ViacomCBS’s streaming dream comes with a catch

Paramount Global

25/02/2021 02:17

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Jennifer Saba
    NEW YORK, Feb 24 (Reuters Breakingviews) - The U.S.
broadcaster’s market value is up by $16 bln since it put a
launch date on its streaming service, suggesting the hype
enjoyed by Disney and Netflix is contagious. That’s justified if
ViacomCBS can hit its subscriber targets, but boss Bob Bakish
faces other pressures too.
    Full view will be published shortly.
    On Twitter https://twitter.com/jennifersaba
         
    CONTEXT NEWS 
    - ViacomCBS said on Feb. 24 that it expects to grow global
subscribers to between 65 million and 75 million by the end of
2024. The U.S. broadcaster said it had 30 million subscribers at
the end of 2020.
    - The company is launching its rebranded streaming service
Paramount+ on March 4. It is offering two subscription tiers,
one that is ad-supported at $5 a month and a premium service at
$10 a month.
    - On the same day, ViacomCBS said fourth-quarter revenue
rose 3% year-over-year to $6.9 billion. Earnings were $783
million, or $1.26 per share, compared to a loss of $302 million,
or 49 cents per share, in the same period in 2019.
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ViacomCBS quarterly revenue misses estimates     urn:newsml:reuters.com:*:nL4N2KU571
Link to release    http://ir.viacomcbs.com/news-releases/news-release-details/viacomcbs-unveils-comprehensive-streaming-strategy-and-expansive
BREAKINGVIEWS-Capital Calls: India boosts Disney streaming   
 urn:newsml:reuters.com:*:nL1N2KI1H0
BREAKINGVIEWS-ViacomCBS is stuck between blockbuster and indie  
  urn:newsml:reuters.com:*:nL1N2JF1U5
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by John Foley and Amanda Gomez)
 ((jennifer.saba@thomsonreuters.com; Reuters Messaging:
jennifer.saba.thomsonreuters.com@reuters.net))