify the fragmented streaming market while empowering fans to tailor their viewing experiences.

However, Fubo faces competition from tech giants like Amazon and Apple, which are building their own content hubs. Disney is also integrating more content into its Disney+ app, while ESPN explores ways to link its platforms with external broadcasts. The fragmented market’s complexity remains a challenge, with exclusive content rights acting as barriers to full aggregation.

The Road Ahead

Fubo’s latest moves mark a significant turning point in its decade-long journey, but Gandler acknowledges there is much work to be done. By staying agile and consumer-focused, Fubo aims to carve out a distinct niche in the crowded streaming marketplace, delivering on its promise to sports fans.

As the industry heads into 2025, the competition is set to intensify. The emergence of new players and models ensures that fans will have more choices than ever, heralding a new era in sports streaming.