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WOW! Lays Foundation to Ditch Selling Cable TV; Starts Offering Streaming Alternatives

Cable system overbuilder WideOpenWest, better known to customers as WOW!, has begun offering its customers subscriptions to streaming video competitors fuboTV, Philo, Sling, and YouTube TV, in what could be a gradual move away from selling its own video packages.

WOW!, like every cable operator, is losing cable television customers to cord-cutting. As of the end of 2019, the company had just 381,000 video subscribers remaining, down another 6,300 in the last three months. Because of its small size, WOW! does not qualify for the steep volume discounts offered to cable television and satellite TV companies that have tens of millions of video customers. As a result, it either has to continue to raise prices or watch its cable television packages become unprofitable. WOW! has apparently decided it is smarter to partner with nationwide video streaming providers, if only to keep its broadband and television customers from switching to a competitor.

“WOW! has always put a high value on offering choices to consumers,” said WOW! CEO Teresa Elder. “This is one more way we’re empowering customers to determine when, where and how they consume information and entertainment. Our robust broadband network is the natural choice for high-speed data customers […] who want to access streaming services on their terms.”

WOW! specializes in providing service in communities already served by another cable operator. Many of its systems are in the Midwest, where it competes with Charter Spectrum, Cox, or Comcast.

WOW! will offer customers one free Amazon Fire TV Stick and a $25 rebate that can be used to buy other set-top boxes that will support streaming TV alternatives.

If successful, it may not be too long before WOW! stops selling cable television altogether, to focus on its broadband business.

Philo Moving to One-Size-Fits-All $20 Package Effective May 6

Phillip Dampier April 24, 2019 Competition, Consumer News, Online Video, Philo TV Comments Off on Philo Moving to One-Size-Fits-All $20 Package Effective May 6

Philo is the latest streaming alternative to cable television consolidating its package offerings, ditching a 45-channel skinny bundle sold for $16 in favor of a single 58 channel package Philo will continue to sell for $20 a month.

Until May 6, customers can still subscribe and keep the ultra-slim $16 package, which includes:

Philo’s Discontinued 45 Channel Package $16/mo (still available for sign-up until 5/6/2019)

  • A&E
  • AMC
  • Animal Planet
  • AXS TV
  • BBC America
  • BBC World News
  • BET
  • Cheddar
  • Cheddar Big News
  • Cleo
  • CMT
  • Comedy Central
  • Discovery Channel
  • DIY Network
  • Food Network
  • FYI
  • Game Show Network
  • Hallmark Channel
  • Hallmark Drama
  • Hallmark Movies & Mysteries
  • HGTV
  • History
  • IFC
  • Investigation Discovery
  • Lifetime
  • Lifetime Movies
  • MotorTrend
  • MTV
  • MTV Classic
  • MTV2
  • Nick Jr.
  • Nickelodeon
  • Oprah Winfrey Network
  • Paramount Network
  • PeopleTV
  • Science Channel
  • Sundance TV
  • Tastemade
  • TeenNick
  • TLC
  • Travel Channel
  • TV Land
  • VH1
  • Viceland
  • WE tv

Philo’s 58 Channel Package $20/mo (only package available to new customers starting 5/6/2019)

  • All networks included in the 45 channel package, plus…
  • American Heroes Channel
  • Aspire
  • BET Her
  • Cooking Channel
  • Destination America
  • Discovery Family
  • Discovery Life
  • Law & Crime Trial Network
  • Logo
  • MTV Live
  • Nick Toons
  • Revolt
  • UP TV

Philo CEO Andrew McCollum explained the changes:

“Starting May 6, we will move to only offering our $20 package — the 58 channel package — to new subscribers. For those who are already subscribed and anyone who subscribes before that date, nothing will change — you’ll continue to have the same package and same price options you have today.

At Philo, we care deeply about creating the best TV experience possible at an affordable price. Since we launched 18 months ago, most of the other companies in our space have raised their prices, in some cases multiple times. 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 or having to cut back in places we strive to excel, like our customer support.

Again, nothing is changing for anyone who has already subscribed by May 6 — you’ll keep the package you have and will continue to be able to switch between our two existing packages.”

McCollum also shed light on why services like Philo are moving away from a-la-carte or “theme pack” business models:

“There are a bunch of complicating factors, though. It’s tricky to do with the major network groups because the deals don’t generally allow it. There’s also an issue with making things more complicated.

Canada generally has something like this model (along with a mandated a la carte channel model, but nobody does it), and it’s actually super overwhelming. Some providers have 80+ different packages, and it’s impossible to just figure how to get what you want.

In general, I think choice is good, but I also think that bundling is good when the bundles make sense and are focused. The big issue is keeping things that some people want a lot, and that cost a lot, but other people don’t care about (e.g., sports) from driving up the cost for everyone. Trust me when I say that even if we could break things up more, the economics would probably net out where most people pay about the same but get fewer channels.

We are actually looking at making more content available through add-ons. I think it makes sense in a lot of cases, especially for premium/niche content.

It’s actually super overwhelming. Some providers have 80+ different packages, and it’s impossible to just figure how to get what you want.”

Say Hello to Sports-Free Philo TV for Less Than $20/Month

Phillip Dampier September 13, 2017 Competition, Consumer News, Online Video, Philo TV 1 Comment

A group of cable networks are teaming up to offer the first over-the-top online streaming cable TV package for sports haters.

Philo TV, expected to soft launch within a few weeks, is a sports-free television package of popular cable networks expected to sell for under $20/month.

Instead of ESPN and Fox Sports, Philo TV will concentrate on dramas, documentaries, kids shows, reality television, and original productions aired on cable networks owned by the venture’s partners — Discovery Communications, Viacom, AMC Networks, A+E Networks and Scripps Networks Interactive.

That guarantees networks like Food TV, HGTV, Discovery, AMC, Comedy Central, A&E, Nickelodeon, and other popular general interest cable networks will be on the lineup.

The partners elected to work with Philo TV, an existing venture supplying skinny bundles of cable programming on college campuses around the country. Based on Philo’s college TV lineups, it is not a stretch to assume the new streaming service will also include networks like The Weather Channel, CNN, FOX News, tru-TV, Animal Planet, National Geographic, MSNBC, History Channel, BBC America, Game Show Network, Hallmark, Spike TV, USA, Cartoon Network, Lifetime, Syfy, and perhaps even the Disney Channel.

The service is not expected to include over-the-air stations, but the exclusion of sports means plenty of savings for sports-loathing viewers. Sports programming fees are by far the highest of any network costs for cable and satellite providers. Eliminating costly networks like ESPN saves the average cable company at least $6 a month for that network alone.

The “Philo” venture is named after Philo Farnsworth, the American inventor of an all-electronic television system still partly in use today, which quickly dispensed with the earlier electro-mechanical television systems that preceded it.

Philo isn’t necessarily going to be limited to online streaming. The company is exploring cutting deals with existing phone and cable companies to distribute the package as a competing alternative to today’s bloated cable television packages.

Those interested in being notified about the venture’s imminent launch can register their email address or mobile number on Philo’s website.

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