What happened
Shares of ViacomCBS (PARA -0.47%) jumped 33% in February, according to data provided by S&P Global Market Intelligence, after the company announced earnings and a new streaming service.
So what
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.
Image source: Getty Images.
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.
Now what
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.
