Apple TV+ and Paramount+ are in discussions to bundle their services together. This boosted Paramount Global’s share price by almost 10%, who would be attaching itself to the largest company in the world.
Following the end of Netflix’s monopoly on streaming, the number of streaming services has exploded. Some of the biggest bundling or mergers include Showtime with Paramount, Discovery with HBO, and Hulu with Disney. Deadline says:
Paramount Global shares closed up nearly 10% Friday, leading entertainment stocks higher after the Wall Street Journal reported that Paramount Global and Apple are discussing bundling their respective streaming platforms at a discount.
Consensus is emerging that there may too many standalone services for the market to bear. Bundling can reduce the costs to consumers, lowers churn for provider and otherwise make sense, industry executives and Wall Street agree, anticipating more of it. It’s a move short of the outright M&A that many also predict as media companies grapple with streaming red ink and a decline in linear television.
Apple TV+’s catalog is almost entirely produced in-house, including award-winning movies, while Paramount+ has very popular shows. Discovery also too this “opposites” approach when it released its new Max subscription, combining HBO’s prestige TV with reality TV staples from Discovery. CNBC continues:
The report comes as talk heats up in the media industry about bundling rival streaming services together.
Streaming leader Netflix and Max entered into an agreement with Verizon to bundle the two services at a reported $10 a month, less than the $17 the combination would normally cost, the Journal previously reported. Liberty Media Chairman and Warner Bros. Discovery board member John Malone has often discussed what streaming bundles could look like. Disney currently offers a bundle of Hulu, Disney+ and ESPN+.
Apple TV+ would also benefit from Paramount’s large catalog, which would help offset its recent price hike from $5 to $7 per month. Bundling in entertainment is not new of course, with cable TV inventing the concept. The price transparency and ease of cutting of streaming is new, however,
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