FuboTV, the sports-first virtual MVPD, hit a major milestone in 2022, reaching $1 billion in global annual revenue for the first time. Despite raising prices and tacking on extra fees, FuboTV executives reported encouraging early churn trends, and they rebuffed concerns over increased sports competition from fellow vMVPD YouTube TV. In North America, FuboTV saw streaming revenue climb 55% year over year to $984 million for 2022, with Q4 subscription revenue of $278 million, up 36% year over year. FuboTV ended the period with 1.44 million subscribers in North America and an average revenue per user of $75.20 in Q4. In this article, we will explore how FuboTV achieved this growth and what lies ahead for the virtual MVPD.
FuboTV, which offers a sports-first focused TV lineup, competes with cable and other vMVPDs such as YouTube TV, Hulu with Live TV, and Sling TV. The virtual MVPD has been aggressive in acquiring sports programming, making it a popular choice for sports fans. FuboTV offers more than 35 regional sports networks, including at least one available to every U.S. subscriber. In addition to offering sports programming, FuboTV has expanded its offerings to include news, entertainment, and movies.
In North America, FuboTV recorded $100 million in advertising revenue, and Q4 ad revenue in the region was up 30% year over year to $33.6 million. FuboTV’s success in advertising revenue can be attributed to its targeted ads, which allow advertisers to reach specific audiences. FuboTV’s audience is primarily sports fans, which makes it an attractive platform for advertisers looking to reach this demographic.
FuboTV’s success in reaching $1 billion in global annual revenue for the first time is a testament to its strategy of focusing on sports programming. According to FuboTV CEO and co-founder David Gandler, users are spending an average of more than 100 hours per month on the streaming TV’s platform, and the company is feeling confident about further growth. Gandler noted that there are still over 60 million households in the U.S. that have cable, and FuboTV is pulling customers from that pool.
FuboTV’s success in the streaming market has not gone unnoticed, and it faces competition from other vMVPDs such as YouTube TV. However, FuboTV leadership is not concerned about YouTube TV’s recent acquisition of the NFL Sunday Ticket package. FuboTV has focused on acquiring regional sports networks, which Gandler notes has a significantly larger total addressable market than the Sunday Ticket package.
FuboTV’s leadership is optimistic about its future growth, and the company anticipates maintaining double-digit subscriber growth in 2023. FuboTV expects to end 2023 with between 1.51 and 1.53 million North American subscribers, up from 1.44 million at the end of 2022. The company has set its target of 2 million subscribers in 2025 and plans to reach profitability by that year.
In conclusion, FuboTV’s success in the streaming market is a testament to its strategy of focusing on sports programming. The virtual MVPD has recorded impressive growth in revenue and subscribers, and it faces competition from other vMVPDs such as YouTube TV. FuboTV leadership is optimistic about its future growth, and the company anticipates maintaining double-digit subscriber growth in 2023. FuboTV’s success in advertising revenue can be attributed to its targeted ads, which allow advertisers to reach specific audiences. Overall, FuboTV’s future looks bright, and it will be interesting to see how it continues to compete in the crowded streaming market