The streaming media company Plex announced this morning that it would begin to offer advertising-funded videos, including movies and television, through a new content agreement with Warner Bros. . Domestic Television Distribution. Although Plex has recently expanded to new areas other than home media organization – including streaming TV and digital recorders, streaming music via a TIDAL partnership, podcasts, news, etc. – this new contract represents the first time that Plex has contained supported on its service that will benefit its results.
In January, at Consumer Electronics Show, TechCrunch announced that Plex was preparing to enter the market for advertising-funded films.
At the time, the company said it was in discussion with various rights owners and content providers, including premium networks, to offer more streaming videos on its platform. His model would be similar to Roku's The Roku Channel, in that it would start with free, advertising-funded movies and television, and then add content, which could eventually include subscriptions.
Plex was not able to say how many movies and TV shows would be presented to Plex users through its license agreement. In addition, he could not offer a sample of securities because of the nature of his contract with Warner Bros. But he will have more to share. on this front that the offer is getting closer to launch, later this year.
The company also announced that it would use SpotX for programmatic ads, with more ad sales features to roll out in the future. The revenue generated from ad sales will be added to the revenue that Plex already derives from its premium feature set through its Plex Pass subscriptions.
It also remains to be determined how, exactly, free movies and television will be displayed in the Plex user interface.
Today, Plex has a left navigation menu where "online content" can be found, such as TIDAL, news, podcasts and webcasts. This would be a likely destination to add the new AVOD collection (video on demand with advertising support), but Plex may decide to change the design of some parts of its interface.
Movies and TV shows will be available to millions of Plex users in the United States, not just subscribers. But its largest AVOD service, which will eventually be expanded, will be global in nature.
Today, Plex has about 20 million users, but the number of paying customers is not specified. (As Plex told us earlier, his investors do not want anyone to "get his income back", but it's profitable.)
The company's long-term vision is to become even more one-stop shopping for all your media – be it the content you own, buy or distribute.
"Plex has always been about solving new media challenges and our mission is to master the growing chaos in the media landscape," said Keith Valory, CEO of Plex, in a release about the launch. "The license of these Warner Bros. films. allows us to offer more types of third-party content than any other platform and bring them together in one solution. The films and premium programs funded by advertising deserve first class treatment, as well as other content enjoyed daily by consumers, instead of being orphaned in another standalone application. "