Here's what those discussions entail:
- Motivation: Both Peacock and Paramount+ have been operating at a loss, and a merger or partnership could offer a way to reduce costs (programming, marketing, etc.) and better compete with dominant streamers like Netflix and Disney+.
- Potential Benefits:
- Cost Savings: Consolidating back-end infrastructure, content licensing, and marketing could lead to significant cost reductions.
- Increased Content Offering: Combining their libraries could offer a more appealing content selection to subscribers, including a broader array of live sports given Peacock's NBC Sports and Paramount+'s CBS Sports portfolios.
- Improved Competitiveness: A larger, combined service could have a better chance of attracting and retaining subscribers in the highly competitive streaming landscape.
- Potential Format:The discussions reportedly involved exploring various options, including:
- A bundle deal: Offering both services together at a discounted price.
- A new, combined service: Launching a completely new streaming service under a different name, with profits split between the parent companies.
- Challenges & Considerations:
- Regulatory hurdles: The possibility of antitrust concerns is a potential obstacle, as both companies own major broadcast networks (NBC and CBS respectively).
- Content integration: Figuring out how to combine the existing content libraries, including existing exclusivity deals and programming strategies, would be complex.
- Brand identity: Deciding on a new brand and marketing strategy for a combined service would be crucial.
- Similar Examples: The merger of Discovery+ and HBO Max into Max serves as a recent example of streaming service consolidation. In Europe, a streaming service called SkyShowtime already exists as a joint venture between Comcast and Paramount, bundling content from Peacock, Paramount+, Showtime, and Nickelodeon.
