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ViacomCBS (VIAC) Paramount+ Attains New High With 1M Sign-Ups

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ViacomCBS streaming platform Paramount+ experienced its most successful week to date. The streaming service added more than one million new subscribers, setting a record of its total signups since its rebranding.

Paramount+ witnessed new highs for the most streamed hours and the highest level of subscriber engagement in a week. The success came with several new launches on the platform.

Clifford the Big Red Dog hit the theatres on Nov 10 and premiered on the platform on the same day. It has already set a new record as Paramount+’s most-watched original film. Mayor of Kingstown, an original scripted drama, the popular news program 60 Minutes, the CBS event Adele One Night Only and the live streaming of NFL on CBS contributed to the high streaming hours.

The return of the Paramount+ originals, such as the fifth season of Seal Team, the 10th season of The Game and the second season of The Challenge: All-Stars, also fueled the success of Paramount+.
 

ViacomCBS Inc. Price and Consensus

 

ViacomCBS Inc. Price and Consensus

ViacomCBS Inc. price-consensus-chart | ViacomCBS Inc. Quote

 

Several upcoming exclusives and originals for the service are scheduled for release in the forthcoming months. These include the fourth season of Star Trek: Discovery, which premiered on Nov 18, the exclusive Post Covid event on Nov 25, 1883 and the Yellowstone prequel to be premiered on Dec 19.

Robust Content Strategy to Steer Away Competition

Paramount+ is facing tough competition in the streaming market, currently dominated by the likes of Netflix (NFLX - Free Report) , Disney+ from The Walt Disney (DIS - Free Report) and Peacock from Comcast (CMCSA - Free Report) division NBCUniversal.

ViacomCBS shares have underperformed both Netflix and Comcast on a year-to-date basis. Shares have declined 5.9% year to date against Netflix’s rise of 27.9% and Comcast’s return of 2.5%. However, Disney’s shares have declined 13.2% year to date.

Disney+’s popularity is expected to benefit Disney’s prospects in the near term. As of Oct 2, 2021, Disney+ had 118.1 million paid subscribers, up 60% from the year-ago quarter’s levels. Disney+ net additions are expected to be higher in the second half of fiscal 2022 compared with the first half.

Peacock has gained significant traction quickly and is a key catalyst in driving Comcast’s broadband sales. At the end of a year of its launch, Peacock had 42 million signups. Engagement has been solid as users are consuming nearly 20% more programming hours each month than Comcast’s traditional audience on NBC.

However, Netflix is still dominating the streaming market. In the third quarter, Netflix added 4.38 million paid subscribers globally compared with 2.2 million in the year-ago quarter and beat its guidance of 3.5 million paid-subscriber addition. Netflix expects to end the fourth quarter with 222.06 million paid subscribers globally, indicating growth of 9% from the year-ago quarter’s levels.

Undoubtedly, Paramount+ faces a tough challenge in the streaming space for market share. However, a robust content portfolio and a strong pipeline of new releases are expected to boost Paramount+’s competitive prowess. ViacomCBS added 4.3 million subscribers in the third quarter, raising the number of global streaming subscribers to around 47 million.

ViacomCBS currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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