Paramount Global and Apple are in talks to bundle their respective streaming platforms at a discount, according to a report from the Wall Street Journal. This news sent shares of Paramount Global soaring nearly 10% on Friday, leading entertainment stocks higher.
Industry executives and Wall Street analysts believe that the market may have too many standalone streaming services, making bundling a more attractive option for reducing costs to consumers and lowering churn for providers. This emerging consensus has led to speculation of potential partnerships and bundles between various media companies.
Verizon has already begun bundling HBO Max and Netflix, and CEOs from companies like Warner Bros. Discovery and Paramount have voiced support for third-party bundles. Paramount has also formed partnerships with other companies such as Walmart+, Delta, Sky, Canal+, JCOM, and CJ Media to drive streaming growth. The company sees these partnerships as a significant contributor to their momentum.
Paramount’s shares jumped nearly 10% in response to the news of the potential bundling with Apple, closing at $15.78. Apple representatives were not immediately available for comment, and Paramount declined to comment on the report.
Media analyst Barton Crockett of Rosenblatt Securities sees Apple’s leverage in the potential negotiations with Paramount and believes that streaming will eventually migrate towards big tech platforms. He sees these partnerships as a potential step in that direction.
While the talks between Paramount and Apple are in early stages, the potential for bundling suggests a new phase of expansion in the streaming industry. This news may signal a shift towards more partnerships and bundles between media companies and tech giants in the streaming space.