A streaming television platform like FuboTV (FUBO) depends on content. Whether it produces its own, or subcontracts out, it needs content to get people coming back and subscribing. But FuboTV is currently under what some call a “double blackout.” This is not leaving FuboTV in a good position, and investors are responding. FuboTV shares are down over 3% in the closing minutes of Monday’s trading.
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FuboTV’s streaming is more of a rebroadcast service of standard linear cable channels than a pure streaming platform, but it still offers a great way to get cable from an internet connection. The problem, however, is that Fubo is currently under a “double blackout,” having lost access to both Warner Bros. Discovery (WBD) channels and, more recently, NBCUniversal (CMCSA).
Fubo lost the Universal channels back on November 21, and has reportedly been without them ever since. Fubo has lost the Warner channels for nearly two years now, having first lost them in 2020, then lost them a second time in April 2024. Fubo never got the channels back from the 2024 blackout. This cost Fubo not only a range of entertainment options, but also a set of sports channels including various NBC games, the Golf Channel, and fully nine different regional sports networks (RSNs) that were under NBC’s purview.
Prices Can Go Down?
This leaves Fubo with something of an existential crisis on its hands. After all, there are a lot of players in this market, and with Fubo hurt seriously by the loss of so many channels, it needs a way to keep viewers subscribing. A week and a half ago, Fubo revealed it was cutting prices, a move that, these days, is downright revolutionary.
The price drops were not huge. The Essential package was cut from $85 per month to $74. The Pro package now runs a dollar more than the Essential package, where previously it was the same price. And the Elite package got cut from $95 per month to $84. Without NBCUniversal and without Warner channels, the price cuts are kind of a necessity. However, it is odd that those two blocs of channels together only add up to about $10 to $11 worth of value to subscribers.
Is Fubo Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on FUBO stock based on two Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 80.95% rally in its share price over the past year, the average FUBO price target of $4.63 per share implies 79.81% upside potential.
