Philo Adds TV One Channel to Service

Philo has added the TV One channel to its lineup of 60-plus channels for $20 per month. It marks TV One’s first vMVPD distribution deal.

Philo subscribers can watch a broad range of real-life and entertainment-focused original programming on TV One, including classic series, movies and music aimed at adult black viewers, including original series “Unsung”; “Uncensored,” a docu-series exploring the intimate lives of some of today’s most notable personalities; “ATL Homicide”; and “Fatal Attraction.”

The addition of TV One will align with Philo’s lineup that includes recently added INSP and getTV, according to the service. Philo’s programming line-up also features networks including A&E, AMC, BET, CLEO TV, Comedy Central, HGTV, ID, Lifetime, MTV, Nickelodeon, OWN, ASPIRE, VH1 and Revolt.

“We are excited to have TV One’s first vMVPD distribution deal be with Philo,” said TV One and CLEO TV GM Michelle Rice, in a statement. “They have been a great partner and continue to demonstrate a commitment to diverse content.”

“What a great time to bring TV One onto the platform as it has been a highly requested network from our customers for quite some time, and we are excited to bring this sought-after content to our subscribers. We’re proud to be the first vMVPD to offer TV One while maintaining our best-in-class price point of $20 per month,” said Philo CEO Andrew McCollum in a statement. “Adding more diverse programming aligns with our continued commitment to our community. The addition of TV One is the result of our appreciation for the importance of Black-owned channels and content perspectives to our overall business objectives, which in turn create opportunities for diverse creators.”

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Philo’s ethos of “TV for Everyone” includes valuing the broader community and recognizing the responsibility to help accelerate progress by actively dissolving systemic inequity across the board, according to the service’s press release.

Initiatives that align with Philo’s Diversity, Equity and Inclusion (DEI) principles include:

  • a partnership with the National Urban League to create a three-part “Power Lunch Series: How to Build Your Brand”;
  • donating $1 million worth of video ad inventory for Black-owned businesses and social initiatives to run spots on Philo free of charge;
  • working with programming partners and the Ad Council to air anti-racism PSAs across the platform; and
  • a commitment to Black-owned content, including TV One.

 

Last month Philo added INSP and getTV networks to their base package. The network getTV features classic shows and Westerns such as “Good Times,” “Walker Texas Ranger,” “Hot in Cleveland” and “Bret Maverick.” INSP features Western and Western-adjacent content such as the original series “The Cowboy Way,” with a seventh season premiering July 29.

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To access Philo, fans can trial and subscribe at philo.com, free for seven days. Philo allows three separate streams on three different devices and everyone who shares the account can create their own profile and have their own sign-in credentials, saved shows and viewing history. Philo features a streamlined interface, intelligent search, and the ability to easily send your favorite shows to friends. All Philo subscribers can watch their favorite shows live from wherever they are in the United States on most web, mobile and TV streaming devices, including Apple TV, FireTV and Roku. Additionally, subscribers can take advantage of 30-day unlimited-storage DVR at no additional cost, and watch thousands of shows and movies on demand.

Philo Adds Starz and Epix to Online TV Service

Online TV service Philo June 16 announced that it is adding MGM-owned Epix and Lionsgate-owned Starz premium options to its programming portfolio. Philo’s standard $20 monthly subscription package includes more than 50 channels, including A&E, AMC, Comedy Central, Food Network, HGTV, ID, Lifetime, MTV, Nickelodeon, OWN, Tastemade, WE TV, among others.

Philo subs can add Epix for $6 monthly, following a promotional $3 fee for three months. Similarly, Starz is available for $9 monthly, after an initial promotion pricing of $5 per month for the first three months when customers subscribe to these services before July 13.

“In these challenging times, we remain committed to offering high-quality entertainment content at a considerable value and with the addition of Epix and Starz we continue to deliver on this commitment,” Mike Keyserling, COO and head of content acquisition at Philo, said in a statement.

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Philo currently allows subs three separate streams on three different devices; everyone who shares the account can create their own profile and have their own sign-in credentials, saved shows and viewing history. Philo features a streamlined interface, intelligent search, and the ability to easily send your favorite shows to friends.

All Philo subscribers can watch their shows live from wherever they are in the U.S. on most Web, mobile and TV streaming devices, including Apple TV, FireTV and Roku. Additionally, subs also have free access to 30-day unlimited-storage DVR.

Summit Explores OTT’s Promise and Pitfalls

The opportunities and pitfalls of the over-the-top market were the leading subjects of the OTT & Video Distribution Summit taking place Aug. 2 in Marina del Rey, Calif.

Consumers are cutting the cord with their cable companies and moving to OTT because of its superior value, including better choice and lower cost.

“Consumers have basically said, ‘We’re paying too much. I don’t want to watch all those channels,’” said panelist Mickey Alpert, president and CEO, Merisco Solutions, and former EVP at Cablevision.

“Cable companies are literally the most hated companies in America,” said keynote speaker Jeff Binder, EVP, home and entertainment, T-Mobile U.S., because they are regional monopolies and don’t have to cater to customers.

In addition to OTT services peeling away video subscribers, another threat to cable is the coming 5G technology, which will be a “game-changing technology,” he said. Cable companies that have been able to lean on broadband fees, even as cord cutters have eschewed buying a video subscription, may find customers can get rid of broadband with 5G.

“There are changes around connectivity that are coming that are probably a bigger story in some ways I think than the story about how the content industry is changing,” Binder said.

“4G changed the way all of you use your phone; 5G is going to change the way all of us use our home as well as our phone,” he said.

For now, though, it’s the chance to get the content they want at a lower price that is drawing consumers to OTT services.

“Customers value choice and flexibility,” said panelist Kathy Payne, head of content acquisition management, Amazon Channels. “At Amazon, we’ve decided we’d like to offer channels a la carte.”

Amazon Channels aggregates such OTT subscription services as HBO, Showtime and Starz. There are more than 150 channels offered in the United States, Payne said, not to mention the hundreds available internationally.

“We’ve heard from customers loud and clear that they like the option to just buy channels a la carte,” she said. “It’s really easy to come in and pick what they want.”

In addition to a la carte there are bundled OTT services that are making a go of it, such as Philo, which started in colleges. “It’s a TV package that hasn’t really been available before. [It’s a service] without paying this huge amount for sports,” noted keynoter Andrew McCollum, Philo CEO.

There are also ad-supported services that offer programming to consumers for free. Roku Channel has aggregated some of those. Roku’s Seth Walters, VP, demand partnerships, called it “our sandbox for creating our most premium ad-supported service on Roku.”

Making a go of it as a new OTT service is a challenge. The number of domestic OTT services has reached more than 200, with the three top players dominating, noted Brett Sappington, senior director of research, Parks Associates.

“It’s Netflix, Amazon, Hulu and everybody else,” he said, adding there is a second tier of services, such as HBO, Showtime, Starz and CBS, that range from 1 million to 5 million subscribers.

A smaller service must differentiate itself and appeal to a niche, rather than try to compete with the big pocketed broad services offered by Netflix and others, he said.

“If you cannot specifically identify who your customers are then you’re probably not going to be successful,” he said.

Offering exclusive or new content helps, as consumers rank new release or original content as most important, according to Parks research.

Many OTT services overlook marketing, and that’s a mistake, Sappington said. Startups “don’t realize the marketing costs involved,” he said.

He praised the marketing efforts of independent film streaming service Fandor, mentioned in a panel at the summit. Panelist Felice Oper, COO of Fandor, said they had sold 290,000 subscriptions through a Costco bundle with subscription theater ticket service MoviePass in just two and a half months.

“It was a very successful transaction,” Oper said. “We’re still working with Costco.”

Keynoter Darcy Antonellis, of Amdocs-owned Vubiquity, talked about the international reach of the OTT business and the services her company supplies it, noting her team is often on a plane.

“We all have to be thinking global,” she said.

“It’s all about understanding where the audiences are,” she added. “It’s an on-demand world, but it has to be in a form and a language for a particular culture.”

She offered an anecdote about a viewing spike at 3 p.m. that they found involved parents waiting for their kids to get out of school. She said the industry must start to understand how to service consumers when and where they need entertainment.

A prominent woman in the industry, she also addressed the dearth of women in the entertainment and technology business. Having mentored girls 8-13, she noticed, “You could almost set your watch, because of peer pressure, when they were gonna shut off STEM [science, technology, engineering and math].”

“It’s a real challenge for our country,” she said. “You don’t want any room as smart as one brain, and you don’t want any room as smart as a collection of similar brains.”

Online TV Service Philo Bows on Apple, Amazon Devices

Upstart online TV service Philo July 10 announced it is now available on Amazon Fire TV and Apple TV, giving subs access to 40 pay-TV channels for $16 per month.

The San Francisco-based service also announced that it has raised more than $40 million from existing investors with AMC Networks, Discovery and Viacom leading the company’s Series C round of funding.

Amazon Fire TV and Apple TV add to the list of platforms Philo is available on, including Roku devices, desktop and Web browsers, iPhones, and Android devices via Chrome (native app coming soon), as well as more than 35 participating TVE apps.

“The expansion onto Amazon Fire TV and Apple TV is a natural extension for us and allows many new people to discover and enjoy Philo, as well as expanding the viewing options for our existing subscribers,” CEO Andrew McCollum said in a statement.

With this new round of funding, McCollum said the service would invest in product features/enhancements and expand marketing efforts. The company is also developing additional innovations, including a socially-driven TV experience.

Currently, Philo subs can watch on up to three different devices at the same time; an unlimited 30-day DVR, an on-demand library, pause any live channel, start programs from the beginning, and watch programs that have aired in the past three days; and a streamlined interface, intelligent search, and the ability to send shows to connected friends.

 

 

Research: OTT Sub Households to Far Outstrip TV Sub Households in 2020

U.S. OTT subscriber households will far surpass TV subscriber households in 2020, according to new data from Convergence Research.

In five years at the current run-rate Netflix will have in the United States as many subscribers as all the the traditional TV access providers combined, according the Convergence’s Brahm Eiley. Amazon Prime at the current run rate will surpass the traditional U.S. TV access providers in terms of subscribers in three years.

However, the average revenue per unit (ARPU) for U.S. TV subscribers in 2020 will still be four times U.S. OTT subscriber households’ ARPU, down from 6 times in 2017.

Convergence has just released its annual 2018 Couch Potato Reports, “The Battle for the American Couch Potato: OTT, TV, Online” and “The Battle for the American Couch Potato: Bundling, TV, Internet, Telephone, Wireless.”

Convergence estimates that U.S. OTT access revenue (based on 55 OTT providers led by Netflix) grew 41% to $11.9 billion in 2017, forecasts $16.6 billion for 2018 and $27.6 billion for 2020.

The firm estimates 2017 U.S. cable, satellite and telco TV access (not including OTT) revenue grew 1% to $107.6 billion ($94.30 per month ARPU) in 2017, forecasts $107.4 billion ($97.90 per month ARPU) for 2018, and $106.9 billion for 2020.

In 2017, the United States saw a decline of 3.66 million TV subscribers and in 2016 a decline of 2.2 million. Convergence forecasts a decline of 3.72 million TV subs for 2018.

The firm reports that 2010 saw the start of the rise in cord cutter/never households, and as of the end of 2017 estimates 32.13 million U.S. households (or 26.1% of households) did not have a traditional TV subscription with a cable, satellite or telco TV access provider, up from 27.56 million (22.6% of households) at the end of 2016. Convergence forecasts 36.76 million (29.6% of households) will be cord cutter/never households by the end of 2018.

Meanwhile, 2017 saw U.S. residential broadband subs surpass U.S. TV subs, growing to 96.95 million. Convergence estimates 2.33 million U.S. residential broadband subs were added in 2017 (2.66 million in 2016) and revenue grew 7% to $56.8 million; the firm forecasts 2.57 million additions and 6% growth to $60.5 billion for 2018.

“The gloves are off,” commentary in the report reads. “The TV-movie Industry is being reconstructed from the inside and by the outside, as programmers now directly compete against their traditional TV access and independent OTT buyers that rival them in terms of content spend. Amazon, Apple, DAZN, Facebook, Google and Netflix all have the money muscle to finance their own productions or outbid on programming including major sporting franchises.”

Because the OTT services are acting more like studios and vying for top content, traditional content owners may fight back, the commentary reads.

“We expect especially for the U.S. market going forward fewer content deals between programmers and independent OTT providers: 2017 saw Disney choose not to renew with Netflix and embrace OTT, HBO not renew with Amazon in the U.S., Hulu (which is spending more on content on a per U.S. subscriber basis than Amazon or Netflix) continue to bolster its offerings, compete more directly against TV access providers, and A+E, AMC, Discovery, Scripps, and Viacom back supply Philo,” the firm commented. “The traditional TV ecosystem does not show decline ‘yet’ except for TV subscribers. TV access players continue to raise prices (ARPU is growing but we forecast TV access revenue decline going forward), and programmers have kept up increases in programming fees and advertising rates, but this architecture cannot last in the long run.”

Sling TV Tops 2.2 Million Subscribers

Dish Network Feb. 21 announced that its Sling TV unit ended 2017 with more than 2.21 million subscribers – up 47% from 1.5 million subs at the end of 2016.

Launched in early 2015, Sling TV was the first standalone online TV service, offering access to 20 pay-TV channels priced from $20 monthly without a contract.

The service was the first to offer ESPN outside the pay-TV ecosystem. The concept was so new (Disney licensed ESPN as an experiment) that a blank screen aired during commercial breaks – underscoring marketers’ unfamiliarity with the distribution channel.

Today, online TV represents an alternative to cord-cutters and ongoing erosion of pay-TV households in the Netflix-fueled, over-the-top video era.

Other online TV platforms include PlayStation Vue ($40-$75), DirecTV Now ($35-$70), Spectrum TV Plus ($30), YouTube TV ($40), Hulu With Live TV ($40), FuboTV ($45) and Philo TV ($16).