What is Pluto TV and how is it gaining market share?

Netflix claims that has lost over 1 million subscribers . CNN Plus shuts down just weeks after its launch. But in this very competitive streaming industry, one platform is managing to gain millions of users in record time and changing the streaming landscape.

So let’s start with the elephant in the room. What is Pluto TV ?

Launched in 2014 by three TV executives in San Francisco, with the initial idea to take the transitional experience of cable TV and recreate as a streaming service. Now, Pluto TV is a free, ad-supported streaming service that offers a wide range of content, including live TV channels, movies, and TV shows.

The platform has seen significant growth in recent years and has a loyal user base. By 2017 they had 15 million monthly users watching over 100 different live channels.

But it was in 2019, when Pluto was acquired by ViacomCBS (maybe you know it as Paramount ), that allowed the platform to really expand its offerings and distribution, with its vast channel portfolio like MTV, CBS, Comedy Central and more.

Following this acquisition, content of all these channels started to appear on Pluto, skyrocketing monthly user base to 72 million active customers by the end of 2022, which translates to 1% market share. As a comparison - YouTube 8%, Netflix 7.3%, Disney Plus 1.9% and HBO Max 1.3%.

It is important to note here that Pluto is competing directly to the major paid subscription streaming services like Netflix , Hulu , and Amazon Prime Video. Since in order to afford providing all this content to its viewers for free, it needs to secure a different income stream.

And this stream comes from ads. A move that seem to work, since in 2022 Pluto made over a billion dollars from advertising. Still the amount is nothing compared to Netflix’s 30 billion dollars, but Pluto has another bow in its quiver.

Viacom group also owns Paramount+ as its paid subscription platform. So Pluto is being used as free step to promote their popular shows, and entice viewers to sig up for Paramount+. With this strategy Paramount+ gained 3.7 million new users in the past three months. As a comparison HBO added 1.7 million .

Now let’s sum up how exactly Pluto TV is gaining market share with it’s unique business model:

1. Content: Wide range of free, ad-supported content from major studios and networks, such as CBS , NBC, and Warner Bros. This diverse selection of content is a major draw for viewers who are looking for free, on-demand entertainment. Also the choice of the programs is happening based on quality content and nostalgia.
2. Advertising: Pluto TV monetises its platform through ads, which are integrated into the content viewing experience. By offering advertisers a way to reach a large and engaged audience, Pluto is able to generate revenue and continue to invest in its platform.
3. Partnerships: The platform has formed partnerships with a variety of device manufacturers, including Samsung Electronics , LG Electronics , and VIZIO , as well as streaming platforms like Roku and Amazon Fire TV. These partnerships help to expand the platform’s reach and make its content available on a variety of devices.
4. International Expansion: In 2021, Pluto TV launched in Latin America, adding to its existing presence in the United States, Europe, and other regions. This expansion has helped to grow its user base and increase its market share.

To close this article, we have seen platform like HBO Max, Hulu and Peacock experimenting with this ad model, and even Netflix is considering in adding an ad-supported tier in its offering.

So do you believe that this is going to be the end of paid streaming TV?