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ViacomCBS (VIAC) Launches Paramount+, Showtime Bundle Plan

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ViacomCBS (VIAC - Free Report) has launched a bundle of its flagship streaming products, discounting the monthly price by 38%.

New sign-ups can opt for an Essentials plan featuring the ad-supported Paramount+ and Showtime for $9.99 a month. The ad-supported Essential Plan offers sports content, including NFL games and over 2,000 soccer matches each year, with on-demand entertainment options spanning the full suite of current and upcoming shows and movies, as well as breaking news through CBSN.

Prospective subscribers can also choose a Premium plan that bundles the ad-free Paramount Plus Premium with Showtime for $12.99. This plan features commercial-free, on-demand entertainment with 4K, HDR, and Dolby Vision, and mobile downloads, an extended roster of must-watch sports, and live streams of local affiliates in over 200 markets across the United States.

Purchased separately, Showtime costs $10.99/month while ad-supported Paramount+ and ad-free Paramount+ are priced at $4.99/month and $9.99/month, respectively.

ViacomCBS Inc. Price and Consensus

ViacomCBS’s Bundle Offering Holds Promise

The bundle could thus motivate Showtime subscribers to check out the newer Paramount+, which includes shows like RuPaul’s Drag Race, which broke records at the Emmy’s this week with most wins by a black artist, Star Trek: The Original Series, and The Good Fight.

The company previously offered a bundle of CBS All Access and Showtime through Apple, at a $9.99 price point. It ended that offer earlier this year ahead of the launch of Paramount+.

ViacomCBS is aligning resources to spur the growth of its paid streaming service, which lags rivals including Netflix, Disney+, and HBO Max. A discount of 38%, while steep, ultimately serves to drive subscriber growth, with the goal of retaining subscribers.

In August, ViacomCBS logged over 42.4 million subscribers across its streaming services, which include Paramount+, Showtime, and BET+.

Disney’s (DIS - Free Report) Disney+ is benefiting from the bundle offering that comprises Disney+, Hulu, and ESPN+ starting at $13.99. The service has quickly gained more than 116 million paid subscribers, which is encouraging for ViacomCBS.

Spotify (SPOT - Free Report) has partnered with both Disney and ViacomCBS to launch a bundle of Hulu, Showtime, and Spotify at a steep discount for college students.

ViacomCBS is expanding internationally in Australia and New Zealand and plans to enter key European markets, including the UK, Ireland, Italy, Germany, Switzerland, and Austria in 2022 as part of the new Sky partnership with Comcast (CMCSA - Free Report) .

The company has long maintained that its mix of live sports and news along with premium, on-demand fare makes Paramount+ unique. Recently, this Zacks Rank #3 (Hold) company has inked several content deals for the service, including a $900 million deal with South Park creators Matt Stone and Trey Parker. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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