Quarterly results showed a 3% increase in revenue to $6.9 billion and net income of $810 million, or $1.31 per share. But the bigger news was on the streaming front.
ViacomCBS announced a streaming service called Paramount+, which will include 30,000 TV episodes, 2,500 movies, 1,000 live sporting events, and live news. Prices will be $4.99 for an ad-supported version and $9.99 for a premium version. Importantly, this will replace CBS All Access, which never really took off as a stand-alone service.
Without streaming, ViacomCBS was in a tough position trying to compete with companies like Netflix and Walt Disney, which have lots of content and tens of millions of streaming subscribers. But this offering is compelling compared to other new streaming services and it could attract a large number of customers who are now cutting the cord from cable. It'll take time to see the financial impact, but going all-in on streaming is being seen as the right move by the market this year.