Paramount Global CEO Bob Bakish is open to the idea of collaborating with other players in the media industry to create a more compelling streaming bundle. During the company’s second-quarter earnings call, Bakish expressed his belief in the power of bundling as a method of value creation in the media space. As Paramount+ saw a modest increase in subscribers to 61 million, the company integrated Showtime into its flagship streaming service, resulting in a 47% increase in revenue for Paramount+.
While Paramount has pursued bundling in various forms in the past, Bakish acknowledged the need to explore additional opportunities in bundling. Given Paramount’s scale compared to tech giants and other media rivals, there has been speculation about potential mergers and acquisitions. However, due to regulatory hurdles and family control of the company’s shares, a streaming alliance may be a more viable option. Paramount previously entered into a joint venture with Comcast, SkyShowtime, to reach European markets with a reduced financial commitment.
Bakish emphasized the importance of bundling in the streaming industry, citing its ability to provide access to consumer connections and attractive margin characteristics. Paramount+ With Showtime is an example of leveraging bundling to drive revenue growth, subscription gains, and operational efficiencies. The integration of the two services has resulted in $700 million in cost savings and a stronger product for consumers and partners. The data also shows that customers who subscribe to the bundle consume over 40% more titles, highlighting the enhanced consumer engagement that an integrated product can deliver in both streaming and linear TV.
