Now Streaming: Advertisers reportedly planning to spend loss on TV ads

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among this weekend’s most notable new streaming content is Netflix (NFLX) comedy miniseries “The Four Seasons,” which stars Tina Fey, Will Fortet, Colman Domingo, and Steve Carell. AMC+ (AMCX) subscribers can catch the new season of “The Walking Dead: Dead City,” while Disney+ (DIS) users can watch animated series “Star Wars: Tales of the Underworld.” Additionally, Amazon Prime Video (AMZN) subscribers can watch the black comedy film “Another Simple Favor,” starring Anna Kendrick and Blake Lively. The film is a sequel to 2018’s “A Simple Favor.”

TV ADS: Alphabet’s (GOOGL) Google and Meta Platforms (META) have indicated that they’re not seeing much pullback from advertisers concerned about the economy, though that’s likely to be a different story for television networks and content-streaming services, The Information’s Sahil Patel (CMCSA) NBCUniversal, and Amazon Prime Video. Meanwhile, Warner Bros. Discovery (WBD) and Paramount (PARA) are in a more challenging position as their sports programming slates are not as large, the author says, citing ad buyers.

ROKU RESULTS: Roku (ROKU) reported better-than-expected earnings and revenue for Q1, with Platform revenue increasing 17%, in line with the company’s outlook. “Our scale in the U.S. exceeds half of broadband households and continues to grow,” the company said. “Beginning with our Home Screen, we continue to enhance the Roku Experience to improve content discovery for viewers, which is increasing engagement, ad reach, and subscriptions. In the U.S., The Roku Channel is now the #2 app on our platform by engagement.” Looking ahead, Roku provided revenue guidance for Q2 and FY25 that are both below consensus estimates.

Meanwhile, Roku also announced that it has entered into an agreement to acquire Frndly TV, a subscription streaming service that offers live TV, on-demand video, and cloud-based DVR for an affordable price. “Based in Denver, CO, Frndly TV was founded in 2019. It offers subscribers access to more than 50 top-rated live TV channels, including A&E, Hallmark Channel, The History Channel, Lifetime, and more, as well as thousands of hours of on-demand content, starting at $6.99/mo. Subscribers also can record their favorite shows using Frndly TV’s unlimited cloud-based DVR, as well as access any show or movie that has aired in the past 72 hours on live channels,” the company stated. “Frndly TV’s impressive growth and expertise in direct-to-consumer subscription services make it a compelling addition to Roku,” said Anthony Wood, Founder and CEO of Roku, Inc. “This acquisition supports our focus on growing platform revenue and Roku-billed subscriptions, with a live content offering our users love at an industry-leading price point.” Frndly TV’s team, including its leaders, will stay on after the transaction closes. The acquisition is expected to be completed in the second quarter, pending customary closing conditions. The total purchase price is $185M in cash, which includes $75M held back that is tied to meeting performance goals and milestones over the next two years, Roku said.

FUBO: FuboTV (FUBO) reported mostly upbeat Q1 results, with the company noting North America revenue rose 3.5% year-over-year, though paid subscribers fell 2.7% in Northt American and 10.9% in the rest of the world. The company stated that its key metrics are given on a year-over-year basis due to the seasonality of sports content. Looking ahead, FuboTV provided a conservative revenue outlook for Q2, guiding for a 10% year-over-year decline in revenue and a 14% decline in paid subscribers.

“We are pleased with Fubo’s performance in the first quarter and remain focused on our path to profitability in 2025 for our global streaming business,” said Edgar Bronfman Jr., executive chairman, Fubo. “The first quarter marked our ninth consecutive quarter with improvements in Adjusted EBITDA and Free Cash Flow. Looking ahead, we plan to continue investing in infrastructure, technology and product, with the goal of providing customers with a high-quality, seamless sports entertainment experience.”