Best Buy Q3 Entertainment Revenue Growth Slows

What a difference a pandemic makes.

Best Buy Nov. 23 reported third-quarter (ended Oct. 30) comparable domestic store entertainment revenue of $549.2 million, which included a $22.5 million increase in same-store sales. That was down from a same-store sales increase of $95 million on revenue of $542.5 million in the previous-year period. The segment result, which includes products such as DVD/Blu-ray Disc movies, video game hardware and software, books, music CDs and computer software, underscores the impact prior-year stay-at-home mandates had on the consumption of home entertainment.

Indeed, e-commerce revenue dropped more than 10% to $3.44 billion. As a percentage of total domestic revenue, online revenue decreased to approximately 31.3% of Best Buy’s $10.98 billion in revenue, compared with 35.2% of $10.85 billion in revenue last year.

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CEO Corie Barry said that despite customers returning to stores, digital sales in the quarter were still more than double pre-pandemic levels, and phone, chat and in-home sales continued to grow. She said the consumer electronics retail giant remains well positioned to sell and deliver products in the current business environment and in the future.

“During the third quarter, we reached our fastest small-package online shipping times ever as our same-day delivery was up 400% and we nearly doubled the percent of products delivered within one day compared to last year,” Barry said in a statement.

CFO Matt Bilunis said the retailer has perfected delivering CE products however the consumer wants them.

“We are committed to driving initiatives that will deliver future growth and our Q4 outlook reflects continued investments in our new membership program, technology, advertising and our health strategy,” Bilunis said.

FuboTV Tops 1 Million Subscribers, Acquires French Online TV Service Molotov SAS

Online TV streaming platform FuboTV Nov. 9 announced it reached 1 million paid subscribers through the third quarter (ended Sept. 30), since launching in 2015. The service ended the previous-year period with 288,000 paid subs.

New York City-based FuboTV also announced it is acquiring French-based online TV service Molotov SAS.

The company upped total revenue 156% to $156.7 million, with advertising revenue up 147% to $18.6 million from the previous-year period. Net loss increased 61% to $106 million, from $56 million last year.

Viewership hours reached a record high of 284 million hours, up 113% year-over-year. The platform added 262,884 net subscribers during the quarter.

FuboTV is eyeing future growth on the 76 million existing pay-TV subscribers who continue their bundle agreements largely for live sports access.

With the September launch on Vizio’s SmartCast platform, FuboTV is now available on all major CTV platforms. These include Android TV, Apple TV, FireTV, Hisense Smart TVs (with the Vidaa operating system), LG Smart TV, Roku, Samsung Smart TV and Xbox One, in addition to Vizio SmartCast.

“The record third-quarter 2021 results again showcase consistent strong execution in support of our company mission and continued traction towards our long-term growth and margin targets,” co-founder/CEO David Gandler said in a statement.

Edgar Bronfman Jr., executive chairman of FuboTV, said the subscriber milestone represents “an exciting inflection point” in the business, with “tremendous” implications for revenue growth and profitability, particularly given the continued strength of the advertising business.

“There is so much more to come as we track towards defining a new category of interactive sports and entertainment television,” Bronfman said.