Paramount+ Considers Merger with Another Streaming Service for Expansion
Paramount Global is currently engaged in active discussions regarding a potential merger involving its streaming service, Paramount+, with an existing streaming platform, as reported by CNBC on Monday. The entertainment powerhouse has been holding meetings with executives from various media and tech companies to explore the possibility of merging Paramount+ with another streaming service. While Paramount declined to provide any comments on the report to TheWrap, it is suggested that the merged platform could potentially be co-owned by Paramount Global and another company.
Among the companies considering a merger with a streaming service is Warner Bros. Discovery, according to the report. This merger would entail Paramount+ joining forces with Max, just over a year after the rebranding of HBO Max following the Warner Bros. Discovery merger. Earlier this year, Warner Bros. Discovery was in discussions to merge with Paramount Global as a whole, but these talks came to a halt in February.
The pursuit of a streaming partner aligns with the priorities outlined by Paramount Global’s new Office of the CEO, led by Chris McCarthy, who serves as both Paramount co-CEO and Showtime/MTV Entertainment Studios CEO and president. During a town hall on June 25, McCarthy highlighted the company’s consideration of establishing a deep, long-term relationship with a leading technology platform that already possesses the scale Paramount Global aims to achieve. This partnership would result in a potent combination to drive increased viewing minutes and profits.
Alternatively, Paramount Global could opt to collaborate with one or more other SVOD (subscription video on demand) players, leveraging the vast amount of hit content that could potentially emerge from such a deal. McCarthy emphasized the potential for Paramount Global to share in all non-content expenses through this avenue, citing the significant interest from potential partners in both strategic options due to the strength of Paramount’s content library, track record, and volume of successful productions.
The evolving landscape of streaming services and the strategic considerations being deliberated within Paramount Global’s leadership underscore the dynamic nature of the entertainment industry. As discussions progress and potential mergers are explored, the outcome could shape the future of streaming platforms and content distribution in the rapidly evolving digital entertainment sphere.
