NEW YORK - FuboTV Inc. (NYSE: NYSE:FUBO), a prominent player in sports-first live TV streaming, has expanded its combat sports offerings by launching BKFC TV, the inaugural free ad-supported streaming TV (FAST) channel from Bare Knuckle Fighting Championship (BKFC). BKFC TV will feature a 24/7 lineup of BKFC’s flagship events, prospect series, and fight night events, marking the first time the channel is accessible outside the BKFC app.
The move comes in response to the growing popularity of combat sports among FuboTV's audience, with BKFC content consistently ranking in the network's top 10 most-watched programs. Pamela Duckworth, head of Fubo Studios, expressed the company's commitment to meeting the demand for high-energy combat sports by offering round-the-clock access to BKFC content for Fubo subscribers.
David Feldman, founder and CEO of BKFC, acknowledged the successful viewership on Fubo Sports and the timely opportunity to launch their FAST channel on the platform, promising fans nonstop action.
BKFC is known for its fast-paced and adrenaline-pumping bare-knuckle combat sport, which features athletes competing without gloves in a specially designed ring. The organization prides itself on safety and adheres to a strict set of rules, including the prohibition of hand wraps within one inch of the knuckle, distinguishing itself from other organizations that claim to offer bare-knuckle fighting.
FuboTV's subscription packages, which include over 400 leading sports, news, and entertainment channels, now encompass BKFC TV. FuboTV continues to innovate in the live TV streaming space, being the first virtual MVPD to launch features like 4K streaming, MultiView, and Instant Headlines, an AI-generated news feature.
This development is based on a press release statement from FuboTV. The company's forward-looking statements indicate a strategic focus on expanding its live events and sports programming, aiming to provide an engaging and personalized streaming experience for subscribers. However, FuboTV also acknowledges the risks and uncertainties involved in such ventures, including their ability to maintain profitability and manage growth effectively.
BKFC TV's availability on FuboTV's platform is a strategic move to capitalize on the synergy between the two brands and the increasing consumer interest in combat sports, offering a new avenue for fans to engage with the sport.
In other recent news, fuboTV has seen significant developments. The company reported a 26% increase in North American total revenue, reaching $382.7 million in Q2 2024. This was accompanied by a 24% growth in paid subscribers, totaling 1.45 million, and a 14% revenue boost in its advertising business, amounting to $25.8 million. On the legal front, fuboTV obtained a preliminary injunction against a joint venture between The Walt Disney Company (NYSE:DIS), FOX Corp., and Warner Bros. Discovery (NASDAQ:WBD), temporarily lessening competition.
Roth/MKM has maintained a neutral rating on fuboTV, adjusting their price target to $2.00 from $1.75, citing the company's successful acquisition of the injunction and the potential for its ad-supported services. However, they also noted ongoing challenges, such as a high rate of cash burn and the need for a substantial increase in advertising revenue.
Seaport Global Securities also adjusted its stance on fuboTV, downgrading the stock from Buy to Neutral following the company's legal victory. They highlighted the significant role of ongoing legal proceedings in influencing the stock's movement. These are the recent developments in fuboTV's business operations and market position.
InvestingPro Insights
As FuboTV (NYSE: FUBO) steps into the ring with its latest offering, BKFC TV, it's essential for investors to keep a close eye on the company's financial health and market performance. According to the latest data available on InvestingPro, FuboTV has a market capitalization of $661.97 million, indicating its size and scale within the streaming industry. Despite its strategic expansions, the company's price-to-earnings (P/E) ratio stands at -2.59, reflecting challenges in reaching profitability over the last twelve months as of Q2 2024.
Investors should note that FuboTV's revenue has grown by 29.03% over the last twelve months, signaling a strong increase in sales. However, the company's gross profit margin remains low at 8.95%, underscoring one of the InvestingPro Tips that FuboTV suffers from weak gross profit margins. This could be a concern for investors as it indicates that the company's cost of goods sold may be relatively high compared to its revenue, potentially impacting its bottom line.
Another InvestingPro Tip that stands out is the significant return over the last week, with a price total return of 54.2%. While this may seem promising, it's essential to consider the context of such performance, including overall market conditions and company-specific news. Moreover, with analysts not anticipating the company to be profitable this year, it's crucial for investors to weigh short-term gains against long-term financial stability.
For those looking for more in-depth analysis and additional insights, InvestingPro offers a comprehensive list of tips for FuboTV. Currently, there are several more tips available on the platform, which can be accessed at https://www.investing.com/pro/FUBO to help investors make more informed decisions.
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