The Era of Consolidation Has Begun – Disney to combine Hulu + Live TV and Fubo

With Hulu + Live TV’s 4.6 million subscribers and Fubo’s 1.6 million, the newly formed entity will boast a combined subscriber base of 6.2 million—making it one of the largest digital pay-TV providers in the U.S.

This merger highlights a growing trend: media companies consolidating resources to adapt to a saturated streaming market. In 2025, we are likely to see more mergers and acquisitions as companies navigate increasing competition, consumer subscription fatigue, and rising churn rates.

The Reason for Consolidation

As nearly every major media company has launched its own streaming platform, consumers now face a dizzying array of choices. Hulu + Live TV, YouTube TV, Netflix, Disney+, and FuboTV are just a few of the options fighting for viewer attention.

Adding to the pressure, the average consumer is subscribing to fewer services than in previous years. Inflation and economic uncertainty have prompted households to cut back on discretionary spending, including streaming subscriptions.

Further, consumers are increasingly willing to trade one subscription for another depending on which service has the trending shows of the month. This lack of loyalty creates a cycle of high marketing costs and unpredictable revenue streams. By combining Hulu + Live TV and Fubo, Disney aims to offer a more comprehensive product that caters to a broader audience, reducing churn by keeping customers within its ecosystem.

Mergers as the Future of Streaming

Disney’s decision to merge these two platforms reflects a broader strategy of consolidation within the media industry. As streaming growth slows, companies are looking to scale operations and reduce redundancies. While these services could fight each other for market share by producing & licensing better content or offering more competitive pricing, simply buying your competitor is often a much easier option (whether or not that is good for the industry).

By controlling 70% of Fubo, Disney gains access to a loyal sports-focused audience, complementing Hulu + Live TV’s general entertainment base. This combination not only strengthens Disney’s market position but also sets a precedent for other media companies to follow suit.

The Impact on Media Rights Owners

For people and businesses that own the rights to TV shows and other media distributed to streaming services, this wave of consolidation raises important questions. With fewer players in the market, competition for licensing deals could decline, potentially leading to less favorable terms and reduced revenue for content creators. Media rights holders may find themselves negotiating with a smaller pool of buyers who wield greater leverage, making it harder to command premium pricing. At the same time, larger platforms may prioritize in-house productions, further reducing opportunities for third-party content providers. These dynamics underscore the need for rights owners to adapt their strategies in an increasingly consolidated market.

2025 could be a defining year for media mergers. As smaller platforms struggle to compete against industry giants, partnerships and acquisitions may become the norm. These moves will not only impact consumers but will surely change the media purchasing landscape in the coming years.