Philo Adds Free Ad-Supported Channels to Paid Streaming Service
Philo has integrated free ad-supported streaming television channels into its paid live TV service and launched a separate free tier. Executives discussed how the FAST channels affect subscriber retention and product differentiation.
ForbesPhilo has added a bundle of free ad-supported streaming television channels to its paid live TV service and introduced a free tier for users who do not pay for a subscription. Sarah Wong, Chief of Staff and General Manager of FAST at Philo, said the company began adding FAST channels after observing that paid subscribers already watched free channels elsewhere.
She stated that the channels include prior seasons of series already available on Philo and additional titles that increase engagement. Wong said the addition of FAST channels helped retain users who had previously canceled their paid subscriptions.
She noted that the free offering was expanded after Edward King joined the company as Chief Product Officer.
King said Philo offers two advantages over other free platforms. He stated that the service includes a DVR function that allows users to record shows and watch them later, a feature most free platforms lack. King said content partners sometimes provide earlier seasons of programs on the free tier that are not available on other free services.
He noted that viewers can then upgrade to the paid tier to watch later seasons.
King said the FAST industry faces challenges with repetitive advertisements. He stated that automated ad insertion systems sometimes play nearly identical ads of different lengths because the systems do not recognize them as the same creative. King said Philo is testing AI tools to identify duplicate ads and reduce repetition.
He stated that the company also runs house ads to promote its paid content and to fill required ad breaks when paid advertisements are unavailable.
Key Facts
Potential Impact
- 01
Users may watch free channels and later subscribe to access additional seasons.
- 02
Repetitive ads could decrease if AI identification tools are deployed.
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