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Plex makes most of its money to-date with the Plex Pass, a subscription tier for users who want to access premium features that include the ability to record over-the-air television, download media to mobile devices for offline viewing and more. “We haven’t had to go raise silly money to get this done.” “We built a business that’s growing, that’s self-sustaining,” said co-founder and chief product officer Scott Olechowski. And for some time, it has been operating profitably. Over its first 10 years, the company raised just $11 million in funding. The company’s headquarters in Los Gatos, the small town south of San Francisco that also has long been home to Netflix and Roku, is housed in an unassuming two-story building that once housed a local real estate agent. Plex has around 100 employees, but most of them work remotely from all corners of the world. Those numbers are especially remarkable considering that Plex has been running a very lean operation. On Android, it has been installed more than 10 million times.Ī Media Startup That’s Actually Making Money Those claims don’t sound very far-fetched: On Roku, Plex’s app gets more usage than Spotify and ESPN. Plex has yet to announce its number of monthly active users executives only told Variety that the company had 20 million registered accounts, and that the app is being used by “millions and millions” of people. “That’s been a big chunk of our growth over the last couple of years,” said Valory. The latter has been a hit with cord cutters.
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And over the last three or so years, Plex has been adding a number of new content sources to its app, including free news videos, web shows, podcasts, subscription music streaming powered by Tidal, and over-the-air broadcast TV with DVR functionality. In the following years, Plex focused much of its energy on extending its reach, launching apps for mobile devices, smart TVs, game consoles and streaming boxes at a rapid pace. “The first three to four years was all about building the underlying infrastructure,” recalled Valory.
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That server helps organize digital media libraries, and is capable of streaming content from someone’s home to a Plex app on their phone, or from their home office PC to the Roku Plex app in their living room.
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Key to this has long been the Plex Media Server, a piece of companion software Plex users are running on their home PCs, network-attached storage drives or similar devices. The first couple of years, Plex developers focused on building some core functionality for users with existing digital media collections.
Originally launched as a hobbyist project to develop software for media center enthusiasts, Plex incorporated as a startup 10 years ago this December. This goal of becoming the premier destination for consumers’ digital media needs has been a long time coming for Plex. A Masterplan for Digital Media, 10 Years in the Making “75-85% of the content you care about, you’ll get in one beautiful app,” Valory said. However, they are confident that they’ll be able to serve up much of the rest, including movies, TV shows, podcasts, news and webisodes. Plex executives know that they will never be able to offer access to everything you might want to watch - Netflix originals in particular will likely not be available any time soon. “This is going to be the one place for the media that matters most to you,” added the company’s vice president of marketing Scott Hancock. “You shouldn’t have to go to a lot of different apps to get the content you care about,” said Plex CEO Keith Valory in a recent conversation with Variety.
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