Low-cost, family-oriented streaming service Frndly TV said it will add local TV stations to its lineup in six markets this month.
The stations will give Frndly subscribers more access to local news and syndicated programming.
“We reached out to a couple of broadcasters and they were open to it,” Michael McKenna, co-founder and chief programming officer of Frndly TV, told Broadcasting+Cable. “We hope this is a good start that resonates with our viewers and is providing support to the broadcasters.”
Frndly TV will not be raising prices because of the addition of the stations. Stations that aren’t Big Four affiliates rarely get substantial retransmission carriers from cable and satellite multichannel video programming distributors (MVPDs) , or from streaming virtual MVPDs, like Frndly TV.
Because of the way it manages programming expenses, Frndly TV has been profitable almost from the start, and remains in the black, according to McKenna.
Five of the stations that will appear on Frndly TV are owned by E.W. Scripps. Frndly previously made a deal to carry Scripps multicast networks including Bounce, Ion, Grit, Laff and Court TV.
The sixth station is Marantha Broadcasting Co.’s WFMZ in the Philadelphia market.
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“This agreement is a milestone for our station because Frndly TV will be the first vMVPD to launch WFMZ, thus providing its subscribers with access to 10 hours per day of live local news as well as the station’s other great programming,” said Barry Fisher, president and general manager of WFMZ.
At a time when viewing is moving to streaming, stations are looking for ways to be watched by consumers, who have cut the cord but may not be using an antenna.
“Clearly WFMZ viewers are discovering OTT streaming options for their viewing,” Fisher said. “Between our OTT linear feed and 69News FAST channel combined, we are now streaming over 1 million hours a month to our viewers, and growing.”
Frndly TV is putting the stations it is adding at the top of its channel guide, making the stations easier to find.
The stations’ programming will be available only in their local markets. Frndly does not get advertising inventory on the stations to sell.
Frndly stays in contact with its subscribers and one of the things they said they wanted on the service was local stations.
These deals provide Frndly customers with the local content that they're looking for — primarily local news — while holding down the cost for customers who are not highly focused on sports, McKenna said.
Frndly's basic programming package costs $6.99 a month.
Frndly will be able to tell what effect adding local stations has on adding subscribers, usage and churn.
“I am a believer in local news, and I think that it's important to have a healthy ecosystem for local news,” McKenna said.
Frndly could have gotten local news through the 24-7 streaming channels many stations have launched. But McKenna said Frndly was more interested in the blend of programming local stations offer.
“If you want somebody to stick on the channel, you’ve got to provide something more than news,” he said. “Local news maybe brings them in, but Judge Judy keeps them on the platform.”
Should it turn out that viewers like the local stations, Frndly will look to add more. It has already spoken to additional broadcasters, some of whom were open to Frndly’s approach, while others were looking for a big retransmission payment.
Frndly had a good year in 2023, according to McKenna, with growth in subscribers and revenue and 10% to 15% growth in hours viewed.
Frndly hasn’t released subscriber numbers in a while. The company last said it had 750,000 subscribers, and McKenna said it has grown since then, but hasn’t yet hit the million subscriber mark.
Last month, Parks Associates found that Frndly had the highest customer loyalty among vMVPDs.
“I think people like the idea that it's not 500 channels and it's not hard to find content, so we don't have a goal of adding a lot of content,” McKenna said.
“We are trying to maintain a small, relevant bouquet of channels,” he said. “We know who our subscribers are and we try to lean into what they want.”
Price is important to Frndly subscribers, but so is having the right programming.
“You have to try and figure out how best to deliver on both sides of that equation,” McKenna said.
In addition to WFMZ, the stations Frndly will be adding are:
- KCDO, Channel 3, Denver, CO DMA (Scripps - Independent)
- WMYD, Channel 20, Detroit, MI DMA (Scripps - The CW Affiliate)
- WACY, Channel 32, Green Bay, WI DMA (Scripps - Independent)
- KMCI, Channel 38, Kansas City, MO DMA (Scripps - Independent)
- WHDT, Channel 9, West Palm Beach, FL DMA (Scripps - Independent)
Jon Lafayette
Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.
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