TiVo: Ad-Supported VOD Gaining Traction

The subscription streaming video market is getting crowded. Pioneering behemoths like Netflix, Hulu and Amazon Prime Video dominate, spending tens of billions of dollars on original content to lure and retain subscribers in the face of newcomers Apple TV+, Disney+, HBO Max, Peacock and Quibi, among others.

As a result, ad-supported VOD content is attracting greater market share, according to new data from TiVo, which found the average U.S. household had 6.9 streaming services in the fourth quarter 2019, up from five services during the same period in 2017.

At more than 73%, YouTube remains the most popular source of free streaming content, followed closely by Facebook (62.3%). Free video from network sites has skyrocketed in popularity (up 31.9% from the previous-year period), while Crackle (+2.4%), Tubi (+3.8 %), The Roku Channel (o.2%), Xumo, Vevo (+5.4%) and Twitch (+3.3%) also gained viewers.

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Indeed, 37.5% of respondents from a fourth-quarter online survey of 6,145 participants in the United States and Canada, said they were “very satisfied” with AVOD, up from 35.4% during the previous-year period. That compared to 33.1% who said they were “very satisfied” with SVOD, down from 33.5% last year.

As expected, the report found that most respondents still find new movies and TV shows to watch through SVOD services Netflix (34.7%) and Prime Video (25.2%), followed closely by free YouTube videos (23%) and pay-TV (21.2%).

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For TV series that consumers watch regularly, it’s a different story. TiVo said pay-TV dominates, with 35% of respondents indicating they find new episodes of their regularly watched series through cable or satellite TV.

Notably, respondents cited transactional VOD services such as iTunes, Amazon, Redbox On Demand, Vudu, and Google Play, among others, as go-to platforms in search of new movie content. That was ahead of platforms such as Hulu, Showtime OTT and Starz.

Another 54% of respondents say they find out about new shows or movies from commercials or ads that run within their current pay-TV or AVOD content.

“Consumers are increasingly ready and willing to adopt innovative (yet simple) technology, devices or services that can serve as guides on their quest to find what they want to watch,” read the report. “They need technology that adds value to their lives, whether by helping them efficiently locate the content they’re looking for or by leading them to the video pathways that suit their needs and desires.”

TiVo Adds Content Partners to Streaming Video Service

TiVo Jan. 8 formally announced an additional 23 new content partners for its ad-supported TiVo+ video network. The new channels join the current lineup of 26 streaming channels available to TiVo customers.

New content partners include USA Today, Cheddar, Top Stories by Newsy, Sportswire and MMA Junkie. Lifestyle channels include Condé Nast, Tastemade, Latido Music, Mobcrush and Revry.

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The Condé Nast partnership will bring programming from Glamour, Bon Appetit, Traveler, GQ and Wired, while the Tastemade partnership will bring Food, Travel and Home Design programming.

The comedy genre will expand to include “Funny or Die” and “The Chive”. TiVo+ Kids, movies and TV categories will now include “Mr. Bean & Friends,” “Kabillion,” “Law & Crime,” “American Classics,” “OMG! Network” and “Reel Truth.”

TiVo+ is attempting to join a growing ad-supported VOD market that includes The Roku Channel, Amazon’s IMDb TV, Pluto TV, Tubi, Shout! Factory TV and Crackle, among others.

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“In a world where people have more entertainment subscriptions than they can count on one hand, TiVo is working to bring everything together in one place for viewers,” CEO Dave Shull said in a statement.

 

AVOD: Quiet Before the Storm

With the crush of new subscription streaming VOD services entering 2020, new data from Ampere Analysis suggests ad-supported VOD, or AVOD, will build scale and roll-out internationally this year.

While AVOD use within the United States remains small compared to SVOD (from 3% to 6% of domestic online households), London-based Ampere believes this to be merely the quiet before the storm.

Major AVOD players include Pluto TV, Tubi, Crackle, Vudu, IMDb TV, Roku TV, Xumo TV, Shout! Factory TV and pending Peacock from NBC Universal, which will also be SVOD, among others.

Specifically, the researcher contends AVOD is filling the niche previously targeted by SVOD: catalog content. As SVOD services such as Netflix, Amazon Prime Video and Hulu migrate toward original programming, AVOD streams older content for free — with advertising.

The proportion of Netflix’s catalog more than five years old fell from 50% in Sept. 2015 to 35% in Sept. 2019 — a trend that will continue across the sector. In the meantime, the long tail of older content has been embraced by the new AVOD services, who average nearly 80% of their catalog at five years old by title count, and in the case of Crackle, 70% of content is over 10 years old.

This demand for older content not only provides a new market for licensing deep archive, but also offers a boon for distributors and sales agents, according to Ampere.

“AVOD is coming, and it’s going to make its mark on the VOD landscape rapidly,” Guy Bisson, director at Ampere, said in a statement. “Its impact will be felt not just by the entertainment industry, but by advertising too as the shift that has already disrupted the subscription television market sweeps across the free-to-air sector.”

As advertisers rush to support AVOD, online video advertising will inevitably increase as the platforms spread globally in 2020. To date this form of advertising has remained relatively small — even in developed markets like the U.S. where 27.2% of online ad spend is on video, and in Canada where it’s just 5.85%.

Ampere expects the rush to AVOD to be supercharged by some of the studio direct models such as Disney’s Hulu and Peacock, which are expected to adopt a hybrid SVOD/AVOD model.

“AVOD services are treading a well-trodden path with an early reliance on older content, but as their market position grows, we can expect them to begin acquiring newer content and even moving into original production activity as they battle for eyeballs in an increasingly crowded market,” Bisson said.

Oh, What a Year — With Transformational Changes, Home Entertainment in 2019 Got Smaller — and Bigger

The phrase “transformational change” has been used so much it’s become a cliché — and yet there really is no better way to describe what happened in not just home entertainment, but also the entertainment industry overall, in 2019.

The completion in March of the Walt Disney Co.’s purchase of 20th Century Fox saw the number of major studios drop to five from six. Some of the home entertainment sector’s most familiar faces were suddenly gone, including Mike Dunn, the longtime leader of Fox’s home entertainment unit, and Danny Kaye, the visionary behind Fox Innovation Labs. Later, in the summer, Janice Marinelli, Disney’s home entertainment chief, also exited in a surprise move, given that she had opened an office on the Fox studio lot and was reportedly screening staffers.

In November, two new streaming giants emerged to take on longtime leader Netflix, Apple TV+ and, most significantly, Disney+.

Meanwhile, a new flavor of streaming gathered momentum: free to consumers, paid for by advertisers. Among the heavyweights jumping into what’s known as “AVOD” are ViacomCBS, with its Pluto TV acquisition, and Comcast Corp., which in December was reported to be in advanced talks to acquire Xumo TV, which boasts more than 140 digital channels of programming across 12 genres, including sports, news, kids and family entertainment.

The overall impact of all these developments on home entertainment: It got smaller — and bigger.

Smaller, because the traditional transactional business model that has defined home entertainment since its birth more than 40 years ago has increasingly come under fire, with subscription streaming, in particular, gobbling up more and more consumer attention — and dollars — that previously would have gone toward buying or renting movies, either on disc or through digital retailers.

But also bigger, because streaming, in its various incarnations, is now widely accepted as being part of home entertainment — which is now broadly defined as people watching what they want, on demand. There’s even a new name for all of this — direct-to-consumer — which was first adopted by Disney and is now used interchangeably with “home entertainment.”

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Bob Buchi, president of Paramount Home Entertainment, says 2019 “was the year of transition.”

“From media mergers and changing consumer viewing habits to the explosion of streaming services, the landscape has shifted dramatically,” he says.

The Nov. 1 launch of Apple TV+ marked the tech giant’s entry into the content business, with nine original series. One of them, “The Morning Show,” picked up several Golden Globe nominations from the Hollywood Foreign Press Association (HFPA), a first for a new streaming service.

Less than two weeks later, Disney launched its much-ballyhooed Disney+, with a full menu of in-demand movies and series — including the “Star Wars” spinoff “The Mandalorian.” Disney said more than 10 million people signed up for the service in the first 24 hours. By the end of November, the service had 24 million subscribers, according to estimates from Wall Street firm Cowen & Co. (Netflix as of October had more than 60 million domestic subs.)

“It’s an exciting time and we believe we have a unique and significant role to play,” Ricky Strauss, president of content and marketing for Disney+, told Media Play News on the eve of the service’s launch. “Disney+ will compete based on the unparalleled strength of our brands, the quality of our intellectual property, and expertise in high-quality video streaming.”

And yet industry insiders insist that despite streaming’s growth, there’s room for transactional — largely because new theatrical films, particularly the blockbusters, aren’t available on SVOD services. This distinction has prompted FandangoNow, one of the big digital retailers, to boldly proclaim on its home page, “New releases not on Netflix, Amazon Prime or Hulu subscriptions.”

“Because we’re the first point of entry for fans to see movies in theaters, and first at home, we’ve seen a significant growth among consumers who are excited to own movies as soon as they’re available digitally,” says Cameron Douglas, head of FandangoNow. “Fans looking for high-quality content right out of theaters, including 4K HDR movies, don’t have to wait until they arrive later on subscription services, and innovative deals like rental binge bundles and the availability on new platforms keep them coming back to transactional digital services like our own.”

“New movie releases continue to be sought out by consumers during the first window in the home amidst the frenzied buzz around new streaming services,” adds Michael Bonner, EVP of digital distribution for Universal Pictures Home Entertainment. “While there’s no denying the landscape is becoming more competitive, this business has successfully co-existed with abundant availability of non-transactional content for a long time and we expect it to continue to do so.”

“There is space — and demand — for both transactional content as well as streaming — just as there is consumer interest in both digital and physical,” says Amy Jo Smith, president and CEO of trade association DEG: The Digital Entertainment Group.

Beyond new releases, streamers have a limited selection of older films and TV shows, particularly with their increased focus on original content.

“For many consumers, their streaming options are good enough,” says Mark Fisher, president and CEO of home entertainment trade association the Entertainment Merchants Association (EMA). “But just like the days when the first video rental stores opened and made it easy for the consumer to watch anything they wanted to watch when they wanted to watch it, online VOD retailers offer that same opportunity to the consumer. I know that every time I see a montage of old movie clips, I’m driven to watch titles that aren’t new releases — and these are titles not readily (or easily) found on the streaming services.”

Sales of digital movies, in particular, were a bright spot, with consumer spending up nearly 7% in the first nine months of 2019, according to trade association DEG: The Digital Entertainment Group.

“We’ve continued to see growth in EST (electronic sellthrough) — both in our new releases and in our catalog,” says Jason Spivak, EVP of distribution, for Sony Pictures Home Entertainment. “Certainly the enhanced consumer experience enabled by Movies Anywhere is part of that, as is increasing consumer connectivity in their homes. EST continues to gain prominence in our marketing planning, release data scheduling, and retailer partnerships.”

Ron Schwartz, president of Lionsgate Home Entertainment, says Lionsgate EST revenue grew 30% this year, “four to five times faster than the overall industry. With increased collaboration between studios and retailers, and more offerings such as dynamic bundling, customers are starting to build their lockers up to 10-plus titles. Recent data shows that once a customer gets to between 10 and 12 titles in their locker, their EST purchasing behavior doubles.”

In addition to selling movies, digital retailers also offer them for a la carte streaming, the digital equivalent of a physical movie rental. Redbox remains the only retailer to offer both digital and physical rentals, the former through an e-commerce site and the latter, through a network of more than 40,000 kiosks situated outside (or inside) large retailers like Walmart, convenience and drug stores, and other retailers.

“Redbox owns the transactional space with more transactions across physical and digital formats — for rental and purchase — than any other transactional provider,” says Redbox CEO Galen Smith.

In 2019, he said, Redbox expanded its offering of 4K Ultra HD discs into new markets, and stepped up promotions as well, with its Back to the Movies campaign and a joint Dinner & A Movie offering with meal delivery service DoorDash.

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In addition, Redbox Entertainment, a new content acquisition and production division, has further transformed Redbox into a multi-channel content provider and programmer. Launched in October, the new division is headed by Marc Danon, who spent eights at Lionsgate, most recently as SVP of acquisitions and business development.

Disc sales in 2019 continued to decline in the low double digits, with DEG reporting that in the first nine months of the year, combined 4K Ultra HD, Blu-ray Disc, and DVD revenues were down 18.5% to an estimated $2.3 billion — exactly half what they amounted to five years ago, in 2014.

But studios continued to support the disc. And while a trend among smaller titles is to release them only on DVD and digital, bypassing Blu-ray Disc, major new releases are still getting significant marketing campaigns behind them, particularly for the 4K Ultra HD editions. The UHD disc also made headlines last August when the UHD Alliance, along with leaders in consumer electronics, the Hollywood studios and members of the filmmaking community, announced collaboration on a new viewing mode for watching movies called “Filmmaker Mode,” designed to reproduce the content in the way the creator intended. Filmmaker Mode, bowing next year, will allow viewers to enjoy a more cinematic experience on their UHD TVs when watching movies by disabling all post-processing (e.g. motion smoothing, etc.) so the movie or television show is displayed as it was intended by the filmmaker, preserving the correct aspect ratios, colors and frame rates.

“For the time being, 4K UHD is still the gold standard for at-home content,” says Jim Wuthrich, president of Warner Bros. Home Entertainment & Games. “With hardware costs dropping and television functionality such as Filmmaker Mode being made available next year, there is still a great value proposition in owning content in 4K UHD, both physically and digitally, as is still represents the best home-viewing experience.”

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“As evidenced by the exceptional growth of 4K UHD to date, it is clear that there is a sizable appetite for premium high-definition products, and that format plays a meaningful role in boosting retail traffic,” says Eddie Cunningham, president of Universal Pictures Home Entertainment.

Retail partnerships are key, Cunningham adds. “Given that physical and digital transactional consumption rates are remaining steady year over year and that disc purchases are making up more than half of that consumption, there’s no question that movie buyers continue to be vitally important to retail,” he says. “At no other time in our industry has it been more critical to ensure that we work together to retain the loyalty of movie consumers, creating urgency for our products and delivering the utmost value, quality, accessibility and convenience possible.”

 

Comcast Eyeing Ad-Supported VOD

With ViacomCBS staking much of its over-the-top video future on Pluto TV, the ad-supported video-on-demand platform, Comcast reportedly is considering joining the AVOD market that also includes Tubi TV.

The Wall Street Journal, citing sources, reports the cable giant is in advanced talks to acquire Xumo TV, the Irvine, Calif.-based service offering more than 140 digital channels of programming across 12 genres, including sports, news, kids and family entertainment. Content partnerships include CBSN, People TV, College Humor, and History, as well as the PGA Tour, among others.

The Xumo app is currently available on Roku and embedded in several smart TVs from Samsung, Panasonic and Vizio — the latter based in Irvine as well.

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Comcast unit NBC Universal is launching SVOD platform — Peacock — in April, 2020. Acquiring Xumo could help the cabler sustain its pay-TV legacy through an ad-based business model in the rapidly evolving digital ecosystem.

Comcast isn’t commenting on the scuttlebutt, but CFO Michael Cavanagh, speaking Dec. 9 at the UBS 46th Annual Global Media and Communications confab in New York, said the company was entertaining the AVOD market in response to a SVOD landscape dominated by Netflix, Amazon Prime Video, Hulu and Disney+.

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“We think we’ve got a pretty special opportunity [with AVOD], when you think about the relatively underserved segment of premium content ad-supported,” Cavanagh said. “Our work shows us that consumer demand is there.”

Indeed, since ViacomCBS acquired Pluto earlier this year for $340 million, the company has made the platform centerpiece to its global digital distribution strategy.

“Our focus on an investment in Pluto is evident,” Bob Bakish, CEO of ViacomCBS, said on the recent fiscal call. “In Q4 alone, Pluto launched 43 new channels and last month, Pluto Latino added 11 new channels given the platform of total 22 channels with over 4,000 hours of Spanish and Portuguese language programming.”

New AVOD roll-outs and improved ad-tech are expected to drive U.S. online video advertising revenue to $27 billion in 2023, according to IHS Markit Technology.

“The AVOD goldrush is here, and it represents a prime opportunity for service providers, new AVOD entrants and content companies,” said senior research analyst Sarah Henschel.

 

Pluto TV Adds Six Channels in U.K.

ViacomCBS’ ad-supported online TV service, Pluto TV, has added six channels in the United Kingdom, bringing to 80 channels now offered on the digital platform.

Launched in 2013, Pluto TV was acquired by Viacom earlier this year for $340 million as part of the media company’s aggressive digital distribution push and competitive alternative to Netflix, Amazon Prime Video and Hulu.

Olivier Jollet, managing director Europe at Pluto TV, said the online service has “come a long way” since launching in the U.K. in late 2018.

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“We are looking forward for our audience to ending their year with our vast programming and kick-start the new decade with us,” Jollet said.

The new channels include:

Pluto TV Action, which brings adrenaline filled block­busters, energetic stars, and a strong dose of high-octane excitement.

Pluto TV Sci-Fi, which airs science fiction and fantasy movies that present visions of the future and apocalyptic worlds, as well as the best TV series in the galaxy, available at warp speed, 24 hours a day.

Pluto TV Thrillers, a dedicated thriller channel that does not venture into pure horror — it is for those who prefer chills over scares.

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Get.Factual, a channel that takes its audience knee-deep into the unknown. As a dignified finish to a year of providing Pluto TV viewers with a robust offering of unscripted content, Get.Factual brings documentaries with thrilling perspectives about history and culture. Secrets will be exposed, and no question will be left unanswered as this channel covers topics like the story of Australia, the Middle Ages and the ascent of civilization.

Pluto TV Family, which joins Pluto TV’s growing line-up for kids and family, offering animated adventures to classic comedies.

Strongman Champions League World Series is the world’s biggest Strongman league. The strongest and best athletes in the world compete against each other over the course of 16 stages throughout the year. Series 15 and 16 of Strongman will get things started on December 23rd with more series added later.

ViacomCBS Dealing With OTT Video Largesse

Until this year, Viacom had scant over-the-top video product — Noggin, a $7.99 monthly service targeting young children with Nickelodeon-type fare.

Viacom in March acquired ad-supported VOD service Pluto TV for $340 million. This summer the media giant launched BET Plus — a $9.99 service targeting African-American streamers.

Following the re-merger with CBS Corp., Viacom inherited CBS All Access ($5.99), Showtime OTT ($10.99) and Smithsonian Channel Plus ($4.99) SVOD. In the process, Viacom has myriad OTT distribution while at the same time giving mixed signals about a unified ViacomCBS vision digital leadership going forward.

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Speaking Dec. 9 with CNBC’s David Farber, Bob Bakish, CEO of ViacomCBS, was asked about the fact that Marc DeBevoise, CEO of CBS Interactive, reports to him for the all digital assets. And  to Joe Ianniello, CEO of CBS, for CBS Interactive.

“That doesn’t sound like an efficient way to go about trying to extract synergies and the growth,” Faber asked Bakish.

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The CEO claimed Viacom’s digital properties operated successfully under separate silos before the merger, a reality the merged companies could rejigger going forward.

Bakish agreed that working together on paper is different than in practice. He alluded to Viacom International originally operating independently and now as a multinational unit. Bakish added that when he became CEO in 2016 (replacing Philippe Dauman), Paramount Pictures operated independently, as did the company’s media networks.

“We took the last three years and really aligned that,” Bakish said.

He said ViacomCBS is putting forward an integrated company with one strategy. He said the revised blueprint would include paid and ad-supported content — with the widest access based on paid content.

“Today, in pay, [we’ve] got 10 million subs in SVOD in the U.S.,” Bakish said. “In free, [we’ve] got 20 million [monthly average users] at Pluto. We’ve got almost 200 million digital users. And we reached well over a billion through our broader business.”

He disagreed with the assertion that a high percentage of Viacom’s digital subs are promotional, rather than paying.

“That’s flat out wrong,” said the CEO, while declining to disclose actual digital revenue. Backish said the data would be revealed in 2020.

“You should expect some additional transparency in the streaming space,” he said. Viacom has heretofore just released Pluto viewership.

“You should expect that to broaden,” Bakish said. “We absolutely are going to operate as one ViacomCBS.”

 

 

 

Pluto TV: CBS, Viacom Merger Puts AVOD ‘Light Years’ Ahead of Schedule

The re-merger of Viacom and former subsidiary CBS Corp. should help accelerate worldwide distribution of Pluto TV, according to the ad-supported video unit. Viacom acquired Pluto earlier this year for $340 million.

“Today, we are excited to celebrate the union of two major media powerhouses — Viacom and CBS. As a part of the newly established @ViacomCBS media empire, Pluto TV has now jumped light years ahead, accelerating our mission to entertain the planet.” Pluto TV (@PlutoTV) tweeted Dec. 5.

The union presents the combined companies with three branded over-the-top video services in CBS All Access, Showtime OTT and Pluto — the latter ad-supported.

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When CBS launched All Access ($5.99) and Showtime OTT ($10.99), it projected 16 million standalone subscribers by 2022. That tally was reached through the third quarter of the current fiscal year, ended Sept. 30.

Pluto TV in July claimed more than 18 million monthly viewers across more than 28 content channels.

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“As the video marketplace continues to segment, we see an opportunity to support the ecosystem in creating products at a broad range of price points, including free,” Viacom CEO Bob Bakish said in the statement earlier this year.

Last month, Pluto began incorporating new channels from CBS Interactive, including ET Live and CBSN.

“We’re thrilled to be bringing more of our ad-supported streaming channels to the platform with today’s launch of our entertainment news channel, ET Live, and CBSN’s local news channels for New York and Los Angeles,” said Sarah Jeon, EVP of business development at CBS Interactive.

Pluto is also launching curated video channels for third-party clients and events. In September at the Advertising Week confab in New York, Pluto delivered a custom channel that targeted the event’s 100,000 attendees.

The Advertising Week pop-up channel showcased Pluto TV’s ability to create custom channels, a feature that’s appealing to advertisers and publishers seeking to reach fragmented and niche audiences.

The channel underscored the versatility of streaming TV, which Pluto CEO Tom Ryan claims can be programmed for optimal utility without the restrictions of traditional linear networks.

“In many ways, [Pluto] drew inspiration from the things cable TV had done right in terms of creating these interest-based channels that take the work out of entertainment for customers,” Ryan told a separate media confab.

 

Pluto TV Launching 24-Hour ‘Awesomeness TV’ Channel in the U.K.

Viacom’s ad-supported video-on-demand service Pluto TV, is launching a 24-hour edition of Awesomeness TV in the United Kingdom on Dec. 6.

Pluto, which Viacom acquired earlier this year for $340 million, has become integral in Viacom’s global over-the-top video aspirations, currently offering 65 channels of content across multiple genres.

Awesomeness TV currently streams in the United States targeting Gen Z audience with reality-based programming such as “My Dream Quinceañera”  and competition-themed “DIY Dash,” among other shows.

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“The [SVOD] market has changed drastically, especially in the last two years,” Olivier Jollet, managing director of Pluto TV in Europe, told Variety.  “We’re seeing from the user point of view that the willingness to pay is not unlimited. People will take two, three or four services … but not 10.”

Pluto TV, with 150 content partners, features ad-supported movies: Pluto TV Movies 1 & 2and Drama, Comedy, Family, Indies, Romance, Documentaries, Thrillers, Cult Films, Horror 24/7, Action Movies, Flicks of Fury, The Asylum, and Black Cinema.

As Planet Earth Turns to Streaming Video, ViacomCBS Aims for Pluto (TV)

Prior to Viacom’s re-merger with CBS Corp., the media giant had scant over-the-top video properties. Now with the addition of CBS All Access and Showtime OTT, the company claims about 16 million paying subscription streaming subscribers.

That’s 20% less than the 20 million monthly viewers who stream content for free on Pluto TV — the San Francisco-based ad-supported VOD service Viacom acquired earlier this year for $340 million.

That user tally reflects a 70% year-over-year gain in consumer traction for Pluto and underscores Viacom’s strategic move to compete against Netflix, Amazon Prime Video, Disney+ and other high-profile SVOD services with old-school ad-supported content.

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“Our focus on an investment in Pluto is evident,” Bob Bakish, CEO of ViacomCBS, said on the recent fiscal call. “In Q4 alone, Pluto launched 43 new channels and last month, Pluto Latino added 11 new channels given the platform of total 22 channels with over 4,000 hours of Spanish and Portuguese language programming.”

The opportunity for Pluto TV Latino is significant given the size of the Hispanic population, as well as gaps within the existing programming landscape. As the largest minority market, the group has a combined buying power of $1.5 trillion, according to research from the University of Georgia.

The once-dominant Spanish-language broadcast network, Univision, has been steadily losing viewers for years and has been locked in a battle with Comcast-owned Telemundo for younger, bilingual viewers. Meanwhile, streaming services such as Hulu, Sling, and fuboTV offer Spanish-language content, but the additional cost of these services is leading to “subscription fatigue.”

“There are all sorts of creative programming ideas we can test with the audience that hasn’t been done before,” Tom Ryan, co-founder and CEO of Pluto TV, said. “If they work, we can be nimble and double down on them.”

Indeed, AVOD revenue is projected to more than double between 2018 and 2024, topping $56 billion across 138 countries — including the U.S.

Next year, NBC Universal is launching an ad-supported streaming service dubbed “Peacock,” which joins industry players such Tubi TV, which bowed in 2014 with more than 9,000 movies and television shows, Amazon’s IMDb TV and The Roku Channel, among others.

“The U.S. will more than triple its AVOD revenue total between 2018 and 2024 to $19.23 billion — or 34% of the global total,” said Simon Murray, analyst with Digital TV Research.

Bakish said Viacom would continue to grow Pluto TV distribution globally and on new platforms, which he said would benefit both viewers and business partners.

He said Pluto has not only been a driver to restoring overall Viacom ad sales growth, it’s also been a platform to enable Viacom to “radically” increase the number of clients it does business with.

“In the crowded subscription universe, as consumers become increasingly more value conscious, we strongly believe that having the leading free streaming service in the country and over time, the world is a huge competitive advantage,” Bakish said.