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A Trading Place
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fubofrom nothing to over 60 to nearly nothing. The problem is and has always been that it costs as much or slightly more to provide the service. Comparing it to roku, fubo has over twice the subscribers but what it doesn't have is a big bank acct in free cash flow as opposed to roku. Roku sells their widgets at a loss but more than makes up for it in service fees, ads and for their various channels and access to other streaming options. Fubo went into sports but the content providers have it set up on a per sub basis--the more, the better the prices for content. The problem w/ this is there are other options to sports available, like you tube for example but which is also having a hard time making money and Alphabet is about fed up w/ the losses as are others in the field. Fubo knew it had to do something, so it raised prices by $5.00 a head figuring the minor loss in sub numbers would be offset by the additional revenue coming into the company. Fairly risky as it opened the door for You tube and others to pick up their subs. Didn't happen. You tube also liked the increase so it raised it's pps as well. Long story shorter than it could have been--I bought a few fubo shrs last week to see what the next report looks like. I also bought a few shrs of geni along the same field because I wanted too and I can. |
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