fuboTV (NYSE:FUBO) Q1 2026 Earnings call February 03, 2026 08:30 AM ET Company ParticipantsAmeet Patel - Head of Investor RelationsClark Lampen - Managing DirectorDavid Gandler - CEOConference Call ParticipantsBrent Pinter - AnalystDavid Joyce - Senior Equity Analyst and Media SectorDoug Arthur - Managing Director and Senior Research AnalystLaura Martin - Senior Entertainment and Internet AnalystPatrick Sholl - Research AnalystOperatorHello and thank you for standing by. My name is Tiffany and I will be you ...

fuboTV (NYSE:FUBO) Q1 2026 Earnings call February 03, 2026 08:30 AM ET Speaker2Hello and thank you for standing by. My name is Tiffany and I will be your conference operator today. At this time I would like to welcome everyone to the Fubo first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session. If you would like to ask a question during that time simply press star then the number one on your ...

Group 1 - Cineverse has announced that Hulu has acquired the streaming rights to "The Toxic Avenger," with the premiere set for January 8, 2026 [1][2] - The film has received an 86% score on Rotten Tomatoes, indicating strong critical acclaim and positive audience reception [1][2] - "The Toxic Avenger" features a notable cast including Peter Dinklage, Kevin Bacon, Elijah Wood, Jacob Tremblay, and Taylour Paige, and is directed by Macon Blair [2][3] Group 2 - The film's campaign has contributed to eliminating over $15 million in medical debt for more than 10,000 individuals through collaboration with Undue Medical Debt [2] - Cineverse is positioned as a next-generation entertainment studio, distributing over 71,000 films, series, and podcasts, and focusing on innovative storytelling and technology [5] - The film is based on the "THE TOXIC AVENGER" franchise created by Lloyd Kaufman and is produced by Legendary Entertainment [3][4]

Core Viewpoint - The potential acquisition of Warner Bros. by Netflix raises concerns about antitrust implications, with debates on how to define Netflix's competitive landscape and its market power in the streaming industry [1][4][5]. Market Competition - Netflix argues that its market share would only increase from 8% to 9% in the US after acquiring Warner Bros., still trailing behind YouTube (13%) and a potential Paramount/WBD combination (14%) [3][6]. - Antitrust regulators may define the streaming market narrowly, treating it as a distinct competitive arena separate from traditional television and social video platforms [4][9]. - The combination of Netflix and HBO Max would account for 39% of paid subscription streaming revenue in 2025, which could attract regulatory scrutiny due to historical concerns over firms with 30% to 40% market share [6][7]. Consumer Behavior and Market Dynamics - Consumers may not view social media platforms as direct substitutes for paid streaming services, which could influence regulatory perspectives on the merger [7][10]. - In October, Netflix and HBO Max together accounted for just over 20% of US streaming minutes, indicating significant but not overwhelming market power from an antitrust viewpoint [11][12]. - Netflix's viewership share ranks sixth among TV media distributors, indicating that it competes against a broader landscape that includes traditional cable and broadcast TV [12]. Broader Competitive Landscape - Industry insiders express skepticism about including social media and video games in the competitive landscape for Netflix, suggesting that consumers primarily associate paid streamers with traditional media [13][14]. - Analysts note that while Netflix leads in long-form video, competitors may have stronger offerings in sports and short-form content, reflecting a shift in consumer attention [16].

Summary of Optimum Communications Conference Call Company Overview - **Company**: Optimum Communications - **Industry**: Telecommunications Key Points and Arguments 2026 Priorities - The company is focused on stabilizing broadband as its first priority, which includes enhancing base management and leveraging AI and automation for better customer communication and service delivery [4][5] - Elevating customer experience and operational efficiency through AI investments is a significant focus area [6] - Continued investment in network infrastructure, including mid-splits and expanding fiber capabilities, is planned [6][7] - A major priority is to optimize the capital structure for sustainable long-term growth [7] Competitive Landscape - The competitive environment has intensified, particularly in Q4, with aggressive pricing strategies from competitors, including offers for gigabit services below $40 and various promotional incentives [13][14] - The company is testing new pricing and packaging strategies to stabilize broadband performance [14] - The macroeconomic environment is affecting customer mobility, with many consumers hesitant to move due to attractive mortgage rates [18] Financial Structure and Debt Management - Recent financing from JPMorgan has provided financial flexibility and a leverage-neutral position [10] - The company is focused on meaningful debt reduction and resetting its balance sheet to support long-term objectives [11][23] - The potential use of Asset-Backed Securities (ABS) for funding is being explored [12] Fiber Deployment and Market Position - The company has made progress in fiber deployment, with 3 million passings and 700,000 customers on its fiber network [26][34] - The focus is on driving fiber growth while managing capital constraints [22][23] - Improved Net Promoter Score (NPS) and reduced churn rates are observed in fiber markets [26] Mobile and Video Products - Mobile penetration is currently at 7%, with expectations for growth as the product matures [29][34] - The new video packages have achieved a 13% penetration rate, offering customers flexibility and choice [41][42] - Partnerships with streaming services like Netflix and Disney are enhancing the video offering [42] Operational Efficiency and Cost Management - The company has implemented a 5% workforce reduction aimed at improving efficiency without impacting frontline staff [56] - Significant reductions in call volume and service visits have been achieved, contributing to operational efficiency [56] Future Outlook - The company expects to see year-over-year EBITDA growth for the first time in 16 quarters, with a guidance of $3.3 to $3.4 billion for Q4 [55][56] - Continued focus on leveraging AI and automation to enhance customer experience and operational efficiency is planned [59] - The company remains open to value-accretive transactions but is primarily focused on its transformation efforts [60] Lightpath Opportunity - The Lightpath segment is expected to generate over $100 million in sales, with ongoing efforts to expand its footprint beyond the current service areas [48][50] - The team is actively pursuing new business opportunities in various locations, indicating a strong growth potential [50] Additional Important Insights - The company is committed to advocating for customer interests in negotiations with programming partners to manage video costs effectively [42] - The overall strategy emphasizes quality and value, aiming to simplify customer interactions and enhance service delivery through digital and automated solutions [46][47]

Core Insights - The company is shifting from building its own AI models to leveraging existing infrastructure and capabilities provided by Amazon, indicating a trend towards utilizing out-of-the-box solutions rather than in-house development [6][5][4] - The focus is on enhancing personalized content delivery, which is crucial for competing in the entertainment space against platforms like Netflix and social media [12][13] - The company has integrated AI into its operations, including a new AI-based recipe search feature, showcasing its commitment to improving user experience through technology [7][8] Company Strategy - The company has historically trained its own models but is now increasingly relying on Amazon's capabilities, particularly for generative use cases [5][6] - There is an emphasis on building a robust data infrastructure to support real-time content recognition and availability, which is seen as a significant challenge moving forward [14][15] - The company aims to enhance its personalization efforts to better compete for consumer attention in a crowded entertainment market [12][13] Technology Integration - The integration with Amazon Alexa is part of the company's strategy to enhance content delivery and user engagement [10] - AI tools are being utilized to improve productivity, although the impact on workforce roles has been limited outside of tech [9] - The company is exploring various AI applications internally and externally, indicating a broad commitment to technology-driven innovation [6][7]

Core Points - Disney Channel is no longer available on YouTube TV due to the expiration of their carriage deal, affecting YouTube TV's 10 million subscribers who can no longer access Disney's channels including ABC and ESPN [1][2] - The negotiation between Disney and YouTube revolves around compensation and the integration of Disney's streaming content into YouTube's platform, with Disney accusing Google of using its market dominance to undermine industry standards [2] - YouTube has countered that Disney is using the threat of a blackout as a negotiation tactic and has offered subscribers $20 if Disney's content remains unavailable for an extended period [2] - YouTube TV's subscriber base of 10 million gives it a strong negotiating position, being more than double that of Hulu with live TV and nearly comparable to DirecTV and Charter [3] - The urgency to resolve the negotiation is heightened as YouTube TV subscribers risk missing major sports events, including NFL, NBA, and college football games [3]

Core Insights - Fubo and Hulu Live TV have officially merged, creating a significant player in the streaming market with nearly 6 million subscribers, making it the sixth-largest Pay TV provider in the U.S. [1][2] - The merger has received clearance from the Justice Department's Antitrust Division, allowing the companies to proceed without regulatory hurdles [3]. - The integration of Fubo's sports offerings with Hulu's entertainment library will provide access to over 55,000 live sporting events annually, enhancing the value proposition for subscribers [4]. Company Structure and Financials - Disney will hold approximately a 70% interest in the newly combined entity, while existing Fubo shareholders will retain around 30% [6]. - The combined company will have access to a $145 million term loan from Disney, which is part of the transaction agreement [6]. Market Impact and Offerings - The merger reduces the number of independent streaming players, intensifying competition in the market, particularly against YouTube TV, which has around 10 million subscribers [2][3]. - The new entity plans to offer flexible subscription options, including smaller "skinny" bundles and more comprehensive packages, while maintaining separate access to both platforms [5].

Industry Trends - Traditional US TV programming budgets and interest are shrinking, while episodic vertical video consumption is exploding [1] - Micro dramas or vertical dramas are breathing new life into the content world, offering 1 to 2 minute clips with intense cliffhangers accessible on smartphones [2] - These micro dramas capture viewers who are on the go and desire something more substantial than doom scrolling on social media [3] - Short-form video platforms like TikTok and Reels, along with the changing attention economy, are interconnecting with the rise of vertical dramas [4] Market Size and Growth - In China, the micro drama industry made $6.9 billion (十亿) in revenue in 2024, surpassing the country's entire box office sales [4] - Analysts predict the US vertical streaming industry will surpass $4 billion (十亿) in revenue in 2025 [4] Strategic Implications - Brands like Telemundo are entering the vertical drama space to capture audience attention wherever they are [5] - Streaming platforms like Netflix and Hulu should embrace vertical dramas to avoid becoming obsolete [6] - Vertical dramas offer a cost-effective way for creators to tell stories, costing a fraction of feature-length films and TV shows to produce [7] - Creators can potentially make $40,000 (千) a month in the vertical drama space [7]

Core Insights - An unprecedented outage at Amazon Web Services (AWS) caused nearly 150 major sites and applications to go offline, attributed to a common technical glitch related to the Domain Name System (DNS) [1][4][5] - The outage lasted for 15 hours and affected significant platforms such as Snapchat, Venmo, Slack, Zoom, and Fortnite, highlighting the extensive reliance on AWS for cloud services [5][8] Group 1: Outage Details - The outage originated from an error in the DNS at Amazon's Virginia data center, which is the oldest and largest facility in the region [2][4] - As of 2023, data centers in Virginia consume a quarter of the state's available electricity, indicating the scale of operations in the area [2] - AWS reported that all impacted services were restored by 6 p.m. ET on the same day [5][10] Group 2: Industry Context - This incident is one of the most substantial outages for a cloud provider, as AWS serves millions of businesses, with only Microsoft Azure and Google Cloud operating on a similar scale [8] - Previous DNS outages have affected other providers, including Microsoft Azure and Akamai Edge, indicating that such incidents are not isolated to AWS [11]