21 FEB 2020

VIACOMCBS ANNOUNCES A NEW SUBSCRIPTION VIDEOSERVICE

The service called "'House of Brands" will be expanded on the CBS All Access application with more content from the entire cluster. It also published the first quarter financial results, after the creation of the company last December.

21 FEB 2020

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ViacomCBS announced that it is creating a new subscription video service that will be expanded in the CBS All Access application for USD 6 per month (USD 10 for the non-commercial version) by adding more content from other parts of the conglomerate. ViacomCBS defined it as a "House of Brands" product, with the idea that it can gather its various entertainment, news, sports and movies properties to reach a wider audience.

Bob Bakish, CEO of Viacom for the past three years, now in charge of the merged company, said: “We will take CBS All Access and expand it to be a solid and compelling offer to serve the broad segment of paid streaming. This offer will affirm and expand the value of entertainment, news and sports content through experiences on demand and live for audiences around the world."

The executive acknowledged that the service will be a "powerful combination of linear live through more than 200 local CBS stations, in addition to on-demand content that covers news, sports, movies, drama, reality, children and more with an e-platform. global infrastructure from which to market and scale it."

The largest assets of ViacomCBS are CBS, MTV, Nickelodeon, BET, Comedy Central, Paramount Pictures and Showtime. It also owns Pluto TV, the advertising-supported service for consumers who wish to broadcast for free; while Showtime points to a higher end of the market with an online subscription of USD 11 per month.

The big challenge for ViacomCBS seems to be where to place its content as it needs to continue feeding its cable networks, the largest money producers, while choosing which titles to choose for CBS All Access in order to boost subscriber growth and which ones to sell to Rival streaming services that are willing to pay for them.

On the other hand, the company published little flattering results for its first quarter as a unified company, and its shares fell 18 percent yesterday, Thursday. Analysts had forecast at least USD 7 billion of revenue for the period ending December 31, but the company received only USD 6.87 billion in the midst of a decline in traditional viewers, lower spending on political advertising and A weak box office presentation. The merger of Viacom and CBS closed on December 5.

This offer will affirm and expand the value of entertainment, news and sports content through experiences on demand and live for audiences around the world” Bob Bakish CEO, ViacomCBS