Fubo CEO David Gandler is having a great start to 2025 after spending much of last year engaged in what he described as an existential “duel” for his sports-first streaming business. Fubo sued Disney, Fox and Warner Bros. Discovery in February over their requirement that Fubo carry dozens of non-sports channels as a condition to offer sports networks as well as those companies’ plan to launch a new competitor, Venu Sports.
“We were fighting for survival,” Gandler said in an interview Tuesday.
On Monday, Fubo announced it had settled all related litigation as part of a multifaceted agreement. Disney, Fox and WBD will pay Fubo $220 million, while Disney will take a 70% stake in a new company that combines the Hulu + Live TV business with Fubo. Gandler and the existing Fubo management team will lead the venture (which I’ll call New Fubo—or really anything but Hubo.)
Fubo’s stock is now up more than 300% year-to-date.
Disney also agreed to a new carriage agreement with Fubo that will allow the company to offer a multichannel, sports-focused service, AKA a “skinny bundle.”
Within 36 hours of the deal’s announcement, Gandler was already meeting with Fubo staffers tasked with developing that offering. He plans to release it as soon as possible. As his company nears its 10th anniversary, Fubo finally has the opportunity to take a large step in the direction of Gandler’s initial vision: a streaming service for sports fans.
Gandler also has big plans for Hulu + Live TV, pending regulatory approvals of the tie-up, which could take up to 18 months. The new company would have 6.2 million North American subscribers between the two brands, giving it additional leverage in negotiations with content distributors and advertisers.
“This creates a competitor that can compete, from a scale perspective, with DirecTV and DirecTV Stream, and Dish and Sling TV, and YouTube TV,” Gandler said. “You have a company that … can fiercely compete with the likes of Google’s YouTube.”
In recent years, YouTube TV has extended its lead as the largest virtual cable TV provider. It reported having more than 8 million subscribers in February 2024 as it gained on traditional pay TV offerings from Charter and Comcast. YouTube’s addition of Sunday Ticket rights and the development of multiview features have made the service a favorite of sports fans.
In December, however, YouTube TV increased its price by 14% to $83/month, citing rising content costs. Many users complained, but other services offered little respite. Hulu’s Live TV plan starts at $82/month; Fubo’s “Essential” plan currently costs $80/month after a promotional period.
If 2024 was the year of YouTube’s dominance as the go-to digital TV provider, 2025 portends to be the year of many ways to watch televised sports.
With Fubo’s lawsuit now complete, Venu has signaled intentions to launch, possibly as soon as this spring. Disney’s ESPN is also planning to launch a direct-to-consumer service by the fall encompassing all of its content. DirecTV has expressed interest in building a sports-only channel package, while leagues and regional sports networks continue growing their own streaming subscriptions.
Gandler said he welcomes the new offerings. “I think the only group that should really take a victory lap today is the consumer, because they are the ultimate winner here, and that's what we fought for,” he said.
In the streaming wars' next phase, Fubo is positioning itself as a “super aggregator,” with hopes to let fans choose from different price points and receive access to various services such as ESPN’s channels, NBA League Pass, or their local sports network based on their interests.
But Fubo isn't alone. Amazon sees its platforms as content hubs; it would also like to sell you access to FanDuel Sports Networks as an add-on. Apple’s TV ambitions are similar. Disney too is building an entertainment destination as it pulls more content into the Disney+ app, and ESPN looks for ways to connect its apps to events being broadcast outside its universe.
The problem is that none of them are able to offer everything in one place. Each has kept a tight grip on its exclusive programming, as have Netflix and Peacock, etc. In an increasingly post-cable world, sports rights seem to operate like heads of the feared Hydra: Add one to an aggregated service, and two more pop up from new entrants. Fans are left to be devoured by the confusion.
Fubo is hopeful its position without exclusive rights will make it a friendlier aggregation option for those services looking to expand their reach, but accomplishing the ultimate goal seems a far way off. That said, Gandler navigated a long, winding road to even get here. And he’s still fighting.
