Philo, one of the most affordable streaming TV services on the market, announced today that it is slightly increasing its prices. Furthermore, new data from Convergence Research Group published today shows increasing interest in cord cutting, but questions the fate of over-the-top streaming services.
Philo announced today that it is eliminating its popular $16 per month streaming plan. The plan offered users access to 45 different channels, making it one of the most affordable streaming TV packages on the market. That plan, however, will no longer be an option for new subscribers starting next month.
In place of the $16 per month plan, Philo is pushing users towards its $20 per month tier. As reported by TechCrunch, this tier includes 58 channels, adding options such as MTV Live, BET Her, Nicktoons, Logo, Cooking Channel, Destination America, Discovery Family Channel, Discovery Life Channel, and more.
In a post on Philo’s website, CEO Andrew McCollum explained that embracing the $20 per month plan is the best way for the company to offering “the best TV experience possible” despite its increasing operating costs:
Starting on May 6th, the $16 per month plan will no longer be available to new subscribers. Existing subscribers, however, will remain grandfathered into that $16 per month. Philo is available for iPhone, iPad, and Apple TV on the App Store.
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 for everyone, or having to cut back in places we strive to excel, like our customer support.
Meanwhile, a new report from Variety today takes a look at data from Convergence Research Group. According to that data, 4.56 million TV households plan to cut the cord this year. This would mean that 34 percent of US households would not have a traditional TV subscription. Furthermore, the data suggests that the number of streaming subscribers will surpass the number of pay TV subscribers this year.
When it comes to over-the-top streaming TV services, however, Convergence is less optimistic.
Read the full report here.