The launch of sports streamer Venu, "and potentially new packages from Fubo, appears to be an important strategic lever to cast a wider net and catch all potential subscribers," says one Disney analyst.

Disney will merge its Hulu + Live TV virtual MVPD with competitor Fubo, expanding its sports-focused distribution while settling a suit over skinny bundle Venu.

Today, Walt Disney Co. announced that it would be merging its Hulu + Live TV service with Fubo, another of the best cable alternatives out there. While billed as a merger, it seems that Disney has decided to acquire one of its competitors, as the new company formed by this merger will be 70% owned by the House of Mouse.