What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-03-05 compared with 2023-02-27 · 85 added, 81 removed, 135 unchanged (55% of the section changed)

Our mission is to build the world’s leading global live TV streaming platform with the greatest breadth of premium content and interactivity.

We are a sports-first, cable TV replacement product, offering subscribers access to tens of thousands of live sporting events annually, as well as leading news and entertainment content, both live and on demand.

Fubo allows customers to access content through streaming devices and on SmartTVs, mobile phones, tablets, and computers.

Live TV streaming has disrupted the traditional pay TV model (linear video received through cable or satellite providers for a paid subscription), which we refer to as “Pay TV.” This disruption has shifted billions of dollars in subscription and advertising revenue to streaming platforms.

The rate of Pay TV cord-cutting (termination of a cable or satellite subscription) has continued to accelerate in the United States, while consumers have increasingly favored the streaming experience.

As consumers continue to spend more time streaming content, we also believe that advertisers will allocate more dollars away from traditional linear TV advertising spend and towards streaming services.

Yet, despite being a growing share of TV consumption, streaming is still in the early stages of adoption.

With a global mission to aggregate the best in TV, including premium sports, news and entertainment content, through a single app, Fubo aims to transcend the industry’s current TV model.

We are a sports-first, Pay TV replacement product offering subscribers access to tens of thousands of live sporting events annually, alongside leading news and entertainment content, both live and on demand.

Fubo’s platform is designed to empower customers to seamlessly access content through streaming devices and on Smart TVs, mobile phones, tablets, and computers.

Live TV streaming has disrupted the traditional Pay TV model (linear video delivered via cable or satellite providers for a paid subscription), which we refer to as “Pay TV.” This disruption has shifted billions of dollars in subscription and advertising revenue to over-the-top (“OTT”) streaming platforms, as evidenced by the accelerating rate of Pay TV cord-cutting in the United States.

Consumers increasingly favor the streaming experience, leading us to believe that advertisers will follow, further shifting dollars away from traditional linear TV advertising towards streaming services.

Yet, despite being a growing share of overall consumption, live TV streaming is still a fraction of the size of traditional Pay TV.

We believe this creates a significant opportunity for us to capitalize on the cord-cutting movement.

We offer subscribers a live TV streaming service with the option to purchase incremental features, including additional content or enhanced functionality (“Attachments”) best suited to their preferences.

Our base plan, Fubo Pro, includes a broad mix of channels, including top Nielsen-ranked networks, across sports, news, and entertainment.

At the core of our offering is our proprietary technology platform, purpose-built for live TV and sports viewership, and our first-party data.

Our proprietary technology stack has enabled us to regularly offer new features and functionality.

Unlike other popular Video-on-Demand-only (“VOD”) streaming services, live TV streaming requires sophisticated infrastructure and technology, given the nuances associated with an offering of live programming that refreshes regularly.

Today, our proprietary video delivery platform supports all major sports leagues and entertainment content owner delivery requirements.

We offer multi-view on Apple TV, which enables subscribers to watch up to four live streams simultaneously, and we offer FanView on multiple devices, which allows subscribers to engage with interactive elements and display game data alongside their chosen content.

We leverage our data throughout our organization to make data driven decisions on what content we acquire for our subscribers to influence product design and strategy, to drive subscriber engagement, and to enhance the capabilities and performance of our advertising platform for our advertising partners.

As a result of our direct-to-consumer model, we gain further insight into customer behavior from the billions of data points captured by our platform each month.

This data drives our continued innovation and is at the core of our enhanced user experience, product and content strategy, and advertising differentiation.

The data also enables us to provide users with real-time personalized discovery of live and on-demand programming and to surface relevant content for our users.

Our base plan, Fubo Pro, boasts a broad mix of top Nielsen-ranked channels across sports, news, and entertainment.

Our core offering sits on a proprietary technology platform built specifically for live TV and sports viewership, leveraging our first-party data.

This enables us to consistently introduce new features and functionalities.

Unlike video on demand (VOD)-only services, live TV streaming demands sophisticated infrastructure due to the nuances of regularly refreshing live programming.

Notably, our video delivery platform caters to all major sports leagues and entertainment content owners.

For example, Apple TV users can enjoy MultiView, allowing them to watch up to four live streams simultaneously.

Moreover, we leverage data across the organization to acquire subscriber-preferred content, influence product design and strategy, boost subscriber engagement, and enhance the capabilities and performance of our advertising platform for partners.

Our direct-to-consumer model grants us further insight by capturing billions of data points monthly.

This data set drives our continuous innovation, shaping our enhanced user experience, product & content strategy, and differentiated advertising approach.

By analyzing this data, we can personalize live and on-demand content discovery in real-time, creating relevant suggestions for each subscriber.

Our growth strategy includes acquiring subscribers who are attracted to our sports offering and can find with us a compelling sports, news, and entertainment viewing alternative to a traditional Pay TV service.

We actively engage those subscribers by providing a seamless Pay TV replacement through a personalized easy-to-use streaming product at a lower cost with greater convenience and flexibility than traditional Pay TV providers.

We actively engage those subscribers by providing a seamless Pay TV replacement through a personalized easy-to-use streaming product at competitive prices with greater convenience and flexibility than traditional Pay TV providers.

We then monetize our audience through subscription fees and our digital advertising offering.

In 2021 and 2022, the majority of our revenue was generated from the sale of subscription services and the sale of advertisements in the United States, though the Company has started to expand into international markets, with operations in Canada, Spain and France.

In 2022 and 2023, the majority of our revenue was generated from the sale of subscription services and the sale of advertisements in the United States, though the Company also has operations in Canada, Spain and France.

Consistent with our focus on interactivity, we completed the acquisition of Edisn Inc.

1 unchanged sentence

With Edisn, we have expanded, and continue to expand, our data science and engineering organization globally, while strengthening our technology capabilities and accelerating innovation.

Table of Conte nts

We also acquired Molotov SAS (“Molotov”), a video streaming platform based in Paris, France, in December 2021.

With Molotov, we have augmented our technology capabilities, which we believe will enable us to launch our interactive sports and entertainment streaming platform more efficiently on a global scale.

Table o f Contents

Industry Overview

Streaming services have experienced rapid growth in adoption as consumers engage with streaming video and audio through a variety of devices, including connected TVs, mobile phones, and tablets.

Traditional live TV accounts for the majority of TV viewing hours for U.S.

households, however, the proportion is declining as customers continue cutting the cord.

We believe consumers are increasingly favoring the superior customer experience, lower cost, and better value of streaming services.

While traditional Pay TV still accounts for a meaningful share of TV viewing hours for U.S.

households, the proportion is declining as customers continue cutting the cord.

We believe consumers are increasingly favoring the superior customer experience, competitive pricing, and better value of streaming services.

Sports and news content have been a key driver for Pay TV operators to retain and grow audiences.

2 unchanged sentences

Our Business Model

Our business motto is “come for the sports, stay for the entertainment.” This consists of leveraging sporting events to acquire subscribers at lower acquisition costs, given the built-in demand for sports.

We then leverage our technology and data to drive higher engagement and induce retentive behaviors such as favoriting channels, recording shows, and increasing discovery through our proprietary machine learning recommendations engine.

Next, we look to monetize our growing base of highly engaged subscribers by driving higher average revenue per user (“ARPU”).

Our business motto is “come for the sports, stay for the entertainment.” This consists of leveraging sporting events to acquire subscribers at efficient acquisition costs, given the built-in demand for sports.

We then leverage our technology and data to drive higher engagement and induce retentive behaviors such as watching content, favoriting channels, recording shows, and increasing discovery through our proprietary machine learning recommendations engine.

We monetize our growing base of highly engaged subscribers by driving higher average revenue per user (“ARPU”).

We drive our business model with three core strategies:

3 unchanged sentences

Our Offerings

Our offerings address the needs of the parties in the TV streaming ecosystem.

We offer consumers a live TV streaming platform for sports, news, and entertainment.

We provide multiple plans with the flexibility for consumers to purchase the Attachments best suited for them.

Our base plan, Fubo Pro, includes over 100+ channels, including many of the top Nielsen-rated networks, dozens of channels with sports, double digit news channels, and some popular entertainment channels.

Subscribers have the option to add premium channels and additional channel packages, as well as upgrade other Attachments such as more DVR storage with Cloud DVR Plus and additional simultaneous streams with Family Share.

As cord cutting continues and traditional Pay TV viewers decline, advertisers are increasingly allocating their ad budgets to Over-the-Top (“OTT”) platforms to reach these audiences.

Fubo’s sports-first live TV platform offers advertisers a growing and increasingly valuable live audience and provides un-skippable ad inventory on high quality content.

Advertisers also benefit from combining traditional TV advertising formats with the advantages of digital advertising including measurability, relevancy, and interactivity.

Table of Conte nts

Our live TV streaming platform caters to sports, news, and entertainment fans.

With flexible plans and optional "Attachments," users can customize their experience.

The base plan, Fubo Pro, boasts over 100+ channels, including top Nielsen-rated networks, and dozens of sports, news, and entertainment options.

It also features numerous Regional Sports Networks (RSNs) for in-market games unavailable on national channels.

Subscribers can further tailor their experience by adding premium channels and channel packages, or upgrading "Attachments" like Cloud DVR Plus for more storage and Family Share for additional simultaneous streams.

As cord cutting continues and traditional Pay TV viewers decline, advertisers are increasingly allocating their ad budgets to OTT streaming platforms to reach these audiences.

We believe our sports-first, live TV streaming platform offers advertisers a growing and valuable live audience, deeply engaged with premium content and unreachable through traditional channels.

Moreover, Fubo provides unskippable ad inventory within this high-quality engagement, maximizing exposure.

Advertisers further benefit from our innovative ad formats, bridging the gap between traditional Pay TV and the advantages of digital advertising, including measurability, relevancy, and interactivity.

We believe this combination delivers a differentiated advertising experience for brands and viewers alike.

Content Providers

Our TV streaming platform creates the opportunity for content providers to monetize and distribute their content to our highly engaged audience.

In doing so, content providers are expanding their audiences, which have shrunk on traditional Pay TV because of ongoing cord-cutting.

By aggregating a broad variety of content to deliver a comprehensive offering on our platform, we believe Fubo is able to provide greater engagement and value to subscribers than content providers would otherwise be able to deliver independently.

Furthermore, our data-driven platform enables us to capture valuable insights on consumer behavior and preferences, which are increasingly valuable to our content providers.

Our platform allows content providers to monetize and distribute their content to our highly engaged audience, counteracting the shrinking viewership market share of Pay TV due to cord-cutting.

By aggregating a diverse mix of content, we believe Fubo delivers a more compelling and engaging experience for subscribers than providers could offer alone.

Furthermore, our data-powered platform generates valuable insights into consumer behavior and preferences, which are increasingly valuable to our content partners.

Table o f Contents

We generate significantly higher levels of revenue and subscriber additions in the third and fourth quarters of the year.

This seasonality is driven primarily by sports leagues, especially the National Football League.

This seasonality is driven primarily by an influx of new subscribers at the start of the National Football League and college football.

Our operating results may also be affected by the scheduling of major sporting events that do not occur annually, such as the World Cup or Olympic Games, or the cancellation or postponement of sporting events.

4 unchanged sentences

• Continue to efficiently grow our subscriber base :

As of December 31, 2022, Fubo had approximately 1.445 million paid subscribers in the United States and Canada (“North America” or “NA”) and approximately 420,000 paid subscribers in Spain and France (“Rest of World” or “ROW”), up from approximately 1.122 million in NA and approximately 193,000 in ROW as of December 31, 2021.

As of December 31, 2023, Fubo had approximately 1.618 million paid subscribers in the United States and Canada (“North America” or “NA”) and approximately 406,000 paid subscribers in Spain and France (“Rest of World” or “ROW”), compared to approximately 1.445 million in NA and approximately 420,000 in ROW as of December 31, 2022.

We utilize a broad range of subscriber acquisition channels and tactics designed to optimize marketing spend and efficiently acquire and retain subscribers.

Our Sales and Marketing expenses relative to total revenues was approximately 18.2% in during the year ended December 31, 2022.

Our Sales and Marketing expenses relative to total revenues was approximately 15.1% for the year ended December 31, 2023, compared to 18.2% for the year ended December 31, 2022.

We will continue to utilize and analyze the data we have collected to help us become more efficient with our marketing campaigns relative to spend.

1 unchanged sentence

Our NA ARPU was $82.25 and $72.74 for the year ended December 31, 2023 and 2022, respectively.

Our ROW ARPU was $6.14 for the year ended December 31, 2022.

Our ROW ARPU was $6.82 and $6.14 for the year ended December 31, 2023 and 2022, respectively.

We drive ARPU expansion through price-increases, attachment sales, and advertising revenue growth.

8 unchanged sentences

• Continue to enhance our content portfolio with cost vigilance :

Because we have the direct-to-consumer relationship with the ability to analyze all the content that our subscribers consume, we believe we can continue to drive better subscriber experiences.

Because we have a direct-to-consumer relationship with the ability to analyze all the content that our subscribers consume, we believe we can continue to drive better subscriber experiences.

We plan to continue to optimize our content mix to best suit our subscribers’ interests by leveraging our deep understanding of our subscribers through the data captured on the platform, with the goal of expanding unit economics by balancing the aggregation of the best sports and entertainment programming with vigilance around content costs.

Table of Conte nts

• Continue to invest in our technology and data capabilities:

We believe that our technology platform, coupled with our content offering, differentiates us.

We continue to invest and build a scalable, highly automated technology infrastructure, that’s purpose-built to give us a structural advantage to help drive subscriber acquisition, content strategy and product decisions.

We are focused on adding interactive features that turn passive viewers into active participants.

Additionally, in 2022 we initiated the integration of the Fubo and Molotov platforms together into a Unified Platform, with the goal of launching in the United States in 2023.

We anticipate this initiative will drive significant cost savings over the coming years as well as increase product development velocity and innovation.

We believe our unique combination of technology and content sets us apart.

We continue to invest in building a scalable, automated infrastructure specifically designed to fuel subscriber acquisition, strategic content selection, and informed product decisions.

We emphasize interactive features that empower users to transform from passive viewers to active participants.

Moreover, we believe our integration of the Fubo and Molotov platforms into a single Unified Platform will yield significant cost savings, and increased product development velocity and innovation.

Table o f Contents

• Expand Internationally:

9 unchanged sentences

Unauthorized use of our intellectual property by third parties, and the expenses incurred in protecting our intellectual property rights, may adversely affect our business.

Patents and Patent Applications

Patents and Registered Designs

As of December 31, 2023, we had four issued U.S.

patents, one non-provisional U.S.

patent application, one U.S.

design patent application, 18 granted international design registrations in three international design patents, three granted international patents, and 19 international patent applications pending.

The issued and granted patents expire in 2033 and 2038, the pending patent applications, if granted, will expire in 2038 and 2041, and the international design registrations have expiration dates ranging from 2035 to 2045.

utility patents, one U.S.

utility patent application, five granted foreign utility patents, seventeen foreign utility patent applications, and eighteen granted foreign design registrations in three jurisdictions.

The issued U.S.

utility patents expire in 2038, the U.S.

utility patent application, if granted, will expire in 2041, the granted foreign utility patents will expire on dates ranging from 2033 to 2038, the foreign utility patent applications, if granted, will expire on dates ranging from 2033 to 2041, and the foreign design registrations will expire on dates ranging from 2035 to 2045.

Although we actively attempt to utilize patents to protect our technologies, we believe that none of our patents, individually or in the aggregate, are material to our business.

We will continue to file and prosecute patent applications when appropriate to attempt to protect our rights in our proprietary technologies.

However, there can be no assurance that our patent applications will be approved, that any patents issued will adequately protect our intellectual property, or that such patents will not be challenged by third parties or found by a judicial authority to be invalid or unenforceable.

We also rely on several registered and unregistered trademarks to protect our brand.

As of December 31, 2023, we had 37 trademarks registered globally.

“fuboTV” is a registered trademark in the United States and the European Union.

Table of Conte nts

The TV streaming market continues to grow and evolve as more viewers shift from traditional Pay TV to streaming.

There is significant competition in the TV market for users, advertisers, and broadcasters.

“fuboTV” is a registered trademark in the United States and the European Union ("EU").

The TV streaming market continues to grow and evolve as more viewers shift from traditional Pay TV to OTT streaming.

There is significant competition in the live TV market for users, advertisers, and broadcasters.

We principally compete with Pay TV operators, such as Comcast, Cox and Altice, along with other virtual multichannel video programming distributors (“vMVPDs”), such as YouTube TV, Hulu Live and Sling TV.

While the presence of these competitors in the market has helped to boost consumer awareness of TV streaming, contributing to the growth of the overall market, their resources and brand recognition present substantial competitive challenges.

We compete on various factors to acquire and retain users.

We also compete to a lesser extent with network-operated direct-to-consumer streaming services, such as Peacock, Paramount+, ESPN+, and would expect to compete with the proposed joint venture between The Walt Disney Company ("Disney"), Fox Corporation ("Fox") and Warner Brothers Discovery, Inc.

("WBD") (the “Network JV”), which, if it becomes operational, would operate a new sports streaming service.

We are actively taking steps in response to actions by certain competitors that we believe are harmful to competition within the industry and to consumers.

As announced on February 20, 2024, we have filed an antitrust lawsuit against the parties to the Network JV and certain of their affiliates, challenging the formation of the Network JV and their past business practices on antitrust grounds, and seeking injunctive relief to stop the proposed Network JV and other practices, as well as damages.

There can be no assurance, however, that we will be successful in this lawsuit.

For additional information, please see Part I, Item 1A.

“Risk Factors—Risks Related to Our Relationships with Content Providers, Customers and Other Third Parties—If our efforts to attract and retain subscribers are not successful, our business will be adversely affected.” and Part I, Item 3.

“Legal Proceedings” in this Annual Report.

Table o f Contents

We compete on various factors to acquire and retain subscribers.

These factors include quality and breadth of content offerings, especially within live sports;

features of our TV streaming platform, including ease of use and superior user experience;

features of our TV streaming platform;

user experience and engagement;

brand awareness in the market;

and perceived value relative to the price of our service.

Additionally, we compete for user engagement.

Many users have multiple subscriptions to various streaming services and allocate time and money between them.

We also face competition for advertisers, which in part depends on our ability to acquire and retain users.

and a competitive value proposition.

Many users have multiple subscriptions to various Pay TV and streaming services and allocate time and money between them.

Thus, while the presence of these competitors in the market has helped to boost consumer awareness of TV streaming, contributing to the growth of the overall market, their resources and brand recognition present substantial competitive challenges.

We also face competition for advertisers, which in part depends on our ability to scale our subscriber base.

Providing a large and engaged audience is crucial for advertisers on our live TV streaming platform.

2 unchanged sentences

Additionally, advertisers continue to allocate a large portion of spend to advertise offline.

Therefore, we also compete with traditional media platforms such as traditional linear TV and radio.

Therefore, we also compete with traditional media platforms such as traditional linear Pay TV and radio.

We are increasingly leveraging our data and analytics capabilities to optimize advertisements for both users and advertisers.

19 unchanged sentences

Collectively through these initiatives we aim to keep our employees well-informed and to increase transparency.

Table of Conte nts

Diversity, Equity and Inclusion

4 unchanged sentences

Our policies and compliance trainings prohibit such discrimination and harassment, and all our employees are expected to exhibit and promote honest, ethical, and respectful conduct in the workplace.

Table o f Contents

Compensation and Benefits

Our compensation programs and benefits packages are designed to attract, retain and motivate exceptional talent who possess the skills necessary to drive our business objectives, assist in the achievement of our strategic goals and create long-term value for our shareholders.

We offer employees compensation packages designed to be competitive that include base salary, and, depending on the role, business function and geographic market, cash bonuses, commissions, long-term incentive equity, and performance-based equity.

We offer employees compensation packages designed to be competitive that include base salary, and, depending on the role, business function and geographic market, performance-based cash bonuses, commissions, long-term incentive equity, and performance-based equity.

We are proud that we have granted equity to the majority of our employees across all levels of the organization as part of their total compensation package.

4 unchanged sentences

We are committed to the health and safety of our employees, and continue to adapt to ever-changing workplace and workforce dynamics.

In response to the COVID-19 pandemic, we took a number of precautionary measures to protect the health and safety of our employees, including by initially transitioning our workforce to remote working as we temporarily closed our offices beginning in March 2020.

Our offices have subsequently reopened and the majority of our employees have returned to office on a hybrid schedule;

however some of our employees continue to work remotely, and, in the long term, we expect some personnel to continue to do so on a regular basis.

The majority of our employees have adopted a hybrid work schedule (consisting of both in-person work and working from home);

however some of our employees continue to work remotely full-time, and, in the long term, we expect some personnel to continue to do so on a regular basis.

We are focused on building capabilities to support a variety of work styles where individuals, teams, and our business can be successful.

1 unchanged sentence

We also maintain a whistleblower hotline through which employees can report health and safety risks.

Merger with fuboTV Sub

On April 1, 2020, fuboTV Acquisition Corp., a Delaware corporation and our wholly-owned subsidiary (“Merger Sub”) merged with and into fuboTV Sub, whereby fuboTV Sub continued as the surviving corporation and became our wholly-owned subsidiary pursuant to the terms of the Agreement and Plan of Merger and Reorganization dated as of March 19, 2020, by and among us, Merger Sub and fuboTV Sub (the “Merger Agreement”).

Following the Merger, we changed our name from “FaceBank Group, Inc.” to “fuboTV Inc.,” and we changed the name of fuboTV Sub to “fuboTV Media, Inc.” The combined company operates under the name “Fubo,” and our trading symbol is “FUBO.” See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Merger with fuboTV Sub” in Part II, Item 7 in this Annual Report for a further description of the Merger.

Table of Conte nts

Government Regulation

11 unchanged sentences

These laws and regulations, and their application to our business, are increasingly shifting and expanding.

Compliance with these laws and regulations, such as the California Consumer Privacy Act ("CCPA"), as amended by the California Privacy Rights Act ("CPRA"), and the European Union General Data Protection Regulation 2016/679 (the “GDPR”) could affect our business, and their potential impact is unknown.

Compliance with these laws and regulations, such as the California Consumer Privacy Act ("CCPA"), as amended by the California Privacy Rights Act ("CPRA"), and the EU General Data Protection Regulation 2016/679 (the “GDPR”) could affect our business, and their potential impact is unknown.

Any actual or perceived failure to comply with these laws and regulations may result in investigations, claims and proceedings, regulatory fines or penalties, damages for breach of contract, or orders that require us to change our business practices, including the way we process data.

Table o f Contents

We are also subject to breach notification laws, including the GDPR, in the jurisdictions in which we operate, and we may be subject to litigation and regulatory enforcement actions as a result of any data breach or other unauthorized access to or acquisition or loss of personal information.

4 unchanged sentences

We were incorporated in 2009 as a Florida corporation under the name York Entertainment, Inc., and on August 10, 2020, our name was changed to fuboTV Inc.

fuboTV Sub was incorporated in 2014 as a Delaware corporation.

FuboTV Media Inc.

(f/k/a fuboTV Inc.) was incorporated in 2014 as a Delaware corporation.

Our principal executive offices are located at 1290 Avenue of the Americas, 9th Floor, New York, New York 10104, and our telephone number is (212) 672-0055.

1 unchanged sentence

Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report, and you should not consider information on our website to be part of this Annual Report.

Table of Conte nts

Available Information

5 unchanged sentences

Any updates to the list of disclosure channels through which we will announce information will be posted on the investor relations page on our website.

Table of Conte nts

Table o f Contents

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business