Key Highlights from Q4 2024
1. Subscriber Growth & Revenue Trends
Fubo ended 2024 with 1.7 million paid subscribers in North America, marking an increase from 1.6 million in 2023.
International subscriber count declined from 406,000 to 362,000, reflecting challenges in the global market.
Average Revenue Per User (ARPU) in North America rose to $85.97, up from $82.25 in 2023, driven by price increases and add-ons.
Advertising revenue, however, remained stagnant at ~$115 million, indicating potential struggles in monetization.
2. Business Combination with Hulu
On January 6, 2025, Fubo announced a strategic business combination with Hulu (Disney-owned).
Under the deal, Hulu will contribute its live TV assets into a new entity (Newco), with Hulu owning 70% and Fubo holding 30%.
Hulu will maintain 70% voting control, giving it significant influence over Fubo’s future operations.
The deal is pending shareholder approval and regulatory clearance, with a potential $50 million termination fee if Fubo backs out.
3. Financial Performance & Profitability Focus
Fubo reported a net loss of $172 million in 2024, an improvement from $287 million in 2023.
Sales & marketing expenses declined from 15.1% to 12.5% of revenue, showcasing efforts to optimize spending.
Content costs remain a challenge, but the company is focusing on cost control and profitability.
4. Regulatory & Competitive Risks
The Hulu deal could face antitrust scrutiny, potentially delaying or derailing the agreement.
Fubo remains in a competitive landscape, facing challenges from YouTube TV, Sling, and traditional Pay TV services.
Legal risks persist, as Fubo recently settled privacy-related lawsuits but could face future liabilities.
What to Expect in 2025
Hulu Partnership Execution: If approved, the deal will give Fubo access to Hulu’s subscriber data, advertising business, and content agreements, potentially transforming its revenue model.
Advertising Expansion: With flat ad revenue in Q4, Fubo will focus on direct sales, ad tech investments, and targeted advertising to drive monetization.
Cost Optimization & Profitability: Continued focus on controlling content costs and reducing operational expenses will be crucial.
Market & Regulatory Challenges: Investors should watch for updates on the Hulu merger approval process and monitor competition from established streaming platforms.
Investor Takeaway
Fubo is making progress in subscriber growth and ARPU expansion, but its advertising revenue remains a challenge. The Hulu deal is a potential game-changer, offering access to better content and data insights. However, regulatory and competitive risks still loom.
For investors, 2025 will be a crucial year to see whether Fubo can execute its Hulu partnership effectively and drive long-term profitability.