JumpTV, having failed to achieve profitability on its own after achieving scale through a number of acquistions is merging with well-funded set-top box manufacturer turned online video services company Neulion. It’s a deal that makes a lot of sense.

NeuLion, aided by the close ties of its CEO Nancy Li (her husband is Charles Wang, Computer Associates founder and now owner the New York Islanders) has signed a deal as the NHL’s online video provider, and has had some success in selling a set-top box solution for delivering niche content directly to the TV.

NeuLion is privately (and well) funded by the founders and other unnamed investors; unconfirmed reports say Sky Angel, the televangelist programming network which NeuLion partnered with to deliver IPTV services last year is a major funder.

JumpTV had been on the ropes, losing money at a rapid rate after purchasing a number high value streaming properties, most notably the Broadband Network division of XOS last year for $60 million.

But scale alone does not guarantee success in digital media and the company has been slow to integrate their worldwide properties and find a focus which could drive it toward profitability. Earlier this year the company announced they were exploring the sale of their in-house CDN to lower operating costs.

The combined entitry should be able to capitalize on NeuLion’s smart management, powerful backers, and the combined strength of both companies’ existing infrastructure and content partnerships to create a leaner and more efficient digital media leader.

A call is scheduled for 4PM Eastern today to discuss the deal.

Staci Kramer has a writeup of the NHL’s new player, original content and ad sales strategy. The NHL has been far more open with its content than other pro sports league, and they have needed to be since they have had a lot harder time getting their content on TV.

The addition of original content and improved sponsorship options signals the NHL’s focus on increasing revenue through ad-supported as opposed to subscription means. NeuLion which manages the NHL’s broadband initiative has historically focused on selling and delivering content to custom set-top boxes on a subscription basis, something they have not done so far for the NHL.