Why fuboTV? Because Cord-Cutting Assumptions Are All Wrong
The logic is sound enough. Cable television service has become outrageously expensive, so it makes sense that the advent of lower-cost streaming alternatives -- like Netflix -- has prompted consumers to cut ties with cable companies. The industry only exacerbated the problem by responding with more price increases rather than lowering its monthly bills. All told, eMarketer estimates nearly 23 million U.S. households have cut the cord -- presumably because of unchecked costs -- since cable's footprint peaked in 2013.
As it turns out, however, consumers may not be as averse to paying something of a premium for cable TV as once thought. fuboTV (NYSE: FUBO) is doing pretty well for itself, selling a virtual cable package consisting of 117 channels at a not-exactly-cheap price of $64.99 per month. The company boasted 455,000 paying customers as of the end of the third quarter (ending in September), and recently informed shareholders it added around another 90,000 subscribers during the fourth quarter of 2020. It's the fifth quarter of the past six the company's managed to add customers.
Perhaps there's a healthy cable television market after all, if it's the right product at the right price.
Source Fool.com
