SpongeBob, “Star Trek” and the Super Bowl have attracted new subscribers to ViacomCBS’s streaming platforms.
The company, led by Shari Redstone, rebranded its long-running streaming service as Paramount+ in March, while also providing it with a slew of new shows, films and sports programming. The company also added content to Pluto, its free streaming service.
The stronger commitment to digital media has created a revenue powerhouse, with streaming sales jumping 65 percent to $816 million in the first quarter, the company reported Thursday. ViacomCBS said it added 6 million new streaming subscribers to both Paramount+ and a smaller streaming service, Showtime, bringing the total to 36 million.
The company doesn’t disclose how many customers are coming to each platform, but the majority have bought Paramount+, a cheaper service at $6 a month with ads, or $10 a month without commercials. ViacomCBS plans to offer a new tier at $5 a month this June in an effort to drive more subscribers. That should help the company sell more ads, offsetting the price drop.
true profitability only after it surpassed 200 million subscribers last year.
The company said it will invest more in original series and films for Paramount+, and, in a marked switch from its previous strategy, it plans to hold back more of its own productions for the service, instead of licensing them to other streamers.
In 2019, the company sold rights to “South Park,” one of its most popular franchises, to AT&T’s HBO Max for $500 million for several years. It has also sold shows such as “Tom Clancy’s Jack Ryan” to Amazon Prime Video and “Thirteen Reasons Why” to Netflix. Now, ViacomCBS will try to fill its content pipeline from its own studios.
jumped nearly tenfold in the past year.
Most of those gains had come as a result of a heavily leveraged trading strategy from a single investment firm called Archegos Capital Management, led by the investor Bill Hwang. At one point Mr. Hwang was responsible for $20 billion of ViacomCBS stock, or a third of all shares.
It all came tumbling down last month, when lenders demanded their money back. ViacomCBS also suffered as its share price plummeted from a high of $100 to about $38 on Thursday.