There have been a lot of recent interesting evolutions in the multichannel video programming distributor space.
MVPDs comprise traditional cable and satellite packages as well as newer streaming or virtual MVPDs such as YouTube TV and Fubo. They’ve traditionally offered mostly wide-ranging “bundles” of channels, charging the customer a price depending on the bundle and add-ons and then paying the company providing each channel a per-subscriber fee.
But their offerings are expanding beyond that, and an announcement from Fubo Tuesday morning illustrates two new dimensions that they and others are pursuing.
One of those dimensions is MVPDs bolstering their ability to offer subscriptions to packages otherwise available over the top. This is sometimes about being able to include those direct-to-consumer streaming packages in their own linear TV packages (to address complaints about programming moving from linear to streaming) and sometimes about being able to sell DTC packages to their subscribers directly.
Charter fought for and got some of that in a carriage dispute with Disney last year, and DirecTV did the same this year. And along those lines, Fubo has now announced that it will offer standalone options to its customers. They’ll start with three packages: FanDuel Sports Network (formerly the Bally Sports regional networks, with further integration coming with FanDuel’s national free advertising-supported FanDuel TV offering), Paramount+ with Showtime, and NBA League Pass.
The FanDuel Sports Network package is already available in Fubo’s Pro base plan; it will continue to be available there as well, but will now be available for purchase through Fubo separately as well. Paramount+ with Showtime and NBA League Pass are currently available as add-ons to Fubo’s MVPD packages, and will continue to be available there, but will also now be available for purchase through Fubo without a MVPD package. (Unlike the Charter and DTV moves, though, this doesn’t come with any further DTC service inclusions for Fubo MVPD subscribers.) And that ties into other things Fubo is doing here.
The other interesting new MVPD and MVPD-adjacent dimension is serving as a content hub. Companies such as Samsung, Amazon, and Roku, which serve as smart TV hubs (either as TV manufacturers themselves, through deals with TV manufacturers for native interfaces, or through plug-in portable sticks), have emphasized this, playing up how users can find things across multiple services through their hubs.
And Fubo is now emphasizing that more as well. First, they’re doing that with a “Fubo Free” collection of nearly 200 free advertising-supported streaming television (FAST) channels. They’re also tying that in with those who buy the standalone options through them and saying they’ll look at further offerings from skinny bundles to pay-per-view to transactional video on demand (including PPV, but also digital buy or rent options).
Here’s more from a Fubo release:
FanDuel Sports Network (formerly Bally Sports Network; currently live on Fubo in select markets with more to follow), NBA League Pass and Paramount+ With Showtime are the first networks offered to customers as standalone subscriptions. They continue to be available in Fubo’s Pro base plan (FanDuel Sports Network) or as add-on channel packages (NBA League Pass, Paramount+ With Showtime). Subscribers to these standalone packages will also receive Fubo Free, a robust collection of nearly 200 free ad-supported streaming television (FAST) channels.
The launch of standalone services is a key component of Fubo’s Super Aggregation strategy, where it aims to offer flexible content bundles, from skinny to fat, at different price points, all within the Fubo ecosystem. With the growing consumer outcry for a frictionless streaming experience, Fubo will now offer three different channel plan tiers:
Fubo Free: A foundational free tier of FAST channels available to former Fubo paid and free trial subscribers as well as to subscribers of premium subscription services.
Premium Subscription Services: These services, which include both live linear and SVOD, can be purchased as standalones and do not require the purchase of the main Fubo product. Fubo is also exploring the launch of other content offerings such as pay-per-view (PPV), transactional video on demand (TVOD) and skinny bundles.
Virtual MVPD: Fubo continues to offer its signature vMVPD channel plans that aggregate the best in live sports, news and entertainment alongside a robust VOD offering.
…“Consumers want flexible streaming options that lets them subscribe to only the content they want to watch,” said David Gandler, co-founder and CEO, Fubo. “Our vision to be a Super Aggregator aims to give consumers a seamless way to access all of the content they love within the Fubo ecosystem and at appropriate price points. With the addition of standalone live and SVOD premium subscriptions, we believe offering multiple bundles, from skinny to fat, will put choice in the hands of our customers. This is what streaming should be.”
Several notable threads are coming together here.
One is the continued efforts to try and make programming easier to find in a streaming age. That’s been a key complaint for many of those used to traditional cable; hubs, zones, and so on are important to that “frictionless streaming experience,” and it’s notable to see Fubo emphasizing those.
It’s also significant to see the company emphasize their “Fubo Free” FAST collection. As FAST channels, those networks are available elsewhere, but putting them together has some advantages, especially when it comes to integration with these new premium subscription services and with their existing vMVPD offerings. And on that front, there’s often been a sharp delineation between what’s in an MVPD package and what’s a FAST channel; while FAST channels are accessible outside of MVPD bundles, it makes a lot of sense for MVPDs to throw good ones in as well to bolster their content offerings.
The other interesting element here is seeing Fubo continue to evolve their strategy. They’ve been a notable player in the streaming space on several fronts over the years, but a significant recent one has come with their lawsuit to stop Disney/Fox/WBD joint venture Venu Sports (with that lawsuit successful, at least for the moment). That lawsuit’s eventual outcome seems quite important for the future of their MVPD business. (And it could be part of this as well; they now have a digital marketplace to offer subscriptions outside of MVPD packages, so they can argue for the ability to sell Venu Sports there if it ever does launch.)
But Fubo is also going beyond just the MVPD business with moves like this. That sets them up as not just an MVPD but an MVPD+DTC+FAST hub, a DTC+FAST hub, and a FAST hub. We’ll see how it works out for them and what other subscription services (if any) they add to this approach.