Viacom Inks Carriage Agreement with Sports-Centric Fubo TV

Viacom Feb. 20 announced a carriage agreement with online TV service Fubo TV incorporating entertainment brands such as Paramount, Nickelodeon, MTV and Comedy Central to the sports-themed streaming service.

Viacom’s other media networks – BET, Nick Jr., TV Land and VH1 – will also be included in fubo TV’s base package. An expanded suite of Viacom channels will be available in the premier package, “fubo Extra,” including BET Her, BET Jams, BET Soul, Logo, MTV2, MTV Classic, MTV Live, mtvU, Nick Music, Nicktoons, and TeenNick.

This partnership also enhances fuboTV’s Spanish-language base package, “fubo Latino,” with Viacom’s Telefe and MTV Tr3s networks.

“This is a great opportunity to continue to grow our reach and audiences across the OTT landscape and connect with our fans wherever they consume content,” Tom Gorke, EVP, head of distribution and business development, for Viacom, said in a statement.

Notably, Viacom earlier this year acquired ad-based online TV service Pluto TV for $340 million.

The fubo TV deal offers subscribers access to MTV’s “Jersey Shore: Family Vacation,” Comedy Central’s “The Daily Show,” Nickelodeon’s “Rise of the Teenage Mutant Ninja Turtles,” and Telefe’s “Campanas en La Noche,” among other programs.

“We’re very excited to enter into this strategic partnership with Viacom, which continues to make prescient and aggressive moves in the digital media space,” said Joel Armijo, CFO, fuboTV. “fubo remains singularly focused on offering sports fans a compelling pay-TV alternative with a robust content offering able to serve the viewing needs of the entire household.”

Parks: OTT Video Adoption Growing Among Pay-TV Cord Cutters

With Comcast and Verizon this week reporting ongoing declines in traditional pay-TV subscribers, new data from Parks Associates shows that consumer perception of a poor value proposition in pay-TV remains the top trigger for changing, downgrading, or cancelling services.

Among households that have made pay-TV changes in past 12 months, one-third of cord cutters (33%) and 10% of switchers or cord shavers plan to use paid OTT services as a substitute or alternative for pay-TV.

In addition to subscription streaming VOD services such as Netflix, Amazon Prime Video and Hulu, online TV services include Sling TV, Playstation Vue, DirecTV Now, Pluto TV, Fubo TV, YouTube TV, Hulu with Live TV and Spectrum TV Plus, among others.

“The primary driver for pay-TV cancellation and downgrades continues to revolve around pricing and perceived value,” Brett Sappington, senior director, research, said in a statement. “While some consumers consciously plan to use OTT video services to address the absence of pay-TV content, most consider each offering on its own merits.”

Sappington said the “deeper issue” is in the influence OTT video is having on what consumers consider to be a good value. When video services with good quality are available for under $15, it forces operators to justify an $80 pay-TV bill.

Indeed, consumer Katie O’Shea from Travelers Rest, SC, said she plans to switch to $35 DirecTV Now as soon as she can get out of her $200 DirecTV contract – the latter including broadband service.

“I have 400 channels, most of which I don’t watch or even know what they are,” said O’Shea.

 

FuboTV Approaching 250,000 Paid Subscribers

Live TV streaming service FuboTV approached 250,000 paid subscribers in September, more than double the 100,000 subscribers it had a year ago, according to the company.

FuboTV users on average spent 51 hours per month in the app last month, up from 11 hours in September 2017, the company reported. Also, the average revenue per user hit $40 in September 2018 versus $22 in the same month last year.

“What our team of less than 150 employees has built — from the ground, up, despite our competition having access to tens of thousands of engineers alone — impresses me every day, and it should put the streaming TV industry on notice,” said David Gandler, FuboTV co-founder and CEO in a statement. “Our September results and year-over-year growth are proof of our success. We have and will continue to deliver the most optimal quality experience for our customers and strong value to our investors, as we take the company to the next level.”

Fubo TV Adds WarnerMedia’s Turner Networks

Fubo TV, the sports-centric online TV service, Aug. 22 announced the addition of Turner Networks portfolio of pay-TV channels, including TNT, TBS, CNN, Cartoon Network, Adult Swim, truTV, TCM and HLN. The addtions bring to 75 channels available on Fubo for $39.99 monthly.

“Adding Turner Sports’ programming builds upon our heritage in soccer, while expanding our sports offering with more MLB, NBA, PGA and college sports,” Ben Grad, head of content strategy and acquisition at Fubo TV, said in a statement. “Turner’s news, entertainment and kids brands will continue to drive engagement with viewers, while reinforcing our commitment to offering a premium, high-quality cable replacement.”

Turner’s Boomerang and CNN International are also being added to Fubo Extra, the company’s 90-plus channel tier that is now available at $44.99 for the first month. Additionally, CNN en Español has been added to Fubo Latino.

The above channels are all available to be streamed live, with popular programming to be available on-demand in the coming weeks. All fuboTV subscriptions come with 30 hours of personal cloud DVR storage, two simultaneous streams, and the ability to upgrade to 500 hours and three streams, respectively, with no contracts, cords or set-top boxes required.

The service is available on the Web at www.fubo.tv, and via Android and iOS smartphones and tablets, and TV connected devices such as Amazon Fire TV, Android TV, Apple TV, Chromecast and Roku.

Online TV Services Added 868,000 Subs in Q2

Online TV services such as Sling TV, DirecTV Now, Philo TV and PlayStation Vue added a combined 868,000 subscribers in the second quarter, bringing the total number of virtual MVPD subs to 6.73 million, up 119% year-over-year, according to new data from Strategy Analytics.

Despite this, overall pay TV subs (cable, satellite, telecom and online TV) fell to 93.78 million, breaking a string of two consecutive quarters of growth, according to the report that examines the subscriber bases of 27 public traded and private pay TV operators, accounting for 97% of all pay TV subscriptions.

“While the entire [online TV] segment is growing, AT&T’s DirecTV Now deserves special notice given how rapidly it has grown in a fairly short period of time,” Michael Goodman, director, television and media strategies, said in a statement. “If it continues on its current growth trajectory it will overtake Sling TV as the largest vMVPD in early 2019.”

In comparison, 2Q was not particularly kind to legacy pay TV providers as they lost nearly as many subscribers (973,000) as the prior two quarters combined (-1.16 million). In the quarter, total legacy pay TV subscriptions fell to 87.05 million, down 3.6% from the previous-year period.

“Historically, pay TV in the U.S. has consisted of cable, satellite, and IPTV; however, the introduction of over-the-top pay TV services, commonly referred to as vMVPDs, necessitates a change in our thinking,” said Goodman. “What we have commonly referred to as pay TV (cable, satellite, and IPTV) should now be referred to as Legacy Pay TV, while the definition of Pay TV should include vMVPDs.”