As ViacomCBS Inc. looks to build its streaming business via subscription video on demand service Paramount+ and ad-supported video on demand entry Pluto TV, the company believes Showtime OTT will continue to play a significant role in reaching its subscriber and revenue targets.
Viacom President and CEO Bob Bakish said Showtime OTT, which will continue to operate as a standalone offering in the U.S., had a "fantastic" 2020 from financial and subscriber perspectives.
That momentum has continued into 2021 with strong performances in January and February. Bakish said the premium service's programming is resonating, particularly "Your Honor," the Bryan Cranston-led miniseries. "It turned out to be the No. 1 launch for Showtime of 2020, and it was a good sub driver."
Calling Showtime a "distinct play," Bakish said the service is edgier, more risk-taking and is "a little more coastal than Paramount+, which is a broader product. We think it makes sense at this point in time to maintain that differentiation."
On March 4, ViacomCBS launches Paramount+, a rebranded and expanded version of the CBS All Access in the U.S and Canada and several Latin American countries. The service will debut March 25 and midyear in the Nordics and Australia, respectively.
From a pricing perspective, Paramount+ will be offered in two packages. The basic tier, including commercials, will cost $4.99 per month beginning in June, a dollar less than the current CBS All Access equivalent. It will feature live sports headed by the NFL and soccer; news from digital service CBSN and on-demand CBS News segments; Paramount+ originals; Paramount films; and some of ViacomCBS' programming library, as well as current seasons of CBS (US) series.
The $9.99 per month version will run ad-free and house additional sports and entertainment programming, plus live CBS TV station signals, giving subscribers access to breaking news coverage.
The company expects to have 65 million to 75 million global streaming subscribers by the end of 2024, with the vast majority hailing from Paramount+; 100 to 120 million Pluto TV monthly active users; and more than $7 billion in combined streaming revenue. The company finished 2020 with almost 30 million SVOD subscribers, including 19.2 million CBS All Access, Showtime OTT and BET+ in the U.S., 43 million global Pluto TV MAUs, and streaming revenue of $2.56 billion.
Showtime also will play a key role internationally as its content will be integrated into Paramount+, which Bakish said will essentially be an entertainment-oriented product.
"We don't currently have a deep portfolio of sports rights outside the United States, and CBS News is more of a domestic franchise than a global franchise," he said.
Output deals with Showtime, Paramount and CBS are determinants in the timing of international markets.
"Sometimes you can start with everything. Sometimes you start with part of your overall basket that you envision and add to it over time," Bakish said. "But that's very much a contributor to our rollout schedule."
