CBS and Viacom have collaborated and the good news has amazed the viewers since they would now have a wider range of video streaming options. ViacomCBS has decided to compete against the leading video streaming platforms like Amazon, Hulu, Netflix and the latest competitors in the field like Disney, WarnerMedia, NBCUniversal and Apple. However, it would be challenging enough for the duo to compete with the top brands as a new company and also be unique enough for viewers to choose them.
New CEO of ViacomCBS, Bob Bakish said that the first motto would be expansion. Presenting a broader range of video channels before viewers would naturally interest them more. Besides advertising, streaming services have already made themselves unique by keeping aside conventional set fee. Now, customers can choose from a variety of monetary options or credit card choices. Bakish said that maintaining a healthy business-to-consumer relationship would give customers various options to get access to premium content and growth would naturally be heightened.
CBS and Viacom would have to merge their cultural differences in order for the much needed growth. Tuna Amobi who is a senior analyst at CFRA said that Viacom use ad-supported video whereas CBS relies on subscription. The approaches of both the companies are different. The real challenge would be to bring together all the differences and provide something that can be appealing for the entire board.
ViacomCBS would have to be fast enough. The conventional infrastructure for business is fading away and advertisers are keen towards digital substitutes. Pay-TV companies have lost 5 million subscribers in last 5 years. In fact, 1.3 million out of the total number had been lost in 2019 itself. CBS is already targeting at 25 million paid subscribers by 2020. Without ads, the access to all contents would be priced at $9.99 each month and $5.99 with ads.