Updated: Why Are DIRECTV & Dish Fighting the Hulu-Fubo Deal?

By Phillip Swann
The TV Answer Man – Follow me on X.

TV Answer Man, I read that DIRECTV and Dish are trying to stop the Fubo-Hulu merger deal and the Venu sports service. How come? What is the strategy here? – David, Boulder, Colorado.

David, Disney this week announced that it will merge its Hulu Live streaming service with the Fubo live streamer as part of an agreement that calls for Fubo to withdraw its anti-trust lawsuit against Venu, a pending sports streaming venture jointly owned by Discovery Warner Bros., Fox and Disney.

Update: Fox, Disney and Warner Bros. Discovery Pull Plug On Venu

The news likely was a surprise at DIRECTV headquarters since it was a supporter of Fubo’s legal attack on Venu which won a temporary injunction against the sports streamer last August. The Fubo-Disney agreement could clear the way for Venu to launch in the coming weeks.

However, DIRECTV and Dish this week filed letters with the court presiding in the Fubo/Venu case calling for the judge to keep the injunction in place. The two satcasters accused Disney of ‘buying’ a dismissal by agreeing to merge Hulu Live with Fubo and giving the latter a cash payment of $220 million plus a $145 million loan.

“Defendants cannot purchase their way out of the antitrust violations,” DIRECTV said in a letter to U.S. District Court Judge Margaret Garnett. “DIRECTV continues to evaluate its options with respect to the joint venture, the parties’ settlement, Defendants’ tying practices, and other anticompetitive harms, and it joins EchoStar (Dish’s corporate owner) in requesting that the Court reject any effort by the Defendants to vacate any prior rulings or findings in this case.”

It’s unclear if DIRECTV and/or Dish will file their own lawsuit against Disney and Venu. But it’s clear to me why they are opposing the launch of the sports streamer and the Hulu Live-Fubo deal.

A Hulu Live-Fubo service, which must first be approved by federal regulators, would be a potent player in the live streaming category. Under Fubo’s management, and backed by Disney, and supported by Fox and Warner Bros. Discovery, Hulu-Fubo could secure favorable programming deals for sports channels carried by all three Venu owners.

That could mean Fubo could offer sports-specific plans (all sports channels in one package) as well as other attractive packages that current live streamers are prevented to provide under their carriage pacts with the three Venu owners. As part of that sports-first offering, Fubo/Hulu would offer the Venu plan as well.

DIRECTV owns DIRECTV Stream and Dish has Sling TV. Both live streamers could be at a competitive disadvantage if Fubo/Hulu assemble a truly sports-first service with the well-heeled Disney corporation as a 70 percent owner.

So you can see why DIRECTV and Dish are a bit nervous about the future of their live streaming services and will do what they can to block Venu and Hulu Live/Fubo.

David, hope that helps. Happy viewing and stay safe!

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The TV Answer Man is veteran journalist Phillip Swann who has covered television for more than three decades. He will report on the latest news and answer your questions regarding new devices and services that are changing the way you watch television. See the bio for Phillip Swann here.