Viacom CEO Bob Bakish will soon preside over a major media powerhouse.
ViacomCBS’ streaming strategy will run the gamut from free and paid services fed by library and original content, in-house production, and third-party deals, as Bob Bakish, the Viacom CEO who will run the new entity once the merger closes, said he aims at “differentiation and capital efficiency.”
We’re “in the middle of developing our combined company streaming strategy,” he told analysts on an earnings conference call. The deal is expected to close in December.
Investors were a bit alarmed earlier this week by CBS’ large investment in CBS All Access, one analyst noted on the call, asking about Bakish’ strategy. The CEO said Viacom tries to reduce overall financial exposure with an array of deals — the latest being a licensing pact announced Thursday between Paramount and Netflix giving the giant streaming service rights to make a sequel to Beverly Hills Cop with Eddie Murphy starring and Jerry Bruckheimer producing. The pact, Bakish said, ”will produce a new film based on an iconic IP and further expands our relationship with this important original production client."
Earlier this week, Nickelodeon and Netflix announced an output deal for films and TV series. Viacom is also backing a comedy series by Comedy Central star Trevor Noah for Quibi, the mobile streaming service from Jeffrey Katzenberg launching in April.
Bakish noted that Nick’s Noggin subscription service relies on library content. Recently launched BET+ is developing original fare with Tyler Perry Studios.
Pluto’s model, he said, is revenue sharing based on content partnerships.
Pluto TV, the free streaming service that Viacom acquired early last year saw monthly U.S. active users rise 70% to 20 million for the calendar year and launched 43 new channels, 24 Viacom-branded.
Viacom nailed two milestones, posting its first full-year bump in advertising revenue in six years boosted by Pluto TV, which Bakish said had 3,500 brand advertisers in the fourth quarter. And Paramount posted its first annual profit since 2015. Paramount’s slate will jump to 17 films in fiscal 2020 from 11 in 2019 including A Quiet Place Part II, The Spongebob Movie: Sponge on the Run, and Top Gun: Maverick.
The stock is up 3.5% in mid-morning trade.
Outgoing CFO Wade Davis said the merged ViacomCBS will join an elite handful of players “positioned to shape the future of the media industry — and “the center of it all will be content.”
