Startup OTT service Vidgo raised eyebrows in the video industry last October when it suddenly re-emerged from oblivion and declared plans to launch into a hyper-competitive virtual pay TV market that was entering recession.
Eight months later, the Atlanta-based platform’s CEO, Shane Cannon, said Vidgo remains on track to exit beta this summer, and is currently in the process of closing out a series-A funding round.
“We’re comfortable with what we’re doing,” Cannon said. “Our customer-acquisition costs have been much better than expected.”
Indeed, as Sling TV, DirecTV Now, Hulu Plus Live TV, YouTube TV, fuboTV and Sony PlayStation Vue are targeting largely the same cord-cutters with similar channel mixes, Vidgo has found a niche it seems to have all to itself.
Vidgo is targeting Latinos with Spanish-language bundles and a prepaid economic model, distributed primarily through a nationwide network of wireless stores.
Vidgo is packaging 15-plus channels for $15 a month and 24-plus networks, many of which appeal to sports-loving Spanish speakers, for $24.99. Cannon said that 70% of platform viewing occurs on sports channels like beIN Sports.
Vidgo is also working with FreeWheel and developing its advanced advertising chops. “Targeted ads will help cover programming costs,” Cannon said. I’ve been told by peers that smart TV ads are garnering CPMs close to $20.”