ViacomCBS sets March 4 as the launch date for Paramount Plus, the company’s effort to join the direct consumer streaming revolution with its larger competitors.
The enrollment service starts on that date in the US and Latin America. ViacomCBS will present a virtual investor presentation on February 24 outlining the company’s evolving flow strategy, as well as the financial results for the fourth quarter and full year for 2020.
Paramount Plus is an extensive trademark of CBS All Access, the subscription service launched in 2014, which combined live streaming of CBS’s network programming via its 150 local affiliate companies, including NFL games, with a menu of original series, capture- viewing and library programs. With the relocation, Paramount Plus will also include dedicated hubs for ViacomCBS ‘core cable features, including Nickelodeon, MTV, BET and Comedy Central, for a total of approximately 30,000 titles. Currently, CBS All Access believes about 8-9 million subscribers.
ViacomCBS CEO Bob Bakish has made the All Access expansion a top priority since the merger of Viacom and CBS Corp. in December 2019. The investor offering on February 24 will discuss ViacomCBS’s position with a large footprint in the ad-supported streaming arena with the growing Pluto TV, as well as its subscriber offerings with Paramount Plus and the standalone Showtime app. Paramount Plus also has an ad-supported component through the CBS live streams and the CBS News, sports highlights and ‘Entertainment Tonight’ brand channels that complement the mothership Eye on CBS All Access.
ViacomCBS does not have the balance corresponding to Netflix or Disney for spending on streaming content. Bakish’s goal, set out in December, is to build a “linked ecosystem of differentiated offers for free and paid streaming”.
ViacomCBS ‘lack of a clear wall plan for Wall Street was a blow to the stock, which fell to just under $ 12 when the coronavirus crisis hit the US in March 2020. But the news about the launch date of Paramount Plus and investor offering comes as ViacomCBS shares gradually climbed. The stock has risen 80% over the past six months after closing at $ 45.30 on Friday, up 35% for the current year.
Shares have undoubtedly been boosted by recent ViacomCBS distribution agreements with virtual MVPDs, particularly YouTube TV and Hulu, which promise to improve the company’s main revenue line. That plus a better-than-expected advertising market and a more ambitious streaming strategy, ViacomCBS has garnered positive comments from influential analysts over the past few weeks.
“We have written positively about our expectations for Paramount + and said we think the platform could be a winner in the power wars, given the mix of strong IP, news and sports,” Alexia Quadrani, JPMorgan, said in a comment written on January 12th.
ViacomCBS has said Paramount Plus will launch in Australia on March 25 and mid-year. The Canadian version of CBS All Access will be shown as Paramount Plus on March 4, but the expanded content range will be available later this year.