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Brewing Competition Compels Paramount To Club Showtime Streaming Service With Paramount+

Benzinga · 09/14/2022 07:44
  • Paramount Global (NASDAQ:PARA) weighed aborting its Showtime streaming service and shifting its content into Paramount+, the Wall Street Journal reports.
  • Showtime’s $10.99-per-month service features programming from the premium channel, including “Billions” and “Yellowjackets.” 
  • Competition from Netflix Inc (NASDAQ:NFLX) and Amazon.com Inc (NASDAQ:AMZN) to newer entrants like NBCUniversal’s Peacock and Paramount+ weighed on more minor streaming services like Showtime.
  • Paramount explored closing the stand-alone Showtime service in conversations with at least one major pay-TV partner.
  • Combining the two streaming services could also help Paramount Global reduce technology and overhead costs during economic uncertainty.
  • The industry witnessed bundling to pricing to examine which products should survive in the marketplace. 
  • Paramount Global has already moved to bring its two streaming services closer together while maintaining separate apps for each. 
  • Warner Bros. Discovery, Inc (NASDAQ:WBD) looked to combine its Discovery+ service with its flagship product, HBO Max. Walmart Inc (NYSE:WMT) aimed to offer Paramount+ free to subscribers of its Walmart+ membership program.
  • Paramount clocked 19% revenue growth in the second quarter of FY22 to $7.78 billion, beating the consensus of $7.52 billion.
  • Paramount+ added 4.9 million subscribers in the quarter, bringing Paramount+ total subscribers to almost 43 million.
  • Price Action: PARA shares traded lower by 0.13% at $22.50 premarket on the last check Wednesday.