These days of cable TV we’re all used to paying for a television service. Therefore, a site that offers the same service for free may seem suspicious to us. But you can use Pluto TV and watch its channels for free. Therefore, today we will see a free television platform, and we will see why Pluto TV is free, and how does that platform make money?
Why is Pluto TV free?
We are so used to pay for our television services by cable and satellite or streaming, that we forget for the moment that television was free. It was transmitted by land. To watch television, you only needed to have a television and an antenna.
How did those channels make money? In the same way that They do it today: With advertising breaks. This is the oldest and most popular way that television channels have used to earn money.
Although the terrestrial signal was profitable, this type of signal could not go very far; That is why cable television was created in the 1950s. This method of distribution offered better quality and could reach more sites, but to use it you needed to subscribe to a cable company.
We live in the time after this change, and we are used to pay a cable company to watch TV. For this reason, the popular belief is that by paying we are covering the expenses of the channels we watch.
It is impossible to speak of all the countries of the world, but in general, that belief is incorrect. When we pay, the money goes to the cable company to cover the expenses of satellites, buildings, exchanges, etc.
TV channels make money from their ads. Every time we watch a show and there is a commercial break, the money you paid for that commercial goes to the television channels. So, in short; TV channels make money from advertisements, while cable companies that distribute those channels charge their customers directly.
This television system is sustainable, and that is why it has remained the same for the last decades. However, this system is not to everyone’s taste, since it involves spending a significant portion of programming watching advertisements.
From this model, two models have emerged in direct contrast. First, in the 1970s, pay TV emerged, and the first channel of its kind was HBO. In the pay TV model, the customer pays directly for the channel’s programming, and thus the channel has no need to display advertisements.
In 2005, a company was born that would change the way we use the internet. The company was YouTube, and thanks to it, film studios realized that the future was in using internet streaming.
Using the pay TV model, Netflix created its new model in which, for a subscription, you could watch movies without ads or cuts through the internet. Other companies followed suit. So what is Pluto TV and how does it work?
Pluto TV is in the other category: The opposite model to pay TV. Since Internet television does not involve the costs of cable television, content can be transmitted much cheaper.
Unlike Netflix, Pluto TV broadcasts TV channels like a cable company would. And besides broadcast channel ads, also add your own ads.
What does this online TV platform gain?
Pluto TV add your own ads on the website, which they use to generate money. For this reason, Pluto TV’s streaming model allows the service to be free to use on your Smart TV. This model is popular on social platforms like YouTube, and so far it has proven to be useful and profitable. However, the company reserves the right to change its monetization method and become a paid service in the future.
In conclusion, Pluto TV is free because it adds ads to your site. And the channels allow it, since their own monetization model is not interrupted.