Hey Global Investor, here’s what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Wednesday Close) 3,690.01 +2.75 (0.075%)
NASDAQ (Wednesday Close) 12,771.11 −36.80 (0.29%)
FTSE 100 (5 PM IST) 6487.36 -8.39 (0.12%)
NIFTY 50 (Today’s Close) 13,749.25 +148.15 (1.09%)
USDINR (5 PM IST) 73.69 (1 Year +3.59%)
Where Is Live TV?
In a world where cable TV is giving way to streaming services, there’s place for players that offer live content – be it sports, TV shows, or news. FuboTV has made some rapid strides as it stakes claim as the first among equals in this space.
Background: Content streaming has become a thorn in the flesh for traditional cable TV. A number of streaming services have been gnawing at cable TV’s market share. Think Netflix, Hulu, Amazon Prime, and Disney+. The voracious appetite for streamed content of a population confined to their homes during the pandemic means subscribers are more prone to cut-the-cable-cord permanently.
However, consumers still want to watch live channels, live TV shows, and live sports, which the streaming giants do not offer. And in this niche, as the elephants jostle, the proverbial mouse thrives.
What is Happening? FuboTV was launched in 2015 as a football streaming service, and morphed into an all-sports service two years later. It is a virtual multichannel video programming distributor (vMVPD) that has emerged as the most popular platform in the live TV streaming market.
At $65 per month, FuboTV subscribers get to watch 113 channels, including all live sports and news. In comparison, YouTube TV offers 85 channels for the same price, and Hulu offers 45 odd channels for $55.
In Q3, FuboTV reported 455,000 paying subscribers (up 58%), and revenue per user rose 14% on a Y-o-Y basis. FuboTV’s share in the streaming market has more than doubled in the last two years to around 5% today. The stock recently surged from $5 to $62 on the back of investors’ optimism about the cut-the-cord movement. Are those gains justified if subscriber numbers drop-off after the Super Bowl? What about the 84M FuboTV shares that become available for sale after lock-up expires on December 30th?
Market Reaction: These concerns were enough to drag Fubo’s shares down 15.18% on Wednesday to $52.59. The share price is up 3.27% today, before-hours.
Company Snapshot 📈
FUBO $52.59 -9.41 (-15.18%)
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- Interesting: Square interested in buying music-streaming service Tidal from Jay-Z: report (SQ -4.51%)
Later Today 🕒
- Carnival Corp Earnings (CCL)
- Before Market Open: Granite Construction Inc (GVA)
- Before Market Open: SINA Corp (SINA)
Fun Fact of The Day 🌞
Traditionally, children leave mince pies and brandy for Santa, and a carrot for the reindeer