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As we approach the second quarter results, CBS Corp. and Viacom set the same reporting date – August 8 – to what could apparently be a merger announcement, according to information obtained by CNBC. The companies have been revolving around a group for more than a year, after splitting up in 2006.
The potential merger occurs as the traditional media landscape consolidates to better compete with technology giants such as Netflix, Apple, and Amazon, who are investing more and more in content.
Small reminder: Comcast officially acquired NBCUniversal in 2013, AT & T now owns WarnerMedia and Disney now incorporates the majority of 21st Century Fox's badets. Now that the CEO of CBS, The Moonves – who had previously resisted the merger – has been ousted, the merger seems more likely.
The potential for content for the combined company is vast and this strength would allow a combined entity to better compete, as the number of cable breaks increases and wars take place in the future. climax. Both companies have focused on developing niche SVOD offerings targeting specific audience interests and with some success. But this success can only be limited as the market continues to hurry.
If companies merge, the best choice might be to reduce niche streaming offerings – which have had a generally difficult year compared to larger services – and instead launch a unified SVOD. Just as Disney does with Hulu and its recently closed FX +, for example, companies could close smaller services such as Noggin or Paramount + and bring their content to an existing platform (or any new one) offering better odds scaling.
In addition, both companies have many options for developing original content, such as Viacom's Awesomeness TV and CBS's Simon & Schuster. With their combined resources, companies could focus on creating mature programs and films for their own services or even for options. Overall, a potential merger appears to be feasible for both companies and more likely than ever.
Here is a list of key properties currently held by companies:
CBS Corp.
- Broadcast networks: CBS broadcast channel; The CW (50% interest – joint venture with Warner Bros.)
- Cable Networks: Showtime Networks Inc. (Showtime, The Movie Channel, Flix), CBS Sports Network (CBSSN); Pop, Smithsonian Channel (joint venture with the Smithsonian Institution)
- SVOD: CBS All Access (CBS broadcast), Showtime (standalone SVOD), Smithsonian Channel Plus
- Advertising-funded streaming networks: CBSN (news), CBS Sports HQ (sports-oriented)
- Publication: Simon & Schuster
- TV and Movie Studios: CBS Television Studios, CBS Studios International, CBS Films
Viacom
- Cable networks: MTV, Comedy Central, Nickelodeon, Paramount Network, TV Land, BET, CMT, VH1, Telefe (Argentina), Channel 5 (UK), etc.
- Movie, TV and Digital Studios: Paramount Pictures, Viacom Digital Studios, Paramount Television (including Awesomeness TV)
- SVOD: Paramount +, BET + (to come up), Noggin (joint venture with Sesame Workshop)
- AVOD: Pluto TV (ready for international expansion)
- Live Events: VidCon (Digital Video Conferencing), etc.
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