Let’s get one thing straight – most households will only subscribe to one streaming Live TV service, if any. That’s an assumption I feel very strongly about.
fuboTV is unfortunately undifferentiated from its competitors and has no proprietary content.
- We dissected the streaming industry in a Making Cents post (join ROIC for access!), and the future of streaming relies on content. Content is king.
- fuboTV has no proprietary content nor the resources to produce it. It merely buys live TV content from companies like Fox, CBS, and NBC and distributes it.
- Without compelling proprietary content, fuboTV will have mostly the same channels and will never have pricing power compared with its competitors like YouTube TV, Hulu, and AT&T TV.
- If you’re still unsure about how insignificant they still are with content, just remember Turner, owned by $T, left fuboTV last year. That means fuboTV subscribers don’t have TNT, TBS, CNN, Cartoon Network, and some live sports content.
fuboTV will probably continue to grow quickly, benefitting from its sports niche and an overall streaming market that’s growing.
- fuboTV’s “competitive advantage” is that it carries some regional, international, and niche sports channels, although the main sports channels are carried by all of the main competitors.
- These are the channels that YouTube, Hulu, and AT&T aren’t bothering with because they’re insignificant for the majority of the population. They could pick these channels up in a heartbeat if they wanted to.
- I see no reason why fuboTV can’t quintuple subscribers over the next 5 years to 2.75 million subscribers.
- That’s not a lot to believe, as Graham Stephan’s personal finance YouTube channel has 2.36 million. Shameless plug to subscribe to our YouTube channel if you haven’t already!
But it’s important to remember that fuboTV is NOT Roku or Peloton.
- Comparing fuboTV to Roku or Peloton shows a lack of understanding of the business strategy dynamics.
Read the rest of the analysis here, where I address subscription margins, advertising revenues, the sports betting opportunity, valuation, and if I like the stock. Join ROIC to read it! It really helps support the content and helps our equity research community achieve scale! 🙂