Media stocks experienced a significant uptick on Friday in response to a The Wall Street Journal report suggesting that Apple and Paramount Global are engaged in preliminary discussions to provide a bundled package featuring their respective streaming services.
According to the report, there have been discussions about combining Apple TV+ and Paramount+ in a bundled offering that would be more cost effective than subscribing to the two services separately.
Media Stocks Rise After Apple, Paramount Streaming Bundle Report
CNBC reported that Paramount's stock rose by nearly 10% on Friday, and Warner Bros. Discovery, the owner of the Max streaming service, saw an increase of over 8%.
Paramount's year-to-date performance shows a decline of approximately 6%, while Warner Bros. Discovery, reporting a streaming profit in the third quarter, has witnessed an increase of around 19%.
The potential bundling of Paramount+ and Apple TV+ appears promising due to the distinct content strategies of the two services. Apple TV+ is recognized for its extensive library of exclusive content, while Paramount+ has a substantial back catalog featuring well-known TV shows and movies.
Emerging Trend of Bundling Streaming Services
The practice of bundling streaming services is emerging as a significant trend in the industry, with discussions on this strategy gaining traction.
Major players in the streaming sector, Netflix and Max, joined forces with Verizon to package their services at a reportedly reduced rate of $10 per month, providing a more economical option compared to the standard $17 combined subscription fee. This bundling trend is not limited to streaming services alone.
In a resolution following a dispute earlier this year, Disney and Charter reached an agreement wherein specific Spectrum customers will gain access to the ad-supported Disney+ plan. Some experts anticipate that this move will become more prevalent in the industry.
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