Michael A Robinson Blog | FuboTV Inc. Has Solved The Cord-Cutting Problem | Talkmarkets - Page 2
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Michael A. Robinson is a 34-year Silicon Valley veteran and one of the top technology financial analysts working today. His work as a consultant, senior advisor and board member for Silicon Valley venture capital firms has placed him at the center of several major tech innovations including ... more

FuboTV Inc. Has Solved The Cord-Cutting Problem

Date: Saturday, November 21, 2020 2:45 PM EST

Not only does FuboTV carry NFL, NBA, MLB, and NHL, you can also watch NASCAR, MLS, golf, tennis, boxing, MMA, college sports, and more for a total of over 50,000 live sporting events and 110 channels. That translates to subscribers watching over 120 hours per month and total content hour streamed up 83% year-over-year.

This all translates to revenue growth of 47% up to $61 million. Its two main revenue drivers, subscriptions and advertising, were up 64% and an astounding 153%. I am particularly excited about this growth in advertising as the shift to connected TV advertising is a 200+ billion market and moving quickly. They recently hired Diana Horowitz, who managed advertising at the New York Times, Scripps Networks, Comcast (CMCSA), and IBM and should help to continue this growth.

While these numbers are impressive, FuboTV is just getting stated. At the end of quarter, paid subscribers totaled 455,000, 58% higher than a year ago at 288,000. This shows with how fast they are growing and how much potential there still is in a market with 100+ million potential customers. They expect to end next quarter with 500,000-510,000 customers and revenue of $80 to $85 million, an over 50% jump year-over-year.

While many businesses have slowed during the pandemic, FuboTV cut deals and continued to work on its product. It announced a multiyear distribution deal with Disney to bring ESPN to its service along with other Disney channels, started offering its service on Xbox, announced new agreements with Starz and Epix, and launched Fubo Sports Network on PlutoTV. This has all led to improved viewership hours.

As they continue to innovate and differentiate their product from traditional cable, they are expanding into new businesses with the major move of getting into the online sports wagering market, a multi-billion-dollar market on its own. Combining a sports betting service with live sports could end up being a home run given the audience they already have.

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