Paramount jumps on report it's in talks to bundle streaming service with Apple

The Wall Street Journal says early talks focus on a Paramount+/Apple TV+ offering priced at a discount to streaming rivals such as Netflix.

Dec 1, 2023 - 19:30

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Paramount jumps on report it's in talks to bundle streaming service with Apple

Updated at 8:28 AM EST

Paramount Global (PARA) - Get Free Report shares jumped Friday following a report that suggested the group is in early-stage talks to bundle its content with Apple (AAPL) - Get Free Report.

The Wall Street Journal reported that Paramount and Apple are looking to create a streaming bundle that will be priced at a discount to rivals such as Netflix (NFLX) - Get Free Report by combining content from Paramount+ and Apple TV+ into a single offering.

The Journal reported similar plans from Netflix and Comcast (CMCSA) - Get Free Report-owned Max last month, through a deal with Verizon (VZ) - Get Free Report.

Streaming services are look to win over new customers who have weathered sharp price increases across all major streaming hubs over the past 12 months.

Paramount Global shares were marked 5.4% higher in pre-market trading to indicate an opening bell price of $15.15 each while Apple edged 0.05% lower to $189.92 each. Netflix, meanwhile, slipped 0.84% to $470.00 each.

Paramount Q3 results had lagged estimates

Paramount cautioned investors last month that a slump in ad sales and intensifying competition would clip its current-quarter earnings. It posted weaker-than-expected third-quarter profit of 39 cents a share on revenue of $6.92 billion.

Ad sales, Paramount said, were down 4% from a year earlier to $363 million, leading to a 5% decline in revenue for its TV Media division, the group's largest.

Paramount, which changed its name from ViacomCBS earlier this year, owns the Paramount CBS, Showtime, MTV and Comedy Central brands and hopes to have at least 100 million streaming subscribers by the end of 2024.

Third-quarter subscription revenue was up 59% from a year earlier to $863 million, paced by growth in its Paramount+ streaming offering, which includes NFL games and soccer matches from the UEFA Champions League.