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Philo streams pay TV — without sports or broadcast channels — for $16 a month

By February 15, 2018No Comments

Another streaming pay-TV provider has launched but this one is unique since it does not offer any sports programming.

The streaming wars (monthly cost):
1) Hulu Live — $40
2) DirecTV Now — $35
3) Sling TV — $20
4) PlayStation Vue — $40
5) YouTube TV — $35
6) Verizon — TBD
7) Charter — $20
8) CenturyLink — $15
9) Comcast Instant TV — $18
Philo — $16

Philo is backed with $25m from 5 strategic investors:
1) A+E Networks
2) AMC Networks
3) Discovery
4) Scripps Networks
5) Viacom

The big idea. There is a large swath of consumers who will switch to a skinny bundle that does not contain expensive channels that they do not watch.

Quote from Steve Cahall — Analyst @ RBC Capital Markets.
“Proper a la carte has yet to arrive in media and may never happen, but the traditional pay-TV bundle is fragmenting, and Philo now gives non-sports fans the option of cutting the cord and avoiding the implied costs of sports rights through a cheaper entertainment-only alternative.”

The 37 channels include:
1) A&E
2) AMC
3) Animal Planet
5) BBC America
6) Cheddar
7) Comedy Central
8) Discovery Channel
9) Food Network
10) GSN
11) HGTV
13) Investigation Discovery (ID)
14) IFC
15) Lifetime
16) MTV
17) Nickelodeon
18) TLC
19) Travel Channel

Previously on SOTS. Cable and satellite TV customers pay more than $9.00 per month for ESPN networks whether they watch them or not

The average cable bill is $103/month.

Breakout if consumer switched to the non-sports bundle:
1) Non-sports bundle: $20
2) Internet service: $50
3) Total monthly cost: $70

The above scenario would reduce a monthly pay-TV bill by $33 (32%)

More on this topic. Philo Fills News Void with Fee-Free Upstart Cheddar

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.