2023-05-24 15:10:02 ET
fuboTV Inc. (FUBO)
J.P. Morgan 51st Annual Global Technology, Media and Communications Conference
May 24, 2023 01:20 PM ET
Company Participants
David Gandler - Founder & CEO
Conference Call Participants
Philip Cusick - J.P. Morgan
Presentation
Operator
Hi. Thanks for joining us. Welcome to the 51st Annual J.P. Morgan TMC Conference. My name is Phil Cusick. I follow the communications and media space, and I'm pleased to welcome David Gandler, CEO and Founder of fuboTV. David, thanks for joining us.
David Gandler
Thank you for having me.
Question-and-Answer Session
Q - Philip Cusick
Nice to see you. I wanted to start with the changes to the product in the last few months. Take us through the process -- you dropped AMC, you added RSNs, you've raised the prices. Just what's been the sort of the driving force behind this? Where you want to get to rather than in each individual small piece?
David Gandler
Right. So, if you think about the history of the company. Would you like some water?
Philip Cusick
I'm good. Thank you.
David Gandler
If you think about the history of the company, we started as a service that was $6.99 back in 2015. And so, we've been optimizing our bundle. Since then, obviously, $6.99 and I think it's $74.99 at this point. We've had to continue to optimize the programming, as well as the pricing. And this is part of the strategy to double down on our sort of core brand value, which is sports. And I think the RSNs certainly have a place in the market. I mean, we talk about the primacy of sports all the time. I take that to another level and talk about the primacy of your local team. So, it just made sense from a brand perspective.
And number two, we said we wanted to be achieve profitability in 2025. And so, the intention was to lower our cost and increase our price, which was reflected in the operating leverage on our subscriber related expense line.
Philip Cusick
So help me think about the brand for fubo is sports.
David Gandler
Absolutely. Right.
Philip Cusick
What sports do I get on this as a lover of sports that I don't get on some of your streaming peers?
David Gandler
Well, I think the most important piece is the regional sports networks. And I think people underestimate the value of regional sports. Simple example is, if you live in Boston, you probably have no interest in watching the New York Yankees. And so, if you also look at Nielsen ratings across all the RSNs, the reason why you never noticed the RSNs, because ratings are nationally national, but when you look at DMA by DMA, the ranking of -- I'll just use ESPN as sort of the proxy for sports on national cable, you will find that in many of the designated market areas, ESPN actually performs worse than the local RSNs. So we thought it was a very smart move to drive engagement, reduce some seasonality and having the larger baseball package in the United States. So I think it felt like it was part of the strategy. And I think as you can see in the first quarter, it's worked out very well for us.
Philip Cusick
So walk me through that. So you took the RSNs. And effectively every customer's bill went up quite a bit. What was the impact on churn?
David Gandler
So we saw a very modest impact on churn. I believe we said on the earnings call, it was about 91 basis points. But the price hike was actually pretty significant. It was January -- early January, January 3rd or 4th, it was a $5 price up. And then in -- I think, first week of February, there was another call it $11 to $14 price up. So it was pretty -- but we talked about the pricing power that our product has and how it resonates with younger consumers. So, we didn't really see anything there, but we were very conservative in the first quarter. And I think we said that several times.
Philip Cusick
There's also been a lot of sort of seasonality through the year for your business. So do you think taking RSN sort of starts to reduce that or is that coming down in general anyway?
David Gandler
So, I mean, there is going to be inherent seasonality in our business when you're -- everything is predicated on a sports calendar. You're going to have World Cups, you're going to have Olympics, you're going to have NBA finals and start of the NFL season. So that's going to happen anyway. But we do believe that with the RSNs, there's a way to sort of impossibly impact that, having something for fans throughout the year, I think is very important. And I think the reason why you saw better numbers in the first quarter was because we were able to provide the two cohorts that we were most worried about, which I think we said, was the World Cup cohort and the NFL Super Bowl cohort, something to actually watch as they were moving off of those two sports.
Philip Cusick
Okay. And you dropped Turner a few years ago as well. We've watched Charlie [indiscernible] sort of battle with every content company over the year. But there's got to be a minimum amount of TV you have to provide to keep the customer on. And I've always wondered when Charlie was going to get there. How do you think about that minimum number?
David Gandler
Yes. So I've always said that you need about 80% of the gross rating points to continue to grow in this environment, because there -- I think there's enough data now that shows that even in the traditional cable one, the most consumers watch only -- well, they used to watch 17 channels and that went down to about 10 to 12 channels. And so 80% of the gross rating points allows us to do that. Now for us, another reason why that's important is, because if we only can carry four of the biggest players, that leaves some room for us to continue to negotiate with a fifth, right? So there could continuously be some optimization.
Philip Cusick
So of five -- four broadcasters plus Warner, let's say?
David Gandler
Yes, the new one, right. Warner Discovery.
Philip Cusick
You need four of those…
David Gandler
Yes. We've always said that. And actually, I don't even think we've ever had five, right? I think it was up until 2020, we didn't have Disney. We still managed to grow. And then we dropped Turner. So we've always had four of the five.
Philip Cusick
Right. Now how does that play into what your target is, which is to grow margin and become profitable in 2025.
David Gandler
Yes. Well, I think what we've attempted to do is ensure that the deals that we cut with the media companies are short in duration, because we're growing. So it makes sense for us to constantly renew versus what a traditional company will do. They'll try and sign five or 10 year deals. So…
Philip Cusick
So typically two or three?
David Gandler
Ours. Yes. We -- I mean, two would be ideal, but typically because it's a lot of work and these guys sometimes would prefer three over two. But for the most part, I would say they're two to three.
Philip Cusick
Okay. I cut you off. Sorry.
David Gandler
Yes. So, yes, basically we think that as we continue to scale, we're going to see better and better deals. I mean, at the end of the day we pay out. I think, last year was just south of $1 billion in fees. And despite everyone's talking about the demise of bundling and all of that, we pay a tremendous amount of money. And I don't think it's so easy to walk away from hundreds of millions of dollars a year when you're hemorrhaging money on the streaming side, right? So, I think we're very well positioned to continue to grow. And I don't think it's in anybody's interest to just have one YouTube TV.
Philip Cusick
So, just continuing down that path. I'm trying to think about the premium YouPay for content versus Comcast and Charter are massive scale direct TV -- used to be massive scale. You're a similar size to some cable companies. There's a bunch in that sort of $1 million or $2 million range. How do you think about what you're paying today versus what those guys are paying?
David Gandler
Okay. So, tough question. I would say there's two groups. There's the streaming group and then there's sort of that traditional cable group. It's tough to say relative to the streamers how much we're paying, because I think that with Google being in the cloud business, it's tough to say how those deals are getting done. But on the traditional side, if you look historically, cable has always paid the least. And then satellite came in, satellite paid a little bit more than cable. And then after that, the telcos came in, and they paid more than the satellite guys. And so, the streamers now have to pay more. That's clear. So, looking at [indiscernible] rates, I would say, depending on the network group, it could be anywhere between -- again, the bigger deals, I'm not talking -- I think on the smaller deals, we're in pretty good shape. But on the bigger deals, probably about 15% -- 15% to 20% more.
Philip Cusick
And the goal is, as the deals recycle over the next few years, how close do you think you can get there? What's the hope?
David Gandler
Well, we like to say, at fubo hope is not a strategy. But I think that the market is deteriorating -- the traditional cable market is deteriorating, there are those that say between 6% and 10% per year. If that is the rate, let's just use 10 for instance. We're growing at an outsized rate. So we're taking more customers than anyone else in the streaming space growing at roughly 20%. So, I feel like that's really good growth. My sense is, over the next few years, I think if we can continue to demonstrate our value to the ecosystem, whether it's through data or product capabilities or improving engagement for some of these players, I think we can get pretty close.
Philip Cusick
Okay. Now you said a minute ago, the linear ecosystem is deteriorating and we heard from Bob Iger a couple of weeks ago, from Brian Roberts last week. I would paraphrase what Brian said is, as the world is going to streaming and we're just going to get on board and there's nothing to be done about it. And so putting a game on peacock only football game. [indiscernible] think about make you think about the addressable market for your service in particular?
David Gandler
Sorry, were you saying he was planning to put football games on peacock only?
Philip Cusick
There's one NFL play-off [Multiple Speakers] on peacock.
David Gandler
I mean, look, people were worried about this with Thursday night football. I think Amazon is a much more scarier player than Comcast or NBCS for many reasons. Nothing happened. We lost Thursday night football, and I think the only thing that you're seeing is a significant amount of fragmentation. And so, only the hardcore viewers are actually taking advantage of this. And the casual viewers are just not able to access these things without a significant amount of cognitive load. So I don't see this as a significant issue, but remember, I also said we only need 80% of the gross rating points. So I think we feel pretty good about where we are. The engagement hours are still over 100, despite the fact that during COVID, we saw a very significant boost in viewership access everyone. So I really can't say that there's anything that we would worry about.
I also think similar to the movie space where everyone thought including some of the company's you mentioned that they would go direct to consumer with their movies. And then they all everyone did an [indiscernible] face and said, well, I just lost $1 billion.
Philip Cusick
I didn't say it was a good business. I said, that's what they're doing.
David Gandler
Right. So I think that eventually all things come full circle. And we've said in many of our letters that we're going from bundling to unbundling to rebundling. I think the aggregation business is really the only place where media players can really enjoy strong profits.
Philip Cusick
So on a linear basis, I can get cable, I can get satellite, sometimes I can get TV backed video product, sometimes. But there's a solid five streaming bundled players. Is that sustainable long term? How do you think about that?
David Gandler
You're talking about our space.
Philip Cusick
Your space. Stream, sling…
David Gandler
Yes. Okay. I mean, listen, let's pretend the streamers weren't there. You still had DIRECTV now called stream in our space. You still had Dish now called Sling in our space. And so, I would argue they're probably besides the small 400 plus cable companies, cable operators out there that have -- from 50 customers to 1 million customers, there are probably five or six major players that existed, right? Charter, Comcast, Dish, DIRECTV, Altice, Cox, there were many players. So I think that the market can support three or four players for sure.
Philip Cusick
Does it make sense to combine with any of those?
David Gandler
I mean, it's actually a very interesting question, because for the last four years media companies have been consolidating. And distributors have not. And so, I do think that there's probably some -- again, this is theoretical, I would assume that there are companies out there that are thinking, well, do we need scale, right? And I think it makes a lot of sense.
Philip Cusick
And not all of those are growing and some of them seem to be somewhat step children within the media companies system.
David Gandler
Yeah. That is definitely true. But I do think that there's probably an opportunity, definitely there will be dialogue over the next few years with some of the major players. Not for us, I'm just saying generally speaking.
Philip Cusick
How should we think about making your product better in the meantime? I think there's been a couple of announcements, but talk to us about what the -- how the product is evolving?
David Gandler
Yes. I mean, we -- I would say we're -- I would say we're closer to Spotify than like a DIRECTV or a Comcast. We believe in product. We have been first to market with features like 4K back in 2018 for the World Cup. We've been first to market with something we call multi view that now some of our competitors have been talking about, including Apple, I think now. I think I saw them start posting on their homepage that they're also doing multi view. So product is a core component of our business. And so, we've made some strong investments. I think going forward, what you'll see is, we're going to finish our -- we're in the process of combining the French acquisition with our own back end and so we call it the unified platform.
So beyond that, the platform is going to be pretty robust and we'll be focused on really improving the core product. So think about fluidity, performance. I know performance has come up in the last couple of weeks with the playoffs. That a lot of folks were underwhelmed on multiple services that they weren't able to watch games the way they had anticipated. So that's one area. The second area is going to be our advanced DVR, which is -- that's probably what you're talking about. We started some beta testing there. I think that that's a really powerful tool for us. I think that -- I think when all said and done, we'll probably see some significant upgrades to the DVR that we probably haven't seen since the advent of cloud recording.
So it's basically taking some of the Edison AI technology that we have developed and think about indexing all of your -- all of the videos in your DVR. So you can follow a team, you could follow a player, you can follow a company, you can follow a politician. And all of this would be personalized for you. So -- and that can be done in many different ways. That's sort of the power of computer vision technology. And then beyond that, it's going to be, again, we're focused on deeper personalization. So extracting again using computer vision technology and artificial intelligence through our Edison AI acquisition to really focus on extracting maximum amount of metadata to more accurately provide recommendations and discovery of content, which on our platform, if you think about -- our strategy has always been come for the sport, stay for the entertainment. So it's very important for us to ensure that we are surfacing content to drive advertising sales.
So those are kind of the key areas. And then one of the cool areas, probably further down the line I'm not going to get into is probably around conversational UI, which all of that is attached to computer vision. Think about you've DVR, I don't know, 10 college football games over the weekend. And you say, hey, fubo show me seven minutes of highlights. Now we should know the types of highlights you like, whether it's intersections or sacks or whatever it is that you like, the machine should be able to really create a very efficient user experience. So those are kind of areas that I think from the product side we’re very focused on. And video quality is another one, which always comes up for sports in particular. So I think we've made a lot of inroads there. And over the next 24 months, we will look to like release some of these things in beta.
Philip Cusick
Hoe you think about what that -- give me another example of the DVR innovation. I had a DVR that I never use anymore. So why do I bother with that?
David Gandler
So, okay, let's say, you went away, you're on vacation out of the U.S. So you can't use your cable subscription. So your DVR -- 10 different things across sports for the week. You can do a couple things. You can say, show me every three pointer that was in the last -- that was shot in the last two minutes of the game with a score that was maybe a six point game spread, right? You can ask questions like that. You can also wait till the end of the season before the Super Bowl and say, hey, show me every pass that this quarterback has thrown on Sundays in weather that was below 30 degrees. So it's a really powerful way to allow you to experience content, especially in an environment where you have hundreds of channels. We have tens of thousands of VOD assets. So I think over time, it's going to really be -- the factor is going to be being able to sort of index all of this in a way that allows you to maximize your subscription.
Philip Cusick
So advertising is one of the things you mentioned. And talk to me about the sort of progression of advertising at your business and where this can go, especially as you get more sort of personalization and recommendations get a little better?
David Gandler
Yes. So I think the good news for us is we -- just to sort of back up a little bit. So one is, we -- of the services in our space, I think if you look at any research report, you'll see that we tend to skew younger on persons 18 to 49 or probably, I would say, around 42. So that already is a very important demographic to hit, particularly when TV -- I think 22% of TV viewership, like traditional TV viewership is persons 18 to 49. So that's one element that I think is extremely important.
The second thing is, because our product is a premium product, $75 plus, people -- as people pay for that product, advertisers will probably look to engage with customers that have discretionary income. So that's sort of a second, a very important element. Think about people who watch free TV don't want to pay for TV. So what do they want to buy? They want to buy generic products, because price is the key parameter for them. So those are sort of very high-level basic reasons why I think the platform starts to perform on the ad side.
But then as you kind of get into all this personalization, I mean, there's a ton of data. We already collect about 2 billion data points a month, but this would really allow us to understand lots of things. What are people's political views, right? Because you may say show -- because we have about 40 or 50 news channels now in the platform. You could say -- maybe you're not -- maybe you're an independent voter and you say, I want to see everything on Trump or I want to see everything on Biden. You don't care what channel it is from. You just want to see all the news. So I think all this personalization allows us to actually create very, very rich datasets over time and allow us to charge a premium for certain cohorts.
Philip Cusick
I'm always waiting for my TV to be filled with bicycles and surfboards, and then I would spend money. But until then, I just don't want to buy any of that stuff.
David Gandler
That's a good point.
Philip Cusick
So gaming has been something that you've sort of been in and trying to do with tougher cash environment. You've sort of pulled yourself out of it. Talk to me about the -- both for fubo and just the market in general, where does the gaming space go and tie into sports on the video side? How do you see that sort of long term?
David Gandler
Yes. So it's interesting because part of the reason for getting into gaming was the whole concept of interactive television, right? The gamification of watching TV. So all of these things we're doing on the advanced DVR side, not only for sports, it's just for general viewing as well. We thought, I thought that that would be a great fit for people, right, where you can actually play, right? And I don't mean like Las Vegas play, where we were looking for Wales. The point was to create more engagement on the platform.
I think that it still makes a lot of sense. I think with the computer vision technology that we had, we thought the interesting piece would be that because you can actually track, recognize and track objects on a frame-by-frame basis, if the ball is down here somewhere in the quarter, there's empty space here. You can flash something for five seconds that says, Will he score? Will he not? Right? Will he jump? Will he fall? Will he -- so it gives you a chance to kind of create some of that engagement. Again, not for everyone, some people are passive viewers. They don't need that. But I do believe that there probably is value and active participation, and that also drives organic marketing.
And so, I think that when we wanted to get into gaming, I think it was around November of 2020, we were thinking about it before, but the cost of capital was zero. So we thought, okay, so over time if we invested a few hundred million dollars, and we didn't have to invest that money in marketing, we could probably benefit on both ends. One, you have more engaged subscribers, you have better retention, and then you have an additional revenue stream.
So -- but we quickly, I would say, reacted to the market conditions and pulled out because it was not realistic to continue down that path. That doesn't mean we don't like the idea. The idea is still there. I think it's just a matter of building out some of these capabilities and then working with partners that are in the gaming space to see how we can sort of monetize that audience together.
Philip Cusick
Is it inevitable that gaming and sports on TV will go hand in hand?
David Gandler
Well, I think if you think about just the whole ecosystem and how much money leagues make, right now, everybody is over monetizing, right? So the leagues are making a tremendous amount of money. The sports networks, television networks are also over monetizing, right? I think we can all agree on that. And so, in order at some point to rationalize that, you're going to need some other method to be able -- to deliver a very effective business. And so I think that there's probably a very high likelihood something will happen.
Now one might argue, a skeptic might say, yes. But okay. So at some point, they'll want to eat into that money, too. So -- but that's part of the game, right? But I do think that those two kind of -- they go together.
Philip Cusick
And are there markets around the world that you think are a good sort of direction for the U.S. in terms of what that looks like?
David Gandler
I used to think that Sky did a good job many, many years ago before Comcast had acquired it. But yes, no, I thought they did well. They had a product called Sky Bet. And I think it was -- they came into the market maybe five or six years after sort of it matured, and they were able to really grow very quickly. So that's a market that I think we look at as something interesting. But again, we're very focused on video, number one; and number two, we are extremely focused on our 2025 profitability target.
Philip Cusick
Okay. Well, let's go back to advertising. So you're building this up. Where is the market now? And what's your ability to sort of get the right inventory and monetize that?
David Gandler
Yes. So I mean the good news is, we have sports content, and it's live, and it's probably the type of content that most advertisers want to be adjacent to. And I think the brand awareness tied to professional sports, I think, works well for everyone. I don't know the last time you saw a YouTube -- not YouTube TV, a regular YouTube ad. And you said, hey, I saw this Toyota ad on YouTube. Like I don't know if people think that way. I can't remember personally any ads that I've ever seen on YouTube. So I'm not sure that's a great medium. But with the sports component, I think people tend to remember and they also -- they remember lots of things from different commercials throughout sport. So I think that that to me is probably one component that makes this whole thing very important. And it differentiates from Netflix and Disney+ and all of these other services, coupled with the fact that we have a strong audience and a premium-priced product, I think all that bodes well for us.
But I think the problem -- not the problem, but I think the delay that we've seen is because you need scale to sell ads. And so, you can't sell more ads than you have users, right? So you're going to see that ads will follow sub growth, and you've seen that. I think we've grown our ad number significantly in 2022. I think we just barely exceeded $100 million of ad revenue. And so, we think that that trend will continue going forward. And then when the macro kicks in, we'll start to see that asymmetry go from like a percentage of revenue basis.
Philip Cusick
Where are your -- you've been pretty open about your CPM numbers. Where are your CPMs for football game versus an NBC CPM for a football game?
David Gandler
Well, that's what's the exciting piece for us. We have -- because we've had a much smaller team, and I would say we're probably the most efficient company in the streaming space, and we have been for a long time. We have not had the opportunity to really develop our ad sales team. We've started to do that. And so the way we would monetize is almost -- I think it's like 95% programmatic, right? And now there's positives and negatives as it relates to programmatic. But I'm talking about specifically programmatic non-guaranteed, which is probably the lowest value inventory/CPM.
Now it's typically sold on a blind basis. And so in order for us to scale out our advertising business, that was sort of the key method of sale for us. So I would say our CPMs are about, I would say, about 50%. There's room -- there's about 50% room for us to grow those on the sports side, but I would say if you're thinking about like premium football, I'll use -- I'll say NFL college football, if you think about local markets, and you guys can probably tell me if I'm right here, but I would say local markets like San Francisco, New York, Miami, Boston, I think those broadcast CPMs can range anywhere from $70 to like $120. I haven't looked at that this year -- last year. But the year before that, I think that was probably the range. So I think for premium sports, we're probably -- when we go out to market ourselves, it's probably in the, I would say, low to high 40 -- low 30s to mid-40s. Somewhere there. So we have...
Philip Cusick
50% to 70% discount.
David Gandler
Yes. But as John mentioned, I think, in one of our meetings today, one of the interesting components is that, for the cable nets, our CPMs are actually the same as our fast channel CPMs, which is actually quite remarkable if you think about it. So that really speaks to the quality of the audience when we go out and sell it.
So I think over time, over the next 12 to 18 months, the goal is to actually go out to market, explain our product, talk about our audience. And of course, we want to be part of the buy. Now you may say, Oh, but you're smaller and you're this and you're that. That's great. But the reality is that, we have some percentage of the total addressable market. And so, if you buy a YouTube TV or you buy Sling, I mean we have audience, too. So if you care about reach, you're going to have to buy us anyway. So I think we're very well positioned, but we have a lot of work to do. And so we're investing in technology measurement, attribution, all of those things, and sales stat.
Philip Cusick
So we talked about the potential scaling on the content side of costs. What about on SG&A and the rest of the cost of running the business? I know John has been doing a lot of work on this in the last year. But how much more is there to go?
David Gandler
There's always more. You know that. We all know that there's more. I think -- well, if you look at our -- I don't know if we had a graphic in the -- in our letter, I think we did. Our operating expenses, if you look at every single line, I think we've improved on every line actually. So we've improved on, I think, our subscriber-related expense line, don't quote me on this, was 101%, came down about 93%. I think our marketing -- sales and marketing line went from 18% to 13%. Think about that. It went from 18% to 13% of revenue, and I think we beat -- we exceeded guidance fairly easily. And so, if we just had that same budget, think about where those numbers may have gone. So sales and marketing, technology, I think that's also come down significantly. I believe that there's more room.
Philip Cusick
And there's more room to come down on a dollar basis, not just as a percent of revenue as you scale.
David Gandler
I would say, in some cases, both. I think one area where there's real opportunity is the SaaS space. I think if you -- we were a start-up for the last -- until 2020 when we went public. What's interesting is that, nobody ever looked at cost. When you start a company, Amazon, Microsoft, Google, they all throw credits at you. And so, when you get all these credits, it's free money. No one looks at like compute and all of these different costs. And people are -- when you start to spec out what you're going to build, one of the variables is never like efficiency. How efficient are you architecting your platform?
I think with this push towards profitability and everyone's focus on EBITDA, companies are now going to start looking at cloud costs. They're going to look at all of their SaaS services. Do I really need all these SaaS services? Many companies probably haven't renewed their contracts. I'll raise my hand here for two to three years. Because who cares? We're growing, we're moving, things are going well. And as you start to kind of look through all of the deals, all the SaaS services that you subscribe to, you start to realize, wow, that volume back then was like 1/20 of what it is today.
And so I think that John and the finance team has been very focused on continuing to review those, and I think there's more room there. So this gives us a little bit more room for error, right? If we miss something somewhere, I think that on the cost side, I think there's probably some good room there. I mean we spend a lot of money, right? I mean it's a pretty big platform with thousands of channels, I think with millions -- tens of millions of transactions. So there's room for us to continue to improve these deals.
Philip Cusick
Real quick, I had one come in. You're building your own data center. What should we expect in terms of the cost to do that?
David Gandler
So we're still -- so I just want to remind everyone, we have over 2,000 feeds. So I'm not saying it makes sense for everybody. I think we've seen two things. One is, we've seen cloud costs also decline, again, because we're being proactive about it. But at the same time, I think that there's probably room for -- through 2025, it's going to be a good eight-figure savings out of that. It doesn't take a lot of people to run that. It's basically we're taking that same team and now saying we need you to do some additional work. But we have like EPL games, and we have all kinds of content that -- and again, our business is video. Like if anything you've shown something. you've shown your video infrastructure. If you don't believe me, just again, look at the NBA playoffs and how many issues you saw from multiple services being able to deliver those games directly.
Philip Cusick
Right. I want to finish it up, we're over time. But really quick, your confidence in having enough cash to get to breakeven you've talked about in 2025.
David Gandler
Yes. Look, I've said I'm confident. The reason why I'm confident is, one, you've already seen a significant improvement in cash usage year-over-year. That's just one data point, I get it. But we have many levers to pull. We still -- I still believe we have pricing power, number one. Our ad business has a lot of room for growth, so that's just on the revenue side. And then on the cost side, as John will tell you, we have every single team now. One of the key variables as to whether we -- or how we architect is the efficiency of the architecture. And every day, we find tens of thousands of dollars daily of cost savings in the tech stack.
So again, you have cost levers, you have marketing lever, you have the advertising piece and pricing power, and you've seen that work out. So I think that we don't have to pull all those levers, we can pull some of them. Retention improvements, all of these things, I think, will lead to -- and then renegotiating some of these deals. In some cases, there could be more content drops. So -- and also the discovery of the fast channels on the platform, that has also led to increased ad inventory. So there's just too many levers here for us not to be able to get there. Of course, we have to be diligent. We have to execute well. But I'm confident, I believe the others are confident as well. We'll be able to deliver that number.
Philip Cusick
That's great for us to leave it. Thanks, David.
David Gandler
Thanks, everybody.
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fuboTV Inc. (FUBO) J.P. Morgan 51st Annual Global Technology, Media and Communications Conference (Transcript)