August 8, 2022
FuboTV, the sports-themed online television service, is putting the brakes on its aggressive plans to enter online sports betting alone. The platform in November 2021 launched a branded Sportsbook, the first online TV streaming service app in the U.S.
Then came fiscal reality. Subscriber churn, which has seen FuboTV’s paid sub count fall below one million from 1.1 million subs at the end of 2021, coincided with reported scant consumer interest in the betting platform in Iowa and Arizona — two states that have approved use of the app.
“In light of a rapidly-evolving macro-economic environment, we believe it is important to be even more capital efficient than originally scoped,” co-founder/CEO David Gandler and CFO John Janedis wrote in the Aug. 4 shareholder letter. “We are taking steps to de-risk our business and have made the decision to no longer go down the wagering path independently.”
At the same time, FuboTV’s North American (U.S. and Canada) streaming business delivered double-digit year-over-year growth in total revenue (up 65% to $216.1 million), ad revenue (up 32% to $21.7 million) and paid subscribers (up 41% to 946,735) during the second quarter (ended June 30), compared with the previous-year period.
“We continue to believe that an integrated wagering platform, offering both live video and a sportsbook, will result in the best viewing and gaming experience for customers,” Gandler and Janedis wrote. “However, as we have evaluated how best to scale these capabilities in today’s market, we have concluded that we will no longer pursue this opportunity on our own.”