Fubo, co-founded in 2015 by David Gandler (the current CEO) as a sports-centric, internet-delivered TV bundle has been seeing a lot of action lately. In a short span of 5 years, they have made massive strides and their Q1 2020 earnings call does not disappoint one bit.
Highlights of the press release are :-
- Revenues for the 1st quarter 2020 were $51 million, a 78% increase compared to the first quarter of 2019, driven by growth in subscribers, subscription Average Revenue Per User (ARPU) and advertising sales.
- Subscription revenue in the first quarter increased 74% year over year to $46.4 million. That’s huge!
- Ad revenue in the 1st quarter increased 120% year over year to $4.1 million.
- The total number of hours streamed by fuboTV users (paid and free trial) in the first quarter increased 120% year over year to 107.2 million hours.
- Monthly Active Users (MAUs) watched 120 hours per month on average in the quarter, an increase of 52% year over year.
- Paid subscribers at the end of the 1st quarter equaled 287,316, an increase of 37% year over year.
- Average Revenue Per User (ARPU) per month was $54.16, an increase of 25% year over year.
In spite of the COVID-19 pandemic sweeping the world and decimating jobs and industries, fuboTV appears to be doing a fabulous job. Here is a quick re-cap of they have been up to in the last 3-4 months leading up to the earnings call.
- fuboTV merged with FaceBank Group in Mar-Apr 2020 to create a leading digital entertainment company, combining fuboTV’s direct-to-consumer live TV streaming platform for cord-cutters with FaceBank’s technology-driven IP in sports, movies and live performances.
- fuboTV and Disney Media signed a deal announcing that subscribers with the fubo Standard base package will have access to ABC, ABC News Live, Disney Channel, Disney Junior, Disney XD, Freeform, ESPN, ESPN2, ESPN3, in-market for SEC Network and ACC Network, FX, FXX, and National Geographic. Additional networks will also be available on fuboTV’s other packages including out-of-market for SEC Network and ACC Network, ESPNU, ESPNEWS, ESPN Deportes, FXM, Fox Life, Nat Geo Wild, Nat Geo Mundo, and BabyTV. The deal includes both live television and VOD. This is a home-run every which way you look at it.
- they secured over $20M of financing from Credit Suisse Capital LLC (details).
That is quite a lot in a year where the world is basically topsy-turvy.
In my opinion, the next few quarters will continue to look bright for fuboTV considering their strong position when it comes to a subscriber base that is willing to pay top dollar for the packages and purchase add-ons.
If you look at the revenue sources, the advertising revenue accounts for around 8% of the total which indicates that they have a strong and loyal customer base with a steadily increasing ARPU.
However, the one concern that I do have is the reliance of their brand on sporting events and with absolutely no sporting events taking place in either the NFL, NBA, MLB, etc due to to the COVID-19 pandemic, I am curious to see what they report in their Q2 and Q3 earnings calls.
It’ll be very interesting if they’d release analytics around the viewership focused on sports vs non-sports programming.
Secondly, if they continue to strike deals like they have with Disney Media, will they dilute their USP as a sports-streaming service and enter into direct competition with the likes of DirecTV or Sling?
Also, the launches of similar offerings like HBO Max and Peacock in this same time-period should lead to some interesting streaming wars.
One thing is for sure – with people stuck indoors and consuming more video, it’s clear that Content is truly king.
But, what content and to what demographic? That’s the key to success, isn’t it?