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3 reasons to buy Fubo shares as if there was no tomorrow

Nobody expected Fubotv (NYSE: FUBO) To be one of only four listed stocks with market captures north of $ 900 million this year, but here we are. The Live TV streaming service for sports fans recorded in January after he had passed a contract with a contract with a contract Disney (NYSE: DIS) This will eventually find the legendary media giant, which has a 70% participation of the business.

There is a lot to like in the unlikely combination with Disney, but that doesn’t mean that the climbing overgrowth is over. No matter how the future takes place, Fubo is in a better position to be successful than the beginning of this year. Let’s take a closer look at why Fubo is a share that you should buy as if there was no tomorrow.

The deal with Disney is still about a year away from the closure, since the partnership will only be completed in the first half of the next year. The combination is tempting for both parties. Fubo will receive an infusion of credibility, scalability and liquidity. Disney will see whether a less distracted company can help to improve the prospects for its Hulu + Live TV offers that lose the ground against the market leader.

Live -TV streaming providers -a niche of the digital market that tries to duplicate the traditional cable or satellite TV platform with improved functions -are still largely neglected by consumers. Only 40% of the country subscribe to a cable or satellite TV platform of the old school, but most other 60% do not bounce on the next generation alternative.

There are approximately 20 million US houses that subscribe to a live TV streaming service, and 8 million of them belong to alphabet‘S (Nasdaq: Goog) (Nasdaq: Googl) YouTube TV. Fubo had only 1.7 million subscribers paid at the end of 2024, less than 10% of the market. The Live TV streaming platform from Disney has 4.6 million subscribers. If you combine the two platforms, you would give you a struggle chance against Alphabet.

The good news is that these small target groups pay a lot of money to digitally create the cable TV experience. Mostly through subscription premiums – but also with the advertising revenue that it collects – the average sales per fubo account is 87.90 per month. If you believe that this is high, the Hulu + Live TV from Disney takes up an average of $ 99.22 per subscriber.

The bad news is that the reason why the subscription rates are so high that the stations, networks and channels on the platform, which maintain the proportion of the lion, repeatedly demands more and more with each renewal. Price is the main reason that the cable remote market market has lost a third of its audience in the past ten years. It is also the reason why people are interested in cheaper premium streaming services instead of the costly live TV bundles. If you work Fubo with Hulu + Live TV, you can access the earlier access to the audience and the Disney advertising team. Disney receives a differentiated sports player as his own ESPN+. Fubo also grows faster and increased by 19%last year. The combination would lead to synergies that go beyond the obvious scale effects.

(Tagstotranslate) Disney

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