Did you know that 4 out of every 5 households in the U.S. have either a Netflix, Amazon Prime, or Hulu video subscription?
Talk about rapid disruption.
Netflix started the streaming TV revolution in 2012 when the company launched a standalone streaming service. Eight years later, we’re all binge-watching Queen’s Gambit.
It’s easy to look at this level of streaming service ubiquity, and say the streaming TV revolution has already happened.
But it hasn’t…
The streaming TV revolution is actually only halfway done.
Because guess what: most of us still haven’t cut the cord.
Over 60% of U.S. households still pay for cable TV, with the most common entertainment mix today being Netflix and cable TV, because we still like live TV and sports – two things which today’s biggest streaming services don’t give us.
But that’s all changing…
A new class of live TV streaming services is emerging which have sufficient live TV and sports content firepower to get all of us to cut the cord, make pay TV obsolete, and complete the streaming TV revolution.
The time to invest in these new live TV streaming services is right now.
Today, we will unveil a small, freshly public tech company that is a pure-play on the live TV streaming revolution – and which could, over the next few years, easily score you 10X returns.
A Compelling Pure-Play on Live TV Streaming Disruption
There are a lot of live TV streaming services out there.
YouTube TV. Hulu with Live Sports. Sling TV. So on and so forth.
Together, these live TV streaming services are allowing customers to watch all of their favorite live TV shows and sporting events, without needing a cable box or messy wires, and at a fraction of the price of traditional linear TV (which runs north of $100 per month, versus $60 or less for many of these live TV streaming services).
Because their advantages are so obvious and so large, this emerging class of live TV streaming services will rapidly disrupt the TV industry over the next decade.
By 2030, none of us will have cable TV – we will all be subscribed to some mix of Netflix, Disney+, and one of these live TV streaming services.
It’s an enormous disruption which very few people are talking about today.
The market’s best and only pure-play on this live TV streaming revolution is a small, freshly public company by the name of fuboTV (NYSE:FUBO).
fuboTV is a live TV streaming service operator, much like YouTube TV and Sling TV. But the cool thing about this company is that in the live TV streaming world, fuboTV gives consumers the most bang for their buck.
That is, the fuboTV entry-level package includes 113 channels – including all of the live sports and big news channels – for just $65 per month.
YouTubeTV has the same price point… for just 85 channels.
Hulu is $10 cheaper… for about half as many channels.
Sling TV costs only $30… for roughly 40 channels, with a hit-or-miss portfolio of live sports and news channels.
In other words, fuboTV is the live TV streaming world’s closest and most economically sensible analog to linear TV.
Customers are starting to resonate with this unique fuboTV value prop, as they look to finally and fully cut the cord.
Last quarter, fuboTV grew its paying subscriber base by 58%, on top of 42% growth in the year ago quarter.
This growth story is just getting started.
fuboTV ended the third quarter of 2020 with 455,000 paying subscribers. There are over 120 million TV households in the U.S. alone. Given the platform’s early traction and unique value prop, it’s easy to see fuboTV scaling to 10-plus million subscribers over the next few years, as the whole country pivots from linear TV packages to live TV streaming services.
10 million subs… $65 monthly price points… maybe 20% to 30% operating margins as economies of scale kick in…
Add it all up, and fuboTV has visibility to netting over $1.5 billion in profits within the next few years.
A simple 20X multiple on that imputes a $30 BILLION future valuation for fuboTV.
The market cap today hovers around $1.8 billion.
That’s big enough upside potential to make fuboTV stock a compelling play on the live TV streaming revolution of the 2020s.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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