Sports-centric streaming TV service Fubo TV said it exceeded subscriber growth for the previous quarter ending in September, according to an earning report released on Tuesday.
The company said it has more than 455,000 subscribers who are willing to part with $65 a month for 95 channels of local broadcast, live news, sports and general entertainment channels. The company offers networks from Comcast, Fox Corporation, the Walt Disney Company, ViacomCBS, Discovery Networks, AMC Networks and others.
Advertising revenue also increased, with the company bringing in $7.5 million from the sale of supplemental in-stream advertisements, a 155 percent increase compared to last year.
The results beat its own revenue and earnings guidance delivered to investors prior to its initial public offering in early October.
“Q3 2020 was the strongest quarter in Fubo TV’s history, exceeding targets in all of our key metrics,” David Gandler, the co-founder and chief executive of the service, said in a press release.
During the quarter, the company dropped AT&T-owned WarnerMedia channels, including CNN, TBS and TNT. It also inked a deal to bring channels from Walt Disney Company on board, including ESPN’s sports multiplex.
Fubo TV also signed distribution deals to bring the MLB Network and streaming news channel NBC News Now to the service.
The addition of the ESPN channels and others to the sports-centric streaming service offset any concerns that subscribers would bail when the AT&T channels were dropped.
“A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers,” Gandler said.
Fubo TV competes in the streaming pay TV space against Google-owned YouTube TV, Disney-owned Hulu with Live TV and AT&T TV. The service is available on all popular streaming TV hardware devices, on smartphones, tablets and computers.
In addition to the TV service, Fubo TV executives said on Thursday they intend to branch out into the online sports wagering market.
“Our goal with wagering is to develop a new revenue stream for Fubo TV, and one which we believe will be an important contributor to our business,” the company said. “We expect to share more tactical details as appropriate. And, of course, we expect to continue to grow our subscribers which will positively impact any decision we make on wagering.”
