Virtual MVPD Philo this week shared a slew of updates around the wallet-friendly streaming pay TV provider’s business, including revenue and subscriber figures, ramping FAST efforts and plans to introduce TVOD early next year.
Philo currently offers a streaming pay TV lineup of more than 70 premium channels for $28 per month, alongside over 100 free ad-supported streaming TV (FAST) channels and a subscription to the ad-supported version of AMC+ at no additional cost. It also offers a library of on-demand titles and unlimited DVR.
As a private company it doesn’t regularly disclose financial or subscriber updates but shared two notable data points this week. One is that the service has grown to 1.3 million paid subscribers, up from the 1 million it had at last disclosure as reported by LightReading in January 2024. That puts it nearby sports-focused vMVPD Fubo, which had 1.6 million North American subscribers as of the end of Q3 2024 (and not including Hulu + Live TV subscribers, which earlier this year decided to join businesses with Fubo under a deal with Disney, though the services will remain distinct offerings).
Philo also, for the first time ever, disclosed revenue, which totaled $450 million for 2024. In response to questions from StreamTV Insider, Philo said 2024 total revenue represents around 10% increase yoy from 2023, with its typical revenue mix about two-thirds subscribers and one-third advertising (first reported by LightReading). Additionally, some of the 2024 growth can be attributed to a particularly strong October where the political advertising season helped provide a boost, a Philo spokesperson added. And while Philo didn’t say what costs were relative to revenue, the entertainment-focused pay TV provider expects to achieve profitability in 2025.
“In 2024, Philo generated approximately $450M, reflecting strong subscriber engagement and an efficient business model,” Philo CFO Julianna Hayes told StreamTV Insider via email. “Our core product saw 20% year-over-year subscriber growth in 2024, and 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.”
Philo over the past year has taken steps to attract users, boost engagement, and differentiate in the streaming space including through the addition of FAST channels, which are available both behind the subscription paywall and for free as a standalone service to users of its app. It’s not the only vMVPD to bring FAST into the mix, as others including Fubo, Dish’s Sling Freestream and DirecTV Stream’s MyFree have also looked to leverage free streaming channels.
FAST in focus, former Tubi talent joins as product chief
Philo is one that has leaned into FAST, which others like Fubo have pegged as a way to keep viewers that have churned engaged with a platform, while also providing a direct way to upsell users into paid subscriptions – not to mention drive advertising revenue. It’s also brought on new talent to help further FAST ambitions.
Adding to its FAST ranks, Philo announced Edward King – former VP of Product at Fox’s Tubi– joined the vMVPD in January as chief product officer.
Philo’s Hayes provided some more insight into how the company views FAST, which the CFO told StreamTV Insider is “a key component of our long-term strategy” but added it’s important to distinguish impact across different parts of the business.
It’s worth noting that the 1.3 million figure only includes paid Philo subscribers, and while the company acknowledged FAST channel additions to its Core pay TV offering may have improved retention, the standalone FAST users aren’t seen as a key driver of subscriber acquisition in 2024.
“While adding FAST channels to our Core product has likely contributed to subscriber retention, our standalone FAST service is designed to broaden Philo’s audience and grow our ad-supported revenue streams rather than directly drive paid subscriber growth,” Hayes explained. “That said, we expect standalone FAST to play a significant role in subscriber growth and profitability in 2025.”
When Philo launched the offering last year it enabled the company to better understand the standalone FAST audience and refine the experience, she noted.
“With Edward King now leading product strategy, we’re optimizing FAST to serve as both an upsell opportunity and a ‘front porch’ to our Core product,” Hayes continued. “Additionally, in 2025, we’ll be ramping up marketing efforts for FAST, which had previously only received a small portion of our resources. As a result, we anticipate meaningful growth in this sector, including increased audience reach, FAST subscriber expansion, and a stronger impact on ad-supported revenue.”
According to Philo, since joining the company King has been leading advancements in its standalone FAST service, content discovery and live TV experience. To help scale Philo’s FAST offering, he’s bringing experience from Tubi, which surpassed Max, Peacock and Paramount+ in share of US TV viewing time in 2024 per Nielsen’s The Guage. Tubi also just had a major showing and gave FAST a bigger spotlight when Fox livestreamed Super Bowl LIX for free on the platform, reaching 15.5 million peak concurrent streaming viewers. As for Philo, it’s got an entertainment-focused lineup and stayed away from carrying content like live sports as part of its play to keep the service budget-friendly. Philo counts Mark Cuban, AMC, A&E, Warner Bros. Discovery and Paramount Global among strategic backers.
In emailed responses to StreamTV Insider, King described three main ways that FAST helps serve the business.
“Our standalone FAST product outside of the paywall serves Philo and our audience in several key ways—acting as an entry point for new and returning users, a retention tool, and a growth driver in our revenue strategy,” commented King.
Expanding on those aspects, he went on to say that FAST is a way to engage both new and churned users, allowing them to explore the content and also see the value of upgrading to the paid pay TV packages.
As for retention, FAST plays a strategic role.
“Subscription behavior is often seasonal, and rather than losing those customers entirely, FAST gives them a place to land between active subscription periods,” said King. “Keeping them engaged within the Philo ecosystem increases the likelihood of reactivation.”
Lastly, the product chief categorized FAST as “a significant revenue diversification opportunity.”
“While traditional cable is in decline, the VMVPD market continues to grow, and FAST is one of the fastest-expanding sectors in entertainment,” King said, adding that FAST has become mainstream, where viewership has already shifted, and ad dollars are following.
“At Philo, we see this shift as a major opportunity. Our Core product has a cost barrier, but FAST does not—allowing us to expand our addressable market far beyond traditional pay TV subscribers,” he explained. “Our goal is to take what we’ve learned from building a leading vMVPD and elevate the FAST experience beyond industry expectations.”
And Philo’s also looking to widen offerings on the service further with an expansion into film rentals.
TVOD on deck
Alongside the subscriber and revenue disclosures Philo announced for the first time its acquisition of ROW8, a premium TVOD rental service.
Philo completed the acquisition back in July 2024 and ROW8 has since continued to operate as a standalone property online and in app stores.
It’s set to be integrated later this year but consumers aren’t likely to see it go live within Philo’s product until early 2026 as the company is still working through decisions on exactly what that integration looks like.
Philo declined to disclose the purchase price but noted with the acquisition it secured deals with almost every major studio including Disney, Universal, Warner Bros., Sony, Paramount, MGM and Lionsgate, which already had deals and relationships in place with ROW8. The purchase has helped Philo to understand the TVOD business and customer behavior better before integrating the asset within its own business.
“With the acquisition of ROW8, Philo is looking to evolve beyond live and FAST into premium content rentals. This move ensures that our subscribers can access high-quality movies without needing to switch between multiple apps—offering a truly unified viewing experience,” said Philo CEO Andrew McCollum via email.
It goes to Philo’s larger strategy of offering a more comprehensive but simplified entertainment service and experience.
Other standalone free streaming platforms, such as Plex, have also delved into the TVOD space.
And as user engagement and subscriber retention become increasingly important to streamers, having additional ways to access content within the platform is one way to potentially keep users coming back and staying longer, or engage with the app before they’re ready to pony up for a full paid subscription (if it’s in front of a paywall). Fubo last year, for example, started offering standalone premium subscriptions without the need for users to subscribe to one if its live streaming pay TV packages.
Philo, meanwhile, hasn’t just expanded content and access to its platform, but also revamped and tailored brand messaging for consumers. Last year it launched a brand revamp that emphasized Philo as a comprehensive yet affordable and easy-to-use TV entertainment service amid a fragmented content and viewing landscape.