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ViacomCBS (VIAC) Unit Set to Buy WarnerMedia's Chilevision
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ViacomCBS is expanding its presence in Latin America. The media-giant’s ViacomCBS Networks International (VCNI) is set to acquire AT&T (T - Free Report) owned WarnerMedia’s Chilevisión.
Through the acquisition, ViacomCBS will be able to distribute Chilevisión’s existing offerings in sports, entertainment and news to cater to increasing demand for Spanish content across platforms including its premium streaming service Paramount+ and Pluto TV.
Moreover, with Chilevisión, VCNI will not only expand its footprint in the region through programming but also through multiple on-the-ground events, experiences and an extensive consumer products catalog.
Further, Chilevisión has significant production capabilities. Its reach and a windowing strategy of its content pipeline through free, paid, and premium channels will serve as a valuable marketing vehicle for VCNI’s streaming platforms.
The acquisition of Chilevisión is expected to expand ViacomCBS’ content offerings and boost user engagement levels, thereby attracting advertising dollars.
Moreover, sports broadcasts have become a key medium for ViacomCBS to promote their comedies, dramas and new movies. Distribution of Chilevisión’s sports content in Brazil will also aid ViacomCBS in attracting users besides promoting other content.
ViacomCBS has been increasingly focusing on sports content off late. On Mar 25, ViacomCBS division CBS Sports announced an agreement with Lega Serie A for the exclusive U.S. rights of the Serie A Championship, the Coppa Italia and the Supercoppa Italiana.
Moreover, the company has signed a new multi-platform agreement with National Football League (NFL) that extends CBS’ relationship with the league for the next 11 years through the 2033 season.
However, solid growth prospects of the streaming market, which is expected to reach $184.2 billion by 2027, per Grand View Research, have attracted prominent tech and media companies like Apple, Discovery, AT&T and Disney (DIS - Free Report) and incumbents including Netflix (NFLX - Free Report) , Amazon and Roku. This has intensified competition for ViacomCBS.
Markedly, Netflix surpassed another major milestone by reaching 206.3 million global paid subscribers in the fourth quarter of 2020. Meanwhile, Disney+ has already gained significant traction by garnering more than 100 million paying subscribers. In fact, Disney now expects to see between 230 million and 260 million subscribers on Disney+ by 2024, which basically triples its prior guidance of reaching between 60 million and 90 million subscribers by 2024.
Nonetheless, growing traction of the company’s robust portfolio of streaming services, which includes CBS All Access, Showtime OTT, Pluto TV, Noggin and BET+, serves as a key catalyst.
Additionally, priced at a premium plan of $9.99 per month, the launch of Paramount+ in the United States is the perfect opportunity for ViacomCBS to attract new users, leveraging upon the expanded content library. Paramount+ will feature a content catalog of more than 30,000 episodes, 2,500 movie titles and over 1,000 live sporting events.
Moreover, solid adoption of this Zacks Rank #3 (Hold) company-owned free streaming service, Pluto TV, is a major growth driver. The platform offers nearly 100,000 hours of premium content to users across 25 countries. Notably, Pluto TV’s wide audience base consists of 30.1 million domestic monthly active users (MAUs) and 43 million global MAUs.
ViacomCBS’s continuous efforts to build a strong portfolio of streaming services and expand its content portfolio with new offerings are expected to boost its growth prospects and aid customer acquisition in the near term.
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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ViacomCBS (VIAC) Unit Set to Buy WarnerMedia's Chilevision
ViacomCBS is expanding its presence in Latin America. The media-giant’s ViacomCBS Networks International (VCNI) is set to acquire AT&T (T - Free Report) owned WarnerMedia’s Chilevisión.
Through the acquisition, ViacomCBS will be able to distribute Chilevisión’s existing offerings in sports, entertainment and news to cater to increasing demand for Spanish content across platforms including its premium streaming service Paramount+ and Pluto TV.
Moreover, with Chilevisión, VCNI will not only expand its footprint in the region through programming but also through multiple on-the-ground events, experiences and an extensive consumer products catalog.
Further, Chilevisión has significant production capabilities. Its reach and a windowing strategy of its content pipeline through free, paid, and premium channels will serve as a valuable marketing vehicle for VCNI’s streaming platforms.
ViacomCBS Inc. Price and Consensus
ViacomCBS Inc. price-consensus-chart | ViacomCBS Inc. Quote
Strong Content & Streaming Portfolios Boost Prospects
The acquisition of Chilevisión is expected to expand ViacomCBS’ content offerings and boost user engagement levels, thereby attracting advertising dollars.
Moreover, sports broadcasts have become a key medium for ViacomCBS to promote their comedies, dramas and new movies. Distribution of Chilevisión’s sports content in Brazil will also aid ViacomCBS in attracting users besides promoting other content.
ViacomCBS has been increasingly focusing on sports content off late. On Mar 25, ViacomCBS division CBS Sports announced an agreement with Lega Serie A for the exclusive U.S. rights of the Serie A Championship, the Coppa Italia and the Supercoppa Italiana.
Moreover, the company has signed a new multi-platform agreement with National Football League (NFL) that extends CBS’ relationship with the league for the next 11 years through the 2033 season.
However, solid growth prospects of the streaming market, which is expected to reach $184.2 billion by 2027, per Grand View Research, have attracted prominent tech and media companies like Apple, Discovery, AT&T and Disney (DIS - Free Report) and incumbents including Netflix (NFLX - Free Report) , Amazon and Roku. This has intensified competition for ViacomCBS.
Markedly, Netflix surpassed another major milestone by reaching 206.3 million global paid subscribers in the fourth quarter of 2020. Meanwhile, Disney+ has already gained significant traction by garnering more than 100 million paying subscribers. In fact, Disney now expects to see between 230 million and 260 million subscribers on Disney+ by 2024, which basically triples its prior guidance of reaching between 60 million and 90 million subscribers by 2024.
Nonetheless, growing traction of the company’s robust portfolio of streaming services, which includes CBS All Access, Showtime OTT, Pluto TV, Noggin and BET+, serves as a key catalyst.
Additionally, priced at a premium plan of $9.99 per month, the launch of Paramount+ in the United States is the perfect opportunity for ViacomCBS to attract new users, leveraging upon the expanded content library. Paramount+ will feature a content catalog of more than 30,000 episodes, 2,500 movie titles and over 1,000 live sporting events.
Moreover, solid adoption of this Zacks Rank #3 (Hold) company-owned free streaming service, Pluto TV, is a major growth driver. The platform offers nearly 100,000 hours of premium content to users across 25 countries. Notably, Pluto TV’s wide audience base consists of 30.1 million domestic monthly active users (MAUs) and 43 million global MAUs.
ViacomCBS’s continuous efforts to build a strong portfolio of streaming services and expand its content portfolio with new offerings are expected to boost its growth prospects and aid customer acquisition in the near term.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>