Viacom has acquired Pluto TV, the free, advertising-based streaming service, for $ 340 million in cash. The service, which has around 12 million active users per month, will act as an independent subsidiary within the company and retain its current CEO. Pluto TV currently has around 100 ad-supported channels and a library of on-demand content, both of which can be viewed for free without subscription.
For Viacom, the acquisition of Pluto TV is about having direct access to millions of consumers, many of whom will be younger than a typical pay-TV subscriber. Not only does Viacom earn money from its existing back catalog through ad serving, but it also hopes Pluto TV will provide a new way to promote and market its paid subscription products, which include Noggin and Comedy Central Now.
Pluto TV is currently available for free via apps on iOS and Android, Samsung and Vizio smart TV platforms, and VR with Oculus TV. Expect that it will be much wider available after this acquisition. Viacom will offer Spanish-language content in the near future. Let's just hope it works better than Viacom's takeover of AwesomenessTV, which brought about 1