Pluto TV
Free streaming television service offering live TV channels and on-demand content.
PE-OWNED
Acquired by Ares Management2016-03-01
What Made It Great
Free ad-supported streaming TV platform with linear channel programming
What PE Will Likely Do
Pluto TV's content offering will be reduced, with fewer live TV channels and on-demand titles available
Pluto TV's advertising inventory will likely increase, leading to more frequent and intrusive ad breaks
Pluto TV's user experience will degrade, with more technical issues, bugs, and poor performance
Pluto TV's customer service and support will decline, with longer wait times and less responsive assistance
Expected Timeline
“0 to 6 months months”
Acquisition announced, promises of 'investment' and 'growth', initial round of editorial and engineering layoffs
“6 to 12 months months”
Further content cuts, with less diverse and engaging programming, more ads implemented
“12 to 24 months months”
Pluto TV's free, ad-supported model pivots towards a freemium or subscription-based model, with core features paywalled, quality and reliability issues mount
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Enjoy Pluto TV's current free, ad-supported model while it lasts, as changes are likely coming that will reduce the value proposition
Be prepared for a decline in Pluto TV's content quality, user experience, and customer support over the next 12-24 months
Consider alternative free or low-cost streaming options that may be less affected by private equity ownership
Alternatives
Look for family-owned or employee-owned businesses