EXCLUSIVE: Pay-TV bundle Philo is hitting some notable operational milestones in its eighth year as a full-fledged pay-TV service.
The company has hit 1.3 million subscribers, posting a 20% year-over-year growth rate in 2024. Disclosing financials for the first time, Philo said it takes in $450 million in annual revenue and expects to turn its first profit this year.
Two other developments can also be revealed by Deadline: the acquisition of TVOD outlet Row8 and the hiring of Tubi alum Edward King as Chief Product Officer. King was VP of Product at Tubi, which was acquired by Fox Corp. in 2020 and has become one of the top free, ad-supported services in streaming.
Row8, an independent provider of film and TV titles for rental or purchase, will be integrated into Philo’s service by 2026, giving subscribers a way to access a wider range of content without leaving the Philo app. Until then, it will continue to exist as a stand-alone storefront for transactional customers. Financial terms of the transaction were not disclosed.
Founded by early Facebook employee Andrew McCollum and named after TV inventor Philo T. Farnsworth, Philo began as a niche service on college campuses. It then transitioned in 2017 to a general non-sports offering at a more modest price point than broader vMVPDs also entering the market, such as YouTube TV. Investors in Philo include Mark Cuban, AMC Networks, A+E Networks, Warner Bros. Discovery, and Paramount Global.
The strides made by Philo come at a consequential moment for pay-TV and streaming. Cord-cutting is continuing to erode the footprints of traditional cable and satellite players, with traditional cable powers Comcast and Charter focused more on their broadband and wireless businesses.
Among internet-delivered pay-TV players, YouTube TV leads with more than 8 million subscribers. Rival Hulu + YouTube TV is aiming to close the gap with its recently announced plan to buy a majority stake in Fubo. Hulu parent Disney opted to buy Fubo after being sued along with Fox and Warner Bros. Discovery in an antitrust claim prompted the planned debut of Venu Sports, a joint venture. Venu was formally scrapped last month after the lawsuit was settled.
Disney plans to launch a stand-alone streaming version of ESPN this fall, while Fox said last week it will develop a general-interest streamer that will include sports programming. WBD, meanwhile, has a sports tier on flagship streamer Max.
Philo is positioning itself at a lower price point than most other full bundles and potentially could serve as a complement to sports-focused services coming to market. For $28 a month, subscribers get a collection of 70 channels as well as subscription outlet AMC+. Frndly is a similarly constituted but smaller pay package that leans toward more conservative programming. Dish Networks’ Sling TV is comparable in size but a bit pricier, starting at $46 a month.
The Fubo lawsuit as well as high-profile battles between major programmers like Disney and major distributors like Charter and DirecTV have led to a wider acceptance of smaller, more bespoke bundles, though the economics of the sector remain daunting. Philo isn’t planning to remain sports-free forever, but does not want to invite rate increases that make its pricing unsustainable.
“As we look ahead to 2025, we anticipate reaching profitability through a disciplined strategy – driven by continued product investments, efficient marketing, a lean operating team, and the expansion of our standalone FAST service,” CFO Julianna Hayes said.
In a statement provided to Deadline via email, McCollum said the Disney-Fubo combination is “a major development in the live TV streaming space and underscores the growing trend of rebundling.” With viewing of FAST channels and events like last Sunday’s Super Bowl moving in front of the pay wall on Tubi, he added, “live TV services remain a valuable and strategic category.”
The CEO said Philo is in discussions with potential partners on new bundles and add-on options for subscribers. “The traditional bundle as we know it is breaking down,” he said. “As other services become increasingly sports-focused, Philo remains an ideal complement for entertainment-first viewers.”
King said the “innovative approach” of Philo blending live TV channels, FAST and on-demand options was appealing to him. The company is “meeting people where they are,” he said, “offering cultural moments and top-tier entertainment at a price point that’s fair and inclusive.”
