fuboTV(US:FUBO)2023-01-04 22:52Summary of FuboTV Conference Call Company Overview - Company: FuboTV, Inc. (NYSE:FUBO) - Event: Citi's 2023 Communications, Media & Entertainment Conference Call - Date: January 4, 2023 - Participants: - David Gandler - Chief Executive Officer - John Janedis - Chief Financial Officer Key Points Industry Positioning and Competition - FuboTV is positioned as a leading sports platform with over 50,000 sporting events available, differentiating itself through brand recognition, product differentiation, and customer satisfaction [3][4] - The company emphasizes its unique features such as 4K streaming, perpetual DVR, and Multiview, which enhance user experience [3][4] - FuboTV has secured a deal with Sinclair, providing access to a significant number of local sports networks, further strengthening its competitive edge [4] Technology and Future Developments - FuboTV is focused on its proprietary technology stack and plans to release a 3.0 version of its service, initially testing in France [7] - The company aims to address issues of content discovery and customer churn in the streaming space, positioning itself as a solution provider [7][8] Advertising Strategy - FuboTV is transitioning to a model that allows for infinite ad inventory, which is expected to increase advertising revenue per user (ARPU) to over $15, compared to traditional cable's $8 to $10 range [14][15] - The company has invested heavily in its advertising technology and sales team, doubling the sales force to enhance direct sales capabilities [16][19] - FuboTV's advertising strategy includes leveraging programmatic advertising and self-serve platforms for local advertisers, which is anticipated to improve fill rates and overall CPMs [15][16][18] Macroeconomic Outlook - The management expressed cautious optimism regarding macroeconomic conditions, noting that their subscriber base, primarily sports enthusiasts, tends to hold steady during economic downturns [26][27] - The company has not observed significant cancellations, indicating resilience in its subscriber base despite broader economic concerns [27] Subscriber Growth and Pricing Power - FuboTV has seen a strong uptake in premium plans, with nearly half of new subscribers opting for higher-tier packages, indicating effective pricing power [46][49] - The company has successfully raised prices from $6.99 in 2015 to upwards of $65, reflecting its ability to provide value through sports content [49] Gaming Aspirations - FuboTV initially aimed to expand into online gaming but has since retrenched due to changing macroeconomic conditions and a focus on profitability [35][36] - The company retains proprietary technology that may allow future partnerships in the gaming space, targeting sports-centric audiences [38] Financial Goals and Free Cash Flow - FuboTV aims to achieve free cash flow breakeven by 2025, with a focus on maintaining a sustainable cost structure [62][63] - The management is confident in their ability to meet long-term financial targets despite potential short-term volatility [61] Conclusion - FuboTV is strategically positioned in the competitive streaming landscape, leveraging its sports-centric model, advanced technology, and advertising capabilities to drive growth and profitability. The company remains focused on enhancing user experience and maintaining a strong subscriber base amidst economic uncertainties.