Fubo TV is experiencing a mixed bag of results, growing its subscriber base and revenue while still struggling with significant financial losses. The broadcast streaming service reported a roughly four percent increase in subscribers and an eight percent rise in quarterly revenue year-over-year in Q4 2024. However, the company continues to operate at a loss, albeit a smaller one than before. This comes as a proposed merger with Hulu + Live TV, orchestrated by Disney, looms on the horizon.
The streaming service ended Q4 with 1.676 million paid subscribers, a jump from 1.61 million in Q3 and 1.45 million in Q2, indicating a positive trend in customer acquisition. Revenue has also seen substantial growth, reaching nearly $1.59 billion for the year (up 19 percent from 2023) and $433.8 million for the quarter (up eight percent from Q4 2023).
Financial Challenges Persist
Despite the growth in subscribers and revenue, Fubo remains in the red. The company reported a net loss of nearly $178 million for the year. However, there's a silver lining: Fubo improved its losses by over $115 million compared to the previous year. This suggests that while profitability remains a challenge, the company is moving in the right direction.
“We're seeing some positive signs," said a company spokesperson. "Our focus remains on delivering a compelling entertainment experience while carefully managing our expenses."
Disney Merger and Content Gaps
The future holds significant changes for Fubo. Pending shareholder and regulatory approval, Disney is poised to acquire a 70 percent stake in the company and merge it with Hulu + Live TV. This deal would establish a new entity to oversee both brands, with plans to initially maintain them as separate services.
However, Fubo faces challenges in its content offerings. Notably, the service lacks Warner Bros. Discovery content, meaning subscribers miss out on NBA games (before TNT's deal with the league expires) and MLB games on TBS. This absence weakens its position as a comprehensive sports streaming platform. Interestingly, according to a recent report, Warner Bros. Discovery is facing its own challenges. Seaport Res Ptn analysts have lowered their Q1 2025 earnings per share estimates for Warner Bros. Discovery, forecasting a loss of ($0.27) per share.
Warner Bros. Discovery CEO David Zaslav has stated that ending the NBA TV deal was a "great decision" for the company, with plans to reinvest in other franchises. This decision has been met with mixed reactions, especially considering the recent difficulties experienced by the NBA All-Star Game, which underwent a drastic format change met with harsh criticism. The shift highlights the importance of personal branding and staying true to what audiences expect.
Rising Prices and Competition
Adding to its challenges, Fubo has recently increased its prices, with the cheapest plan now costing $85, slightly higher than YouTube TV. This price hike positions Fubo as an increasingly expensive option in the competitive live streaming TV market, mirroring the rising costs associated with traditional cable services.
Like traditional cable, live streaming TV is becoming an expensive hot mess. It remains to be seen if Fubo can navigate these challenges and maintain its growth trajectory amidst increasing competition and evolving consumer preferences.
