Fubo's Content Strategy: Can Niche Sports Keep Subscribers?

Key Points

• Fubo's big story today is the plan for it to take over Disney's Hulu+ business.

• Fubo's strategy is to fill a niche in the streaming industry, leaning heavily on sports content.

• Fubo is bleeding subscribers ahead of the closing of the Hulu+ deal, but it isn't the only business that's struggling.

• 10 stocks we like better than fuboTV ›

Fubo (NYSE: FUBO) was something of an also-ran in the streaming wars. While major content creators ramped up their own direct-to-customer operations, Fubo offered a bundle service that didn't quite wow anyone. The proof of that is in the fact that Fubo's subscriber numbers are well below those of other bundled services, like Disney's (NYSE: DIS) Hulu+. Hulu+ is an important reference point here, as Fubo is about to take it over. There's a lot to unpack.

What does Fubo offer customers?

Fubo aggregates content and streams it over the internet to customers, who pay a subscription fee for its service. The company highlights sports as a key feature, which is notable because live sports is a big draw for viewers. In fact, live sports is one of the content offerings that has long propped up cable services, even as other forms of content migrated to streaming. However, that has started to change, with live sports increasingly being streamed.

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The industry giant, Disney's ESPN, launched its own flagship streaming service in August 2025. FuboTV is basically competing with content providers that have much more industry recognition. That said, media giant Disney is in the process of selling its Hulu+ streaming service to Fubo, a deal that will leave Disney with a 70% ownership interest in Fubo. The FuboTV and Hulu+ services are expected to be operated independently, at least at first.

This is good and bad for FuboTV. Fubo will now start licensing content from Disney. A key line in the news release announcing the deal explains: "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+." So FuboTV's content will be expanded, but it has to pay Disney for that content. It may become something of a vassal to Disney.

Here's the bigger question: If customers can get the content directly from Disney, why would they want to pay for FuboTV? There could be other content that FuboTV offers that is a huge draw, but the numbers don't really suggest that that's the case.

How has Fubo been doing?

When Fubo merges with Hulu+, the combined subscriber count will skyrocket. At the time the transaction was announced, the expected subscriber total between the two streaming services was listed as 6.2 million in North America. But most of that will come from Hulu+, since FuboTV's North American subscriber base was just 1.7 million or so at the start of 2025.

That's where the problems start to show up. FuboTV's subscriber base declined in both the first quarter and second quarter of 2025. It is now down to around 1.4 million, a decline of nearly 20% in just six months. The company announced that the subscriber numbers were above its target, but that doesn't make the numbers good. This is a worrying sign leading into a merger that will likely be pivotal to Fubo's future as a business.

There's a very big problem that investors need to consider. If Fubo isn't resonating with consumers as a stand-alone operation, even as it expands its sports coverage, how is the company going to perform when it takes on Hulu's operations? The bleeding could simply continue.

Here's the interesting thing: The Hulu+ live service that Fubo is getting is also losing customers. Subscriptions fell from 4.6 million at the end of 2024 to 4.3 million in June 2025. Basically, the Fubo/Hulu transaction is bringing together two businesses that look like they are struggling to compete. Sports or no sports, it seems like FuboTV's future is filled with risk for investors.

It could work out well, or it could just get worse

To be fair, Disney is exiting the Hulu business. The live operation is going to FuboTV, and the rest is getting merged into Disney's own branded streaming service. So, maybe, Hulu+ isn't getting the attention it needs, and it will be a huge opportunity for FuboTV when the deal is completed.

But given the subscriber trends in FuboTV's own business, it seems like investors should tread on the side of caution here. A bet on live sports hasn't been enough so far. Until FuboTV turns the subscriber trends around at its own service -- and, soon, the Hulu service -- investors will probably be better off watching this investment from the safety of their couches.

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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney and fuboTV. The Motley Fool has a disclosure policy.