San Francisco Chronicle

Philo online TV service expanding beyond colleges

- By Benny Evangelist­a

Philo, a San Francisco company named after the inventor of television, is graduating its online streaming TV service aimed at college students to older cost-cutting audiences.

Philo is offering a package of 35 popular entertainm­ent networks starting at $16 a month, less than similar services like Sling TV. The company is using technology it built from an 8-year-old TV streaming service now available at more than 70 colleges around the country.

The company is hoping to take advantage of the wave of TV viewers who are reducing or cutting ties with traditiona­l pay-TV subscripti­ons. However, Philo is not including sports channels.

Sports and broadcast TV networks have traditiona­lly charged higher fees to cable and satellite networks for the rights to carry their programmin­g.

“Live sports brings a lot of costs,” said Philo CEO Andrew McCollum, one of Facebook’s founding members. “If you’re not interested in that and if you want to get these entertainm­ent channels, you end up having to sign up for a package that includes a huge amount of price devoted to sports content.”

Instead, Philo is concentrat­ing on entertainm­ent networks, including A&E, AMC, Animal Planet, BBC America, BET, Comedy Central, Discovery Channel, Food Network, HGTV, History Channel, MTV, Nickelodeo­n and the Travel Channel. For an additional $4 per month, subscriber­s get nine more channels, including the Cooking Channel and Discovery Family.

The company has deals with Viacom, Discovery Communicat­ions, EW Scripps and A&E Networks (a joint venture of Hearst, publisher of The Chronicle, and a unit of Disney).

Philo, which started as Tivli

in 2009 at Harvard, sells an online TV service to universiti­es to offer as part of a package of student residentia­l services.

This is the first time that Philo, which moved to San Francisco in 2015, has aimed at a wider audience. It comes at a time when TV viewers are increasing­ly turning to online sources. Netflix, Amazon Prime Video, Hulu, MLB TV, HBO Now, Starz, YouTube Red, Showtime, CBS All Access and Sling TV are the top 10 online TV video services, according to a report released last week by Parks Associates.

At the same time, the U.S. cable TV industry lost about 1 percent of its subscriber­s last year, but increased its broadband subscripti­ons by about 5 percent, according to an October report from Moody’s Investors Service.

So despite an increasing­ly crowded field of online TV services, McCollum believes it’s not too late for Philo, which plans to add a social networking layer to the service early next year.

“We’re very much closer to the begining of this transition, not the end,” he said.

Philo is named after Philo T. Farnsworth, who as a 21-year-old inventor broadcast the first television image — a straight line — from his laboratory at 202 Green St. in North Beach on Sept. 7, 1927.

McCollum said he tried to lease that building to house Philo, but settled for a South of Market office.

“I feel like we’re sort of picking up where Philo Farnsworth left off,” McCollum said. “It’s nice we can do some little homage to him through the name of the company. We’re respectful and proud of our namesake.”

Philo, which includes DVR services, is available on computers using the Chrome, Safari, Edge or Firefox browsers, and on iPhones and iPads. Philo also works on Roku streaming media devices, but not yet on Apple TV.

Newspapers in English

Newspapers from United States