ViacomCBS VIAC is focused on delivering diverse content to its global consumers.

ViacomCBS added 4.3 million global streaming subscribers, reaching nearly 47 million, in the third quarter of 2021. It also achieved 79% year-over-year growth in its streaming subscription revenues.

The robust top-line growth of the company can be attributed to subscriber growth and increased consumption on Paramount+ fueled by a diverse global content portfolio.

ViacomCBS’ Paramount+ has been witnessing new subscriber growth driven by an expanding content portfolio. Paramount+ hosts a portfolio of more than 2,500 movies and 30,000 TV episodes, including content on popular franchises such as Star Trek and SpongeBob.
 

The streaming service, which has two types of subscription plans, offers full access to the complete Paramount+ catalog of on-demand programs to any plan holder.

Several upcoming exclusives and originals for the service are scheduled for release in the forthcoming months. Some of them include A Quiet Place Part II, Snake Eyes, Transformers 7, Mission: Impossible 7 and Dungeons and Dragons.

Recently, ViacomCBS announced an enhanced content leadership structure focused on its global streaming services. The newly-aligned structure will ensure that ViacomCBS is well-equipped to continue producing compelling and varied content at scale and deploying the right mix of content all across its ecosystem of streaming platforms.

ViacomCBS CJ ENM to Launch Paramount+ in South Korea

ViacomCBS recently announced a partnership with CJ ENM.

The deal enables co-productions for original films and series, and content licensing and distribution across ViacomCBS’ and CJ ENM’s leading streaming services.

As part of the deal, Paramount+ is set to debut in South Korea in 2022 as an exclusive bundle with CJ ENM’s streaming service, TVING. This will mark ViacomCBS’ first entry into an Asian market.

Paramount Television Studios and CJ ENM’s Studio Dragon will co-develop scripted series in English language, based on Studio Dragon’s titles for exhibition on Paramount+.

ViacomCBS and CJ ENM will co-finance and co-develop movies for both theatrical and streaming releases. They will also co-finance new Korean series for global distribution on Paramount+. Pluto TV is scheduled to launch a dedicated CJ ENM brand channel on Dec 14, which will feature Korean content.

Expanding Partner Base & Content Portfolio to aid ViacomCBS

ViacomCBS’ expanding partner base and content portfolio will boost the top line. Apart from the partnership with CJ ENM, the company partnered with Comcast CMCSA to launch a European streaming service in 2022, called SkyShowtime.

The multi-year agreement includes the extended carriage of ViacomCBS’ portfolio of pay-TV channels such as Showtime, Paramount Pictures and Nickelodeon.  SkyShowTIme will have more than 10,000 hours of content and include all new and old releases of the companies.

Recently, ViacomCBS announced that ViacomCBS Networks International (VCNI) completed the acquisition of a majority stake in Fox TeleColombia and Estudios TeleMexico from The Walt Disney DIS.

The acquisition, which provides VCNI with complete access to the studio operations of FoxColombia and Estudios TeleMexico in Mexico and Colombia, will improve ViacomCBS’ capabilities to produce Spanish-language content.

It will additionally provide ViacomCBS with complete access to FoxColombia’s and Estudio TeleMexico’s robust content portfolio. The content will boost ViacomCBS’s streaming platforms Paramount+ and Pluto TV along with its linear networks globally.

In the streaming space, ViacomCBS’s Paramount+ faces stiff competition from Netflix NFLX, Comcast’s Peacock, Disney’s Disney+ and HBO Max.

Netflix is still dominating the streaming market. In third-quarter fiscal 2022, Netflix added 4.38 million global paid subscribers compared with 2.2 million in the year-ago quarter. Netflix expects to add 8.50 million subscribers in the fourth quarter, raising the total number of global streaming subscribers to 222.06 million, indicating 9% year-over-growth.

Comcast is benefiting from an increasing broadband subscriber base and a growing momentum in the wireless business. Additionally, its streaming service Peacock gained significant traction amid the coronavirus-led increased media consumption.

Disney recently revealed that it will increase its total content budget by $8 billion year over year, reaching a total of $33 billion in 2022. The decision was based on the intention to support its direct-to-consumers services, which primarily includes Hulu, Disney+ and ESPN+.

Disney plans to broadcast approximately 50 titles for both theatrical release and streaming in fiscal 2022. Walt Disney Animation Studios will release Baymax and Moon Knight next year, its first-ever animated series. It also has plans to launch a new Marvel series on Disney+ in fiscal 2022.

Although Paramount+ faces stiff competition an expanding content portfolio is a key catalyst. ViacomCBS’ solid cable network portfolio is a major growth driver. The growing traction of BET, Comedy Central, Nickelodeon and Showtime is anticipated to boost the top line.

Currently, ViacomCBS holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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