Steer Clear of fuboTV Until This Starts Happening
Most conventional cable television service providers (like Comcast's Xfinity and Charter's Spectrum) face little geographical competition. In theory, if a potential competitor can sidestep these companies' regional reaches by delivering lower-cost cable TV using a high-speed internet connection, it's got a chance at breaking into the cable television market.
But virtual cable TV company fuboTV (NYSE: FUBO) is coming face-to-face with a tough reality. As it turns out, acquiring the video content passed along to paying subscribers isn't cheap. The vast majority of the company's cable subscription revenue is being chewed up by affiliate fees passed back to networks and cable channels.
And worse, there's no end in sight to this dynamic.
Source Fool.com
