fuboTV(US:FUBO)2021-06-07 16:31Summary of fuboTV Inc. Conference Call Company Overview - Company: fuboTV Inc. (NYSE:FUBO) - Participants: David Gandler (Co-Founder, CEO, and Director), Simone Nardi (CFO) - Event: Wells Fargo Virtual Media Telco Day: 5G & Streaming & Beyond, June 7, 2021 Key Industry Insights - Market Trends: The trend of cord-cutting continues, with increasing attrition rates in traditional cable and satellite services. fuboTV has gained market share, increasing from under 3% in 2019 to over 5.5% in Q1 2021 [7][8]. - Future Projections: The potential market for virtual MVPD customers is estimated to be between 45 million and 55 million over the next 7 to 10 years [8][53]. - Consumer Behavior: There is a growing fatigue among consumers regarding the number of streaming services, leading to a preference for larger bundles that offer a more efficient viewing experience [8][9]. Company Performance and Strategy - Growth and Guidance: fuboTV has consistently beaten and raised guidance since its NYSE listing, demonstrating strong performance despite being a relatively young company with about 285 employees [11]. - Revenue Streams: The company operates on a dual revenue model: subscription and advertising. Advertising revenue grew over 200% in Q1 2021, typically the weakest quarter for ad revenue [28][29]. - Profitability Focus: The goal is to achieve breakeven margins on the subscription side while expanding advertising revenue. The company has seen improvements in contribution margins over the past year [30][31]. Product Development and Innovation - Gaming Integration: fuboTV is focusing on integrating gaming into its platform, launching free-to-play games and predictive gaming features that enhance user engagement [12][17][20]. - Content Strategy: The company is cautious about exclusive content due to high costs but believes in the importance of aggregation and providing a comprehensive viewing experience [40][41]. Advertising Market Dynamics - Advertising Demand: There is a notable shift of advertising dollars from traditional television to connected devices, with fuboTV leveraging first-party data for targeted advertising [35][36]. - CPM Growth Potential: Current CPMs are in the low $20s, with potential to increase significantly as the subscriber base grows, aiming to reach CPMs similar to competitors like Roku [35][36]. Competitive Landscape - Market Positioning: fuboTV differentiates itself by offering a sports-first experience and is positioned to compete against larger companies in both video and gaming markets [31][25]. - Partnerships vs. Ownership: The company aims to own and control its sportsbook operations rather than partnering with existing sportsbooks, believing this will create more long-term shareholder value [25]. Challenges and Considerations - Content Costs: The rising costs of exclusive content pose a challenge, and the company is focused on balancing content acquisition with profitability [39][41]. - Churn Management: fuboTV is actively working on strategies to manage customer churn through product improvements and targeted marketing [15][16]. Conclusion - Future Outlook: The company is optimistic about its growth trajectory, driven by market trends favoring virtual MVPDs, innovative product offerings, and a strong focus on profitability and customer engagement [11][31][53].