PARAMOUNT GLOBAL AND CHARTER COMMUNICATIONS ANNOUNCE NEW MULTI-YEAR AGREEMENT FOR DISTRIBUTION OF PARAMOUNT'S LINEAR NETWORKS, CBS OWNED-AND-OPERATED STATIONS AND DIRECT-TO-CONSUMER STREAMING SERVICES
Paramount Global and Charter Communications announced a new multi-year distribution agreement to extend their partnership.
This deal will allow Paramount's linear cable networks, CBS stations, and streaming services to continue being available on Charter's Spectrum packages. Popular channels like BET, Comedy Central, MTV, and Nickelodeon will remain accessible, along with Paramount+ with Showtime.
The ad-supported versions of Paramount+ Essential and BET+ Essential will be added at no extra cost to Spectrum subscribers. Internet-only customers can purchase Paramount's streaming services through Charter.
Charter will benefit from revenue shares on new subscriptions and ad-free upgrades. Financial terms of the deal were not disclosed.
- New multi-year distribution agreement ensuring continued access to Paramount's portfolio.
- Inclusion of Paramount+ Essential and BET+ Essential at no additional cost for Spectrum TV customers.
- Opportunity for Charter's Internet-only customers to purchase Paramount's streaming services.
- Revenue-sharing model for Charter on new subscriptions and ad-free upgrades.
- Broadening of content offerings, including popular networks and Paramount+ with Showtime, enhancing Spectrum's value proposition.
- Financial terms of the agreement were not disclosed, leaving uncertainties for investors.
- Potential cost implications for Charter in integrating and offering new services without additional charges to customers.
Insights
The new multi-year distribution agreement between Paramount Global and Charter Communications underscores a significant step in the evolving video distribution landscape. For Paramount, this deal ensures consistent revenue streams from Charter's substantial subscriber base, integrating Paramount's linear networks and streaming services into Spectrum TV packages. This could boost Paramount’s subscription numbers and ad revenue significantly, especially with the ad-supported models like Paramount+ Essential and BET+ Essential.
For Charter, including Paramount’s broad portfolio in its TV packages at no extra cost to consumers could increase customer retention and satisfaction. Moreover, offering Paramount’s direct-to-consumer products to internet-only customers opens up new revenue avenues, especially through retail rate purchases and ad-free upgrades, which Charter will share in revenue.
One key point to note is that despite the financial terms not being disclosed, the benefits in terms of expanded customer base and enhanced service offerings are likely to contribute positively to both Paramount’s and Charter’s financial health in both the short and long term. Investors should monitor how this deal impacts subscriber growth and revenue in upcoming earnings reports.
This agreement strategically positions both companies in a rapidly shifting media consumption environment. By incorporating Paramount’s ad-supported streaming services into Spectrum TV packages, both companies are responding to the growing consumer demand for flexible and affordable streaming options. This inclusion could serve as a key differentiator for Charter, making its video packages more attractive compared to other cable providers.
The move also helps Paramount tap into a broader audience base without the barrier of additional subscription costs, thereby potentially increasing ad revenues. With the integration of popular services like Paramount+ with Showtime and regional sports networks, the deal enhances the overall value proposition for Spectrum customers, potentially leading to increased market share for Charter.
It will be important to monitor customer uptake and satisfaction rates as these services roll out. The possible upgrade path to ad-free versions could drive further revenue growth, reinforcing the dual benefit of subscriber growth and revenue diversification for Paramount.
Ad-Supported Paramount+ Essential and BET+ Essential will be Included in Spectrum Video Packages at No Additional Cost to Customers
Charter to Make Paramount's Direct-to-Consumer Products Available for Purchase by its Internet-Only Customers
In addition to CBS, America's most-watched network, Spectrum audiences will continue to enjoy access to some of TV's most popular cable brands, including BET, Comedy Central, MTV, Nickelodeon, and Paramount Network – home to "Yellowstone," the biggest series in all of television – as well as premium service Paramount+ with Showtime. As part of the deal, the ad-supported versions of Paramount's direct-to-consumer services, Paramount+ Essential and BET+ Essential, will be included at no additional cost to Charter's Spectrum TV customers. Charter also will make Paramount's direct-to-consumer products available for purchase to its millions of Internet-only customers.
"From the outset, Paramount has embraced Charter's goal of evolving the video distribution model, and we have appreciated their willingness to collaborate on a solution that benefits our mutual customers and the video industry as a whole," said Tom Montemagno, Executive Vice President, Programming Acquisition for Charter, which operates the Spectrum brand of video and connectivity services. "Continuing to build on our new distribution framework with the addition of Paramount+ Essential and BET+ Essential, joining the Paramount+ with Showtime service for Paramount+ with Showtime linear customers and others like Disney+, ESPN+, ViX, Max for HBO customers, Tennis Channel Plus, and numerous regional sports networks' direct-to-consumer apps for customers of our regional sports networks, Spectrum continues to transform the cable bundle to become the best destination and value for video customers and we expect to continue to add more enhancements like this in the near future."
"We are very pleased to renew and expand our long-standing partnership with Charter to provide continued access to Paramount's leading portfolio of broadcast, entertainment, news and sports brands," said Ray Hopkins, President of
Among the key deal points:
- Charter will continue to carry Paramount's CBS owned-and-operated broadcast stations, along with all of Paramount's current cable networks and Paramount+ with Showtime, in relevant tiers across all Spectrum TV Select packages, Mi Plan Latino, TV Choice and TV Stream.
- Later this year, Paramount+ Essential and BET+ Essential will be made available at no additional cost to all Spectrum TV Select packages and Mi Plan Latino customers through the Xumo Stream Box or any other Paramount+ supported device, and the Paramount+ with Showtime plan will continue to be received at no cost by all of Spectrum's Paramount+ with Showtime linear customers as well.
- Spectrum customers that have Paramount+ Essential included will be offered the opportunity to upgrade to the ad-free version of Paramount+ with Showtime later this year.
Charter and Paramount will continue to innovate through long-standing advanced advertising partnerships, leveraging the local and advanced capabilities of Spectrum Reach, Charter's advertising sales business, which will be enhanced through this new agreement. Additionally, Charter will leverage its vast distribution capabilities – including its nearly 25,000 onshore, in-house sales and marketing employees – to offer Paramount's direct-to-consumer products to its Internet-only customers for purchase at retail rates, with revenue share to Charter for new paid subscriptions and ad-free upgrades.
Financial terms of the agreement were not disclosed.
About Paramount
Paramount Global (NASDAQ: PARA, PARAA) is a leading global media, streaming and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, Paramount's portfolio includes CBS, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV. Paramount holds one of the industry's most extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, the company provides powerful capabilities in production, distribution, and advertising solutions.
For more information about Paramount, please visit www.paramount.com and follow @ParamountCo on social platforms.
PARA-IR
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/paramount-global-and-charter-communications-announce-new-multi-year-agreement-for-distribution-of-paramounts-linear-networks-cbs-owned-and-operated-stations-and-direct-to-consumer-streaming-services-302154743.html
SOURCE Paramount Global
FAQ
What does the new agreement between Paramount Global and Charter Communications involve?
When was the new distribution agreement between Paramount Global and Charter Communications announced?
What benefits do Spectrum TV customers get from the new Paramount and Charter agreement?
Will Charter's Internet-only customers benefit from the new agreement with Paramount?
How does the new agreement affect Spectrum's video packages?
What is the revenue model for Charter in the new Paramount agreement?
