Finance

Showtime Paramount+ may not be compatible well with cable operators

Showtime Paramount+ may not be compatible well with cable operators

News by Paramount
Para

Para

Basic
Global is considering closing $1
1
0.99 per month for the Showtime streaming service and converting content to the Paramount+ service likely not well compatible with cable and satellite operators without significant compensation.

The reason: “Cutting the wires”, which effectively cancels your cable or satellite subscription and switching to watching online video only, and “wired shaving”, which moves from an expensive multi-channel package to a cheaper package, is becoming too prevalent.

Multi-channel operators have been bleeding video subscribers for years, and making all Showtime content available to Paramount+ subscribers will likely lead to more video subscribers cutting the cord and moving all of their TVs
Television
Watch broadcast services.

Premium services like HBO
HBO
Showtime has been a huge success, losing nearly half of its subscribers over the past five years. Cable and satellite operators have also been hit hard, with the number of satellite subscribers halving over the past five years, while total multi-channel video subscriptions from cable, telecom and satellite subscribers have lost more than a third of their base, down more than 30 percent.
30
million families.

Obviously, there are too many streaming services out there currently and some of them should fail. However, management at Paramount will have a hard time pulling this merger off. Essentially, they should meet with each cable and satellite operator as Showtime is being transferred and renegotiate their contract.

Walt Disney
dis

DSN
Disney+, Hulu, and ESPN+ bundling strategy
ESPN
For $13.99 a month it has been very successful and Paramount+ has a similar product with Paramount+ and Showtime bundled together at a discounted price. However, independent independent services like FuboTV which has just over a million subscribers will have a harder time competing in the increasingly crowded online video market.

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Paramount+ subscriber numbers will grow exponentially this year as it recently struck a deal with WalMart to provide the service for free to WalMart+ subscribers. Walmart
WMT
+, offered for $12.95 a month or $98 a year, has perks like free shipping and delivery, fuel discounts, and rewards, but doesn’t have a video component. In addition, the company announced that it will be broadcasting Top Gun: Maverick
Maverick
on Paramount+ in the fourth quarter, which is likely to attract new subscribers.

“Everywhere this movie appears, it crushes it including, by the way, now in home entertainment where it’s setting new records,” Baksh said.

Warner Bros.
Bruce
. Discovery plans to integrate Discovery+ with HBO Max
MAX3
So Paramount Global is taking a page out of its guide. However, this strategy may create a sticky shock to some consumers who currently only subscribe to Discovery+ or Paramount+ as the monthly price will rise significantly when premium services are combined.

Paramount+ subscriber numbers will grow exponentially this year as it recently struck a deal with WalMart to provide the service for free to WalMart+ subscribers. Offered for $12.95 per month or $98 per year, Walmart+ offers perks like free shipping and delivery, fuel discounts, and rewards, but doesn’t have a video component. In addition, the company announced that it will air Top Gun: Maverick on Paramount+ in the fourth quarter, which is likely to attract new subscribers.

“Everywhere this movie appears, it crushes it including, by the way, now in home entertainment where it’s setting new records,” Baksh said.

Warner Bros. plans. Discovery to combine the Discovery+ service with HBO Max so that Paramount Global takes a page out of its operating manual. However, this strategy may create a sticky shock to some consumers who currently only subscribe to Discovery+ or Paramount+ as the monthly price will rise significantly when premium services are combined.

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Speaking at Goldman Sachs Cornucopia Conference on September 14, Paramount Global CEO
Executive Director
Bob Bakish said, “The media report you’re referring to is a rumor coming out of one of our distribution conversations, which, quite frankly, if we’re not having that conversation, should fire us all, because we should be having that conversation.”

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