Discovery Joins FuboTV

Online TV service FuboTV continues to transition from its original soccer roots.

The service June 18 announced a new, multiyear carriage agreement with Discovery, bringing 13 networks to the live-TV streaming service in the coming weeks.

The deal extends the previous pact between the companies that began with the former Scripps Networks Interactive (acquired by Discovery) and included carriage of their five networks, including HGTV and Food Network.

“This agreement further exemplifies the viewer affinity for our beloved brands and talent, and fuboTV’s commitment to offering high-quality, world-class content to customers,” Eric Phillips, president of affiliate distribution at Discovery, said in a statement.

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Discovery Channel, TLC, Investigation Discovery, Animal Planet, OWN: Oprah Winfrey Network and MotorTrend will be available on the streaming service’s base package, fubo Standard, joining HGTV, Food Network and Travel Channel, which are already available on the service.

At the same time, an expanded suite of Discovery networks, including Science Channel, Destination America, Discovery Family, American Heroes Channel, and Discovery Life, will be added to fuboTV’s add-on package, fubo Extra ($5.99/month for 30+ channels) joining DIY Network and Cooking Channel.

Additionally, Discovery en Español and Discovery Familia will be available on fuboTV’s Spanish-language package, fubo Latino ($24.99/month for 20 channels), and the Latino Plus add-on package ($7.99/month for 15 channels).

In addition to bringing subscribers each network’s live linear feed, the agreement also includes a library of on-demand Discovery content, bringing fuboTV’s VOD library to over 60,000 movies and TV episodes per month.

“We are excited to be adding more Discovery brands alongside their lifestyle networks, which we already carry,” said Joel Armijo, CFO, fuboTV. “These brands, including HGTV and Food Network, are among our top performing entertainment networks, and this agreement allows us to extend our partnership for years to come. We expect to be similarly successful with our new Discovery networks.”

Video Streaming Widens Appeal Over Pay-TV Among Telecom Customers

Video streaming expanded its lead over subscription TV service in terms of customer satisfaction, rising to a score of 76 on the American Customer Satisfaction Index’s 100-point scale.

According to the ACSI Telecommunications Report 2018-2019, subscription TV service stagnated at 62, tied with internet service providers for last place among all industries tracked by the ACSI — subscription TV, ISPs, fixed-line telephone service, video-on-demand service and video streaming service.

Video streaming topped all industries tracked.

“Video streaming once again proves itself to be the best of the telecom industries in customer satisfaction,” said David VanAmburg, managing director at the ACSI. “Traditional telecom providers have tried to step up their game, but they’re not providing original content the way video streaming is, and in part they suffer guilt by association — if customers aren’t satisfied overall with Comcast, they’re probably going to ding Comcast’s on-demand service too.”

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Among video streaming services, Netflix secured first place at 79 after sharing the lead with Sony’s PlayStation Vue and Amazon Twitch the previous year. Netflix ranked at the top for original content among all streaming services, according to the ACSI. Sony’s PlayStation Vue landed in second place at 78, followed by the Microsoft Store at 77. Hulu stepped up to match Amazon Prime Video and Apple iTunes at 76. Five services clustered at 75: CBS All Access, Google Play, Amazon’s gaming platform Twitch, Walmart’s Vudu and Google’s YouTube. Dish Network’s Sling TV was the most improved, meeting HBO at 74. Starz matched the combined score of smaller platforms at 72, while Showtime followed close behind at 71. AT&T’s DirecTV Now fell to 69, ahead of only Sony Crackle, which remained unchanged at 68.

For the past six years, customer satisfaction with subscription TV has languished in the mid-to-low 60s, according to the study. AT&T’s U-verse TV held the lead for subscription TV at 69, followed by Verizon’s Fios at 68 and Dish Network at 67. AT&T’s satellite TV service DirecTV came in at 66, Altice’s Optimum tallied 61, and Charter’s Spectrum came in at 59 to tie with Cox Communications. Frontier Communications and Comcast’s Xfinity came in at 57. Mediacom followed closely at 56. Altice’s Suddenlink tumbles to the bottom of the category at 55.

Customer satisfaction with video-on-demand service slipped to an ACSI score of 67 as viewers continue to turn toward streaming services such as Netflix and Hulu, according to the study. AT&T’s U-verse TV service held the lead a year ago, but this year shared the top spot with Verizon’s Fios at a score of 72. Satellite provider Dish Network dropped to 71 but remained just ahead of DirecTV, unchanged at 70. Frontier Communications debuted in the category with a score of 67, in line with the industry average. Three decliners met at 66: Cox Communications, Altice’s Optimum and Comcast’s Xfinity. Charter’s Spectrum remains unchanged at the bottom of the category with a 64.

Unchanged at a score of 62, ISPs remain at the bottom of the ACSI rankings. Most ISPs are still falling short of providing good service at an affordable price, according to the ACSI release. Verizon’s Fios was stable at the top of the category with an ACSI score of 70, but AT&T Internet closed in at 69. Altice’s Optimum fell to 63 but remained the leader among coaxial providers. Meanwhile, Comcast’s Xfinity inched closer to the industry average at 61. Cox Communications tallied 60, tying Altice’s Suddenlink. Charter’s Spectrum and CenturyLink came in at 59.

Vidgo TV Seeks to Bow Pre-Paid Service in the U.S.

Taking a page from pre-paid phone cards, Vidgo TV plans to launch online TV service in the United States targeting users with little or no credit.

Speaking May 15 at the Pay TV Show in Denver, CEO Shane Cannon told attendees the online TV service would appeal to so-called “under banked” consumers with poor credit.

The platform — similar to online TV services such Sling TV, PlayStation Vue, DirecTV Now, YouTube TV, Fubo TV and Spectrum TV Plus — would be available via apps for smartphones and tablets, as well as Roku, Google TV, Android TV, Amazon Fire TV. Users could also cast the channel from their Internet browser to the big screen using Wi-Fi.

The company based in Atlanta launched a $24.95 monthly Latino version of Vidgo TV last winter featuring Univision, TV Azteca and beIN Sports programming, among 30 channels. As expected, Cannon told attendees 70% of Latino users stream sports.

In an interview last year Cannon said build-up of Vidgo TV has taken years to develop and ready for market. It is currently in beta launch.

“It takes that long to integrate into these platforms” Cannon told FierceVideo. “We’ve spent two-and-a-half years building this distribution model.”

PlayStation Vue Adds Local Fox, ABC TV Stations

Sony’s online TV service PlayStation Vue has added 16 local television stations to its channel portfolio, including Fox and ABC affiliates.

With most online TV services such as Sling TV, Fubo TV, DirecTV Now, YouTube TV, Hulu with Live TV and Spectrum TV Plus offering the same pay-TV channels 00 including premium channels HBO and Showtime, Starz and Cinemax – increasing points of differentiation involve featuring local TV stations.

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New ABC stations on Vue include: WATM ABC 23 in Altoona & State College, Pa.; KYUR Anchorage, Juneau, Fairbanks, Alaska; WTEN News 10 in Capital District, NY; WAOW ABC 9 in Central Wisconsin; WCTI ABC 12 in Coastal North Carolina; WOAY in Eastern West Virginia; KAEF ABC 23 in Eureka, Calif.; KTXS 12 in Midwest Texas; KBMY 17 in Minot-Bismarck Area; KRCR ABC 7 in Northern California; WBND ABC 57 in South Bend, Elkhart, Ind.; WTXL ABC 27 in Tallahassee, Fla. And KTKA in Topeka, Kan.

Fox stations include: WZAW in Central Wisconsin; WVFX Fox 10 in Clarksburg, WVa., and KIIT Fox 11 in North Platte, Neb.

Philo TV Ups Basic Subscription Price 25%

Online TV service Philo TV is ending its longstanding $16 monthly plan (with pay-TV 45 channels) for its $20 plan with 58 channels, beginning May 6 for all new subscribers.

Subscribers who join the service before May 6 and existing subs will not see immediate fee hikes to their basic plans but will instead be grandfathered into the new price point over time.

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CEO Andrew McCollum made the announcement in a post on the service’s website.

“Since we launched 18 months ago, most of the other companies in our space have raised their prices, in some cases multiple times,” McCollum said. “We didn’t want to do that. Still, when we looked at all of the costs of operating Philo — which increase over time — consolidating into a single $20 package was the best way for us to maintain the same offering we have today without raising prices for everyone or having to cut back in places we strive to excel, like customer support.”

The price hikes comes as Hulu with Live TV raised its prices, followed by Google-owned YouTube TV. DirecTV Now, Sling TV and PlayStation Vue have all raised basic subscription plan pricing in recent months.

Philo is also reportedly working on technology that would allow users to share links with friends and watch programming concurrently from different locations.

Doing so could elevate social media interactions between users – a driving point for user retention and marketing. While the app has been completed, McCollum said Philo is waiting to launch it.

“We want to balance creating more options with making sure people don’t feel like they’re being coerced into stuff they don’t care about,” McCollum told TechCrunch earlier this year.

 

Poll: 44% Say Netflix Vital Source of Video Content

While Disney rolls out its branded “Disney Plus” subscription streaming video service for investors, new data from Hub Research finds that 44% of consumers consider Netflix an important source of content.

The research firm’s “The Evolution of Video Branding” study found that the vast majority of respondents from a January poll of 1,692 consumers in the United States chose Netflix over other over-the-top video services for their video content.

Other entertainment sources include CBS (29%), ABC (28%), NBC (28%) and ESPN (24%).

Among younger respondents (16-34 years-old), 59% opted for Netflix, followed by Hulu (26%), ESPN (24%), HBO (17%) and Amazon Prime Video (17%). Among older respondents CBS ranked first with 41%, followed by ABC (37%), NBC (37%), Netflix (35%) and Fox (26%).

Notably, the report found that while respondents were familiar online TV services such as Hulu with Live TV, YouTube TV, DirecTV Now, Sling TV, and PlayStation Vue, 80% claimed they were unaware of what each platform’s value proposition was.

Indeed, among younger respondents, simply branding video content “original” was enough to make them consider streaming it. And 69% considered Netflix the best choice for original fare.

“It would be easy to explain Netflix’s strong position as a must-have TV source by citing the sheer variety of its content,” Peter Fondulas, principal at Hub and co-author of the study, said in a statement. “Then again, the same can be said of the variety of shows on broadcast networks. Whether it’s a function of a higher level of show quality or of strong branding — or both — Netflix has managed to set itself apart from networks that offer a similarly wide variety of genre choice.”

Report: Younger Demos Prefer Online TV

The rise in popularity of standalone online TV services such as Sling TV and DirecTV Now is largely due to age demographics, according to new data from Leichtman Research Group.

The firm found that found that 18-44 year-olds accounted for 71% of respondents from an online survey of 6,715 households in the U.S. that had online TV services, which included Hulu with Live TV, YouTube TV, Charter Spectrum Choice, Fubo TV and PlayStation Vue. Overall, 16% of adults ages 18-44 currently have online TV service – compared to 6% of adults older than 45.

Among current online TV subs, 43% transitioned from a cable, satellite or telecom pay-TV service, while 17% switched from another online TV service, and 15% were non-subscribers to any type of pay-TV service.

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The report also found that among Madison Ave.’s coveted 18-34 demo, 42% had online TV, 26% had traditional pay-TV and 33% had no pay-TV service.

Nearly 75% of online TV subs claimed to be “very satisfied” with their service, but 20% said they are “very likely” to switch to another online TV service in the next six months.

Among online TV subs, 93% also have an SVOD service such as Netflix, Amazon Prime Video and/or Hulu, compared to 71% of traditional pay-TV subs, and 74% of non-subs.

Notably, 78% of online TV subs consume the product at home, compared to 82% of HBO Now subs and 88% of Netflix viewers.

“[Online TV] services were first introduced about four years ago, and the market for these lower-cost [monthly] services is still growing and evolving,” Bruce Leichtman, president and principal analyst for LRG, said in a statement. “Consumers continue to experiment with the various services, along with other traditional and streaming options, to find the best combinations of video content and cost.”

 

 

NPD: Online TV Reaches 15% U.S. Household Penetration

Spurred by the influx of online TV services and connected TVs, direct-to-consumer channel adoption has grown three-fold over the last three years to reach 15% of U.S. households, according to new data from The NPD Group.

DTC video subs are defined as current subscribers to any à la carte TV channel that does not require a pay TV subscription from a cable or satellite TV provider. Excludes content aggregators such as Netflix, Hulu and Amazon Prime.

While nearly 87% of DTC subscribers say they are likely to add channels in the next year – doing so to replace linear pay-TV is not among the leading reasons why.

NPD conducted a survey Feb. 6-11, 2019 of 1,000 domestic consumers, aged 18+ from diverse regions and demographical backgrounds.

In fact, cord-cutting, or pay-TV subs looking to replace cable, ranks just 16th out of 20 reasonscited, according to the Direct-to-Consumer Video Online Study.

A majority of DTC subs (66%) do so in addition to the traditional cable or satellite TV bundle. Low cost to entry is driving adoption and that is the top reason cited for subscribing to à la carte TV channels, with the ability to subscribe only to the channels desired.

“It is imperative for players in this space to understand where consumers prefer to sign up,” analyst John Buffone said in a statement. “Consumers can now subscribe to only the channels they want and get the benefit of a single billing vendor and user interface.”

NPD said online TV market growth will come from both current subs adding channels and new subs. Looking at the combined group of current and prospective subs with a positive likelihood to sign up in the next 12-months, the most likely destination for subscribing to online TV is Amazon Prime Channels (31%), followed by the TV channel’s app (26%).

“[Online TV] aggregators such as Amazon, Roku, Hulu with Live TV, Sling TV, DirecTV Now, YouTube TV and PlayStation Vue, stand to gain a lot by garnering subscription revenue for managing [their] channel transactions,” Buffone said.

 

Hulu Online TV Service Tops 2 Million Subs

Hulu with Live TV, the subscription streaming video service’s separate online TV platform, has reportedly topped two million subscribers.

Launched in May 2017, Hulu’s online TV service ranks second in subscribers behind Dish Network’s pioneering Sling TV with 2.4 million (at the end of 2018), AT&T’s DirecTV Now (1.6 million) and YouTube TV (1 million). Sony’s PlayStation Vue reportedly has more 500,000 subs.

Hulu, which is co-owned by Disney, Fox, Comcast and WarnerMedia, continues to grow subscribers while DirecTV Now’s highly-publicized $39.99 service lost 267,000 subs in the most-recent fiscal period. AT&T attributed the decline to raising the monthly fee $5 to $44.99, among other factors.

Sling TV ushered in the online TV market in 2015 as a response to cord cutting and burgeoning SVOD services such as Netflix. It was the first service to offer standalone access to ESPN and other pay-TV channels traditionally tethered to big bundle subscriptions.

Disney, which is in the final stages of gaining regulatory approval of its $71.3 billion acquisition of 20th Century Fox, would become majority stake holder in Hulu and its 25 million subs.

The media giant reportedly is considering acquiring WarnerMedia’s 10% stake as the latter finalizes launching its own over-the-top video service in the fourth quarter along with Disney’s branded Disney+ SVOD service.

 

 

Pluto TV Bows Service in Germany, Austria

Pluto TV, the Los Angeles-based ad-supported online TV platform, has begun streaming operations in Germany and Austria. The launch follows a similar move in the United Kingdom in October through a collaboration with satellite TV operator Sky.

Sky, which was recently acquired by Comcast, is an investor in Pluto TV, along with ProSiebenSat.1 in Germany.

“The current timing of the launch of Pluto TV in Europe, especially in the German-speaking market, is ideal to harness the great potential for the distribution of linear video offerings via the Internet,”Olivier Jollet, managing director Europe, said in a statement.

Based in the company’s Berlin office, Jollet said the online TV platform’s marketing approach is to underscore the platform’s simplicity at a time when he says typical households subscribe to upwards of three or more – often redundant – over-the-top video services.

“[Consumers] are increasingly losing interest in this,” he said.

Pluto TV launched in 2016 as an app on Sony PlayStation about a year after Dish Network’s groundbreaking rollout of Sling TV – the first standalone online TV service offering pay-TV channels without a long-term contract.

The online TV market now includes PlayStation Vue, AT&T’s DirecTV Now, YouTube TV, Hulu with Live TV and Charter’s Spectrum TV Plus, among others.

Last month, Pluto inked a licensing deal with Discovery for channels such as Discovery Channel, HGTV and Food Network, Animal Planet, ID, Discovery Life, Science Channel, and TLC, among others.