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).