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Since its launch in February 2013, Rabbit TV has assembled what it claims is the world’s largest online library guide of freely available TV shows, movies, live events, and in doing so has amassed over 2 million paid annual subscribers in the US. The low price tag of the subscription, $10 per year, encourages more rapid subscriber growth according to the company, 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.
Rabbit TV says its business-friendly, diplomatic model doesn’t interfere with existing cable licensing agreements, yet addresses the cord-cutters and zero-TV households, allowing the networks to essentially ‘double up’ on revenue.
“Last year, a survey determined the average person would pay $12 a month for online-only access to HBO’s seven channels,” said William Mobley, FreeCast CEO. “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 realise how much money they’re leaving on the table.”