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Business Operations Business Models

How Does Pluto TV Make Money (Business and Revenue Model)

The Pluto TV business model

How Does Pluto TV Make Money?
Here’s what you should know:
  • What is Pluto TV, and how does Pluto TV work?
  • How does Pluto TV make money?
  • Advertising (from Commercial Breaks)
  • Pluto TV Subsidiaries, Acquisitions, and Exits
  • Pluto TV profit and revenue
  • What is the Pluto TV business and revenue model?
  • Pluto TV funding, net worth, and valuation

How does Pluto TV make money and how is it free to watch? Well, here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the Pluto TV business model, their profit and revenue, and how Pluto TV works.

What is Pluto TV, and how does Pluto TV work?

Pluto TV is a free streaming service that allows users to watch live TV, movies, and TV shows for free without a subscription.

Founded in 2013 by Tom Ryan, Ilya Pozin, and Nick Grouf, Pluto TV went on to get acquired by ViacomCBS (now Paramount Global) for a reported $340 million on January 22, 2019.

Since that time, Pluto TV now has more than 68 million monthly active users worldwide.

How does Pluto TV work? To watch Pluto TV, users can access it through a few different ways such as streaming devices (Amazon FireStick, Roku, Apple TV, etc.), smart TVs, downloading the app, or by simply heading over to their website and streaming it there.

Once on the Pluto TV platform, users can instantly access over 150,000 hours of content made up of 1000s of on-demand movies and 100s of channels that they can watch and enjoy for free.

Some of Pluto TV’s competitors include Tubi TV, Peacock, Sling TV, NetflixRoku, Hulu, YouTube TV, Redbox, and other streaming platforms.

Pluto TV App in Apple App Store | Pluto TV Business Model | How Does Pluto TV Make Money? | How Does Pluto TV Work?
Source: Apple App Store | Pluto TV

How does Pluto TV make money?

According to its parent company Paramount Global, Pluto TV now has more than 68 million monthly active users worldwide.

So how does Pluto TV make money off of all those active users?

Below is a breakdown of how much money Pluto TV makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how Pluto TV makes money (in 2022):

Pluto TV has a revenue model that makes money in just one (1) way; advertising through commercial breaks.

#1. Advertising (from Commercial Breaks)

Because Pluto TV is an ad based supported network and does not have a subscription service, Pluto TV makes all of its money through advertising from its commercial breaks.

So, Pluto TV does have commercials? Yes, this is how they generate all of their ad revenue. Although they do not make public how much it costs to advertise on Pluto TV.

According to Pluto TV, they have more than 400 global content partners, 200+ premium content partners, and 30+ distribution partners. Which you can see by zooming in on the image below.

How much does it cost to advertise on Pluto TV? | Pluto TV Business Model | How Does Pluto TV Make Money? | How Does Pluto TV Work?
Source: Pluto TV

Note: Pluto TV does not have an ad free, paid subscription option and make their money 100% through commercial ads.

Pluto TV Subsidiaries, Acquisitions, and Exits

Aside from Pluto TV being acquired by ViacomCBS (now Paramount Global) for $340 million, Pluto TV has had its own fair share of acquisitions as well.

To date, Pluto, Inc. has made a total of 1 acquisition.

Mergers and acquisitions business model
Source: Crunchbase | Pluto TV

Pluto TV profit and revenue

Pluto TV has not released any official reports in regards to company earnings.

Note: Because Paramount Global, the parent company of Pluto TV, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Paramount’s publicly released financial reports, including annual reports, through Paramount’s investor section on their website.

What is the Pluto TV business and revenue model?

Pluto TV makes money through a few revenue models that they combine within their company, they are:

  • Advertising business model
  • B2B2C (partnerships) business model
  • Mergers & acquisitions (M&A) revenue model

Pluto TV funding, net worth, and valuation

According to Pluto TV’s Crunchbase profile, Pluto TV has raised $51.8 million over 6 rounds.

On January 22, 2019, Pluto TV was acquired by ViacomCBS (now Paramount Global) for $340 million, per reports.