FuboTV surpasses subscriber growth target
FuboTV’s Q1 financials surpassed expected subscriber growth but also expanded net losses amid growing operating expenses. The virtual MVPD has now reached 590,430 subscribers, up 105% YoY and 8% over the previous quarter, after adding 43,000 new customers. The growth led FuboTV to expand its original year-end forecast to 830,000-850,000 subscribers, up from the 760,000-770,000 subscribers it previously estimated. However, subscriber and revenue growth has not yet translated into profits for fuboTV: the company reported a net loss of $70.2 million partly attributed to rising operating expenses.
The NPD Take:
- With sports-focused programming, FuboTV differentiates itself in a crowded marketplace. As such the service will likely succeed (or be acquired) in a market crowded with media giants like Google and Disney.
- Sports betting appears to be the magic bullet expected to off-set extremely high sports rights and turn losses into profits. The next year will tell all.
Roku to Launch Rebranded Quibi Originals This Month
Roku will debut all episodes of 30 previously released short form series on May 20. These originals including Die Hart, Free Rayshawn and Reno 911, previously aired last year on Quibi, which shut down last fall after launching six months earlier. Roku acquired Quibi’s 75-show library in January and rebranded it as Roku Originals in April. It has not been announced yet when Roku will premiere the remaining 45 Quibi originals, which include more than a dozen shows that were shot and completed but never released.
The NPD Take:
- Roku is solidifying its footprint with their new entry into scripted originals offering shows that most of their subscriber base have not yet seen. A key move to differentiate in a crowded AVOD arena.
- For hardware OEMs, the dream of growing through ad and services revenues is materializing.
Rotten Tomatoes Is Launching a Linear Streaming Channel
Rotten Tomatoes is expanding its entertainment footprint with the launch of The Rotten Tomatoes Channel, a new OTT streaming service that will initially debut on The Roku Channel. The OTT service will then come to Peacock and Xumo, with other distribution deals in the works including with internet pay-TV providers. The first 24-hour linear video channel from Rotten Tomatoes will loop about 100 hours of premium programming around the clock on the channel. Some of the shows on The Rotten Tomatoes Channel will include “Countdown,” a show discussing the best upcoming movies and shows; “The Vault,” a nostalgic look back at star interviews, red carpet chats and games; “Trailers Reloaded,” recapping the biggest movies and shows with an extensive collection of trailers; and “Rotten Tomatoes Essentials,” a look back at movies, shows, stars and directors that defined genres and eras.
The NPD Take:
- Streaming brought back the ability to launch targeted networks similar to how cable TV enabled the same back in the day.
- The Rotten Tomatoes brand expansion should help provide new entry-points into the entire Fandango ecosystem like movie tickets and rentals.