|By PR Newswire||
|December 11, 2013 06:18 AM EST||
ORLANDO, Fla., Dec. 11, 2013 /PRNewswire/ -- FreeCast's Rabbit TV has done two things since its launch in February - (1) assembled the world's largest online library guide of freely available TV shows, movies, live events, and (2) amassed over 2 million paid annual subscribers. From their ever-present infomercials to their colorful packaging lining the shelves at most major retail chains, including Walmart, Target, Bed Bath Beyond, Sears, Office Depot, Walgreens and many others, one can't help but notice the company's agnostic approach - giving consumers easy access to all available content, regardless of provider, and feeding their demand for additional services and devices.
With the average monthly pay-TV bill expected to reach $123 by 2015 (NPD Group 2013), and widespread customer complaints over channel bundling (Forbes 2013), consumers are seeking lower-cost over-the-top (OTT) options along with multi-device viewing capabilities. While Netflix is the most popular video on-demand (VOD) option for consumers at $7.99 per month, their licensing model is bound to face competitive pressures as the 'big six' media groups may refuse to cooperate with one another in the long-term.
Rabbit TV, on the other hand, offers consumers a much larger content library at only $10 per year - this low price tag encourages more rapid subscriber growth and naturally drives recurring upsells on premium content like pay-per-view movies, series and subscription channels, delivering revenue directly to the networks producing the content. This model doesn't interfere with existing cable licensing agreements, yet focuses on cord-cutters and zero-TV households, allowing the networks to essentially 'double up' on revenue.
FreeCast is confident that it will have amassed a large enough audience in the next 12-24 months to give networks incentive to take the next big step - selling their channels directly online.
"Last year, a survey determined the average person would pay $12 a month for online-only access to HBO's seven channels. We expect to accumulate an active audience of over 10 million subscribers in the next year - at $10+ monthly this quickly adds up to the same $100 million these providers make from over 50 million cable subscribers pulling $2 per month in licensing fees. It's just a matter of time before the networks realize how much money they're leaving on the table," says William Mobley, FreeCast CEO.
The company has recently leaked news of several big announcements coming out at CES in January, including a new device-less incarnation of Rabbit TV with mobile capabilities along with a next-generation micro set-top box, a fully-functional PC boasting a powerful quad-core processor and app manager, making any TV 'The Smartest TV Ever.'
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