How Do Viewers Choose Streaming TV Providers?
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Read the complete transcript of this clip:
Eric Schumacher-Rasmussen: You talk about pricing, and what I mentioned in my introduction about some recent news. Just last Friday Hulu raised their price pretty significantly for their live linear offering. The no-ad package, or the limited-ad package went from 50 to 60 dollars a month.
Ben Chambers: Yeah.
Eric: You're starting to see these services get up into the cable TV range. So price point is obviously still a huge differentiator--
Eric: for Philo. Do you hear that from your customers, that one of the biggest reasons they choose Philo is the price?
Ben: Yes, for sure. That is a consistent message, you know, I think it's sort of unclear whether, you know, we don't really know for sure I guess whether people really have a deep understanding, that, for example, sports is driving an outsized proportion of there traditional cable package. You know, I don't know if that many people know that 30 dollars of their cable bill is going just to sports.
Ben: But certainly I think people do recognize value when they see it. And again, so you know, 58 channels for 20 bucks a month, it's a pretty compelling price point. We definitely hear from our customers, that they love not paying for channels that they are not watching.
Ben: Which, you know, that is kind of a no-brainer.
Ben: But that's definitely compelling.
Eric: So the no-sports feature that you kinda put forward is definitely a USP for you.
Ben: Yes, yeah.
Eric: And I know, you know, a couple of your other USPs, are that you offer three simultaneous streams.
Ben: That's right.
Eric: And unlimited DVR.
Eric: What sort of feedback do you have from consumers, about how often do they use those features, and how much those features play a role in their choice of Philo?
Ben: Yeah, so, I would say, to the three simultaneous streams, I would say it a significant minority of our users who take advantage of the multiple streams. Certainly not everyone is doing that. But I actually think at this point, that I almost think of that as more like a table-stakes feature. It seems like a lot of the services out there do have multiple streams. It's kinda something people expect at this point. The DVR thing is huge, though. That is definitely a really compelling feature that people love. You know we have a 30-day unlimited DVR, so you can save as many shows as you want, and we'll record all the episodes and keep them for 30 days. And, you know, that is something that the vast majority of our users are using it to some extent. And there are a lot of them that use it quite heavily.
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