Paramount+ Could Be Bundled with More Pay-TV Plans in Future, CEO Says
Paramount is open to distribution agreements with more providers that will give linear subscribers access to its streaming services.
The Disney-Spectrum carriage deal which was struck in September was a landmark agreement. It allowed Spectrum TV customers to log into ad-supported Disney+ at no additional cost, and Spectrum is now paying Disney a wholesale rate for those users.
- Paramount Global CEO Bob Bakish says it’s “possible” Paramount+ could be bundled with pay-TV plans in the future.
- Paramount+ with Showtime is already offered via some providers, and the company has a lot of experience with such bundles in Europe.
- Paramount and other legacy media providers are trying to find the right balance between linear and streaming as the market evolves.
Is Paramount+ Coming to a Cable Bundle Near You?
At the time, speculation instantly began as to whether or not the Disney-Spectrum arrangement would become the new standard for pay-TV operators. Paramount Global CEO Bob Bakish had the chance to speak about that potential during his company’s quarterly conference call with Wall Street analysts to discuss its earnings report. Bakish not only agreed that more bundling was possible but said that his company had already made some deals regarding the distribution of Paramount+ with Showtime with pay-TV plans.
“It’s worth noting that we have already finalized agreements with multiple distributors to offer Paramount+ with Showtime to their customers as a true multi-platform product,” Bakish said. “Importantly, this includes linear subscribers getting app credentials. That’s where we are and where we’re headed on distribution.”
He also stressed that it was important to remember not all providers have the same goals. Distribution of one streaming service with a cable plan doesn’t necessarily mean that the company’s customers would value another streamer’s content the same way, but Paramount can be flexible in helping to meet a given provider’s needs.
“Operators have different priorities, but we’ve shown that we can adapt our partnerships to accomplish common objectives,” Bakish explained. “As we go forward, it is possible that some of our partners will embrace the strategy that more tightly integrates [streaming] into the pay-TV bundle. And we expect that if they do, the bundles would have many of the same advantages we’ve observed in the various hard bundles we’ve deployed internationally, namely a dramatically lower cost of acquisition and improvement in streaming churn, and it may improve TV ecosystem trends as well.”
What Are the Advantages, Drawbacks of Bundling for Customers?
The biggest advantage of offering streaming services bundled with pay-TV plans for consumers is that it helps them save money. As noted above, Spectrum TV users save $8 by not having to pay to access ad-supported Disney+ each month. Bundling allows providers to offer multiple video products with wide ranges of content, and can usually dramatically lower the price from what customers would end up paying if they bought those services a la carte.
One thing for users to be wary of in the age of bundling, however, is the potential for reduced choice. If cable companies insist on getting exclusivity from whichever streamer they partner with, users could be forced to switch to that company’s bundle if they want to get access to the particular streamer the company has allied itself with, or just pay more to subscribe to the streaming platform alone.
Either way, a future of aggregation and bundling is coming. Paramount is clearly willing to participate in that future, but whether it will be a boon or a drawback for customers in the long term remains to be seen.
Paramount Plus
Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr. and more. The lineup includes “1883,” “Tulsa King,” “Star Trek: Discovery,” Nickelodeon’s “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime.