Talks of a streaming merger are underway at Paramount Global

Regarding the combination of its streaming service, Paramount+, with an already-existing platform, Paramount Global is now in talks with other entertainment firms. If successful, this may lead to a wave of further collaborations in the media space, strengthening the sector overall.

The executives of Paramount Global are presently investigating possible arrangements for the combination of Paramount+ with another streaming company, which might result in a jointly-owned platform. Executives from internet companies and a variety of media outlets participate in these private conversations.

The merger, which Warner Bros. has expressed interest in, might help both services by giving them a stronger competitive edge over Netflix and Disney's suite of platforms (Disney+, Hulu, and ESPN) in terms of viewership and future content.

Initial merger negotiations for a full agreement with Paramount Global were undertaken earlier this year, but the talks ended in deadlock.

Chris McCarthy, the co-CEO of Paramount Global, disclosed the company's possible relationship with a technology platform during a town hall meeting for employees on June 25.

A combined streaming service may provide a wider range of content, lower user attrition, and even remove Paramount+ losses off Paramount Global's balance sheet through the introduction of new ownership.

It's unclear exactly how a possible joint venture with Warner Bros. Discovery would be structured, but given the present state of the streaming properties' finances, it's probable that ownership wouldn't be divided equally.

Max, the direct-to-consumer division of Warner Bros. Discovery, has around 100 million customers worldwide, of which 52.7 million are located in the United States. In the meantime, Paramount+ had 71 million members at the conclusion of the first quarter.

Traditional media firms have lost billions of dollars as a result of the debut of streaming services by Warner Bros. Discovery, Disney, Paramount Global, and NBCUniversal since late 2019. According to industry agreement, the number of streaming services exceeds the total number of paying consumers.

Should Paramount successfully complete a joint venture with either Max or Peacock, it may exert pressure on the other services to pursue a comparable agreement.

(Sources: investing.com, reuters.com)