FUBO up 13% today on news that LG will pre-load the Fubo App on its TV’s Operating Systems
Interesting Discussion with CEO David Gandler
Some tidbits I found interesting
“We’ve gone from about just under 3% market share, in 2019, to over 5.5% market share in the first quarter of the year. We’re very confident that you could see anywhere between 45 million and 55 million virtual MVPD customers over the next seven to 10 years.”
On Sports betting and streaming " . . .this is really about products and creating a flywheel that allows to us create two funnels; one on the video side pushing people to our gaming or Sportsbook product, and then, one on the Sportsbook side that allows us to push people into video. So, ultimately our goal is to create one data platform that allows a video customer – allows us to be able to understand what a video customer is watching."
“In the same way that we tend to provide information to betting app from the video, think about the betting app providing information to the video meaning that you are a big better. You like to bet on LeBron James, because you think he is a great free throw shooter. All of a sudden when you launch your TV app, it may say to you here is a game – Lakers game that you can watch. So, understanding those dynamics I think allow us to better improve our personalization, our customization capabilities. And I think really develop an immersive experience that will probably be unlike other platforms at least in the near term.”
On Profitability and the Business Model:
"In terms of kind of on the profitability side, as you know, we’re a dual revenue stream business today, subscription and advertising. So I think in the earliest stage should think about us like Roku, where you have a hardware device, that is pretty much margin breakeven and then you have the ad supported business, which really drives Roku’s profitability. In our case, our job is to – our goal is to get to breakeven margins on the subscription side. And that’s done through a number of ways. And I’ll get to that in a second. And then you have the advertising side of our business, which continues to grow at a pretty significant pace. We grew our first quarter advertising revenue by over 200% and Q1 is typically the weakest quarter of the year for all businesses in ad space. So we think that you’ll see strength from Q2 through Q4, so those are kind of the two big buckets of revenue.
On the subscription side, we have two. So besides the base package, which I think you’re referring to, we also sell attachments and those attachments come in two ways, you have content attachments. So think RedZone, Sports Plus content attachments, like Showtime STARZ. And those all like the content attachments have a margin range of like 20% to 60% margin. But we also have something we call service attachments, which we highlighted in our earnings call, we sold 1.2 million and those attachments include things like DVR, which is a very interesting service. It’s very popular service that people like to record their content as well as a family plan. Both of those are close to that 95%, 97% gross margin. So as we continue to increase the number of service attachments, improve our advertising, ARPU that comes from more engagement, we think that profitability continues to expand. And we’ve demonstrated that last year, all four quarters, we said last January, we were going to improve our margins, or expand our contribution margin by about 150 basis points."
fuboTV Inc. (FUBO) CEO David Gandler Presents at Wells Fargo Virtual Media Telco Day: 5G & Streaming & Beyond (Transcript)