ViacomCBS (VIAC) Readies New Combo-Platter Streaming Service

If the thought of kicking back and watching some streaming video this weekend strikes you as a good idea, you're not alone. Not only are there plenty of people out there thinking like you, but there are plenty of businesses taking advantage of your inclination to come in out of the cold and spend a quiet weekend with some media properties. New reports, in fact, suggest that ViacomCBS (NASDAQ: VIAC) is readying a new plan to draw your interest its way by bringing together a range of properties under one roof.

ViacomCBS' Combo-Platter Streaming Plan

The recently-minted merger between Viacom and CBS raised eyebrows with regulators, but with the job done, it's no surprise that one of the first things the company is looking to do is augment its streaming presence. Based on the current reports from the ever-popular people close to the matter who don't wish to be identified, it's planning to do so in a pretty big way.

Essentially, the new streaming service would call for a complete repackaging of everything that's currently offered by the duo. That includes not only CBS All Access and it's stock of original material, but also the various Viacom assets. “Various Viacom assets” includes such properties as Nickelodeon, MTV, Comedy Central, PlutoTV, BET, and more. It also is set to include Paramount movies, which is said to include a possible slate of just over 3,500 titles by itself. Just to round it out, there's also the potential for another 700 or so to step in thanks to Viacom's stake in Miramax, which accounts for 49 percent of the company.

The planned service—which is still in its early stages of planning, reports note—is likely to offer an ad-free version, as well as a premium version which includes Showtime. Pricing is likewise still up in the air, but the base service is expected to come in at under $10 a month.

The Gathering of the Streams

Essentially, the two organizations are looking to merge on every front, bringing together all their properties at the same time they bring their companies together. CBS All Access has done fairly well by some reports, with word suggesting that the version of the service that combines with Showtime accounts for just over 10 million subscribers by itself.

Meanwhile, Viacom has a range of streaming products, but these have been commonly tailored toward market niches rather than taking on the full streaming market. Viacom's products like Noggin, coming in at $7.99 a month, and BET+ for $9.99 a month, both offer a range of options with some original programming thrown in.

The word is that ViacomCBS will keep these packages in place—some may just specifically want these services—while at the same time marketing the consolidated version as well. Though who will stick around for the $9.99 BET+ when a potentially slightly cheaper version is set to include so much more is as yet unclear.

Disney+ In the Crosshairs

A move like this represents a serious shot across the bow to Disney+ (NYSE: DIS), which has made great headway in recent days with its streaming service, bundled effectively with both ESPN and Hulu as well. It also represents some major potential troubles ahead. Hulu, for example, is home to several Comedy Central properties, not the least of which is “South Park”. If Hulu lost the Comedy Central lineup to ViacomCBS' planned new service, it could be a serious blow. That's just for starters, too; Hulu also contains a range of Viacom properties that could be at risk of departure should this new service launch and decide to go walled-garden. Throw in the potential losses to ESPN thanks to CBS' deals with the National Football League (NFL) and the Disney+ bundle could be fairly deeply hamstrung. Disney+ has already been spotted advancing its European release timetable on what may be some sluggish new content rollouts, so a loss of current content would be a tough act to follow.

The fallout could be felt clear down the line; Netflix, (NASDAQ: NFLX)  for example, has already been coming under fire from studios looking to bring their properties home to their own infrastructure, and Netflix would likewise be subject to significant losses if Viacom pulled the plug on Nickelodeon and Comedy Central content. While Netflix would be somewhat insulated from a pullback thanks to a multi-picture deal that was inked back in late 2018, the library content might be at very real risk.

If ViacomCBS launches a service as hard as it could launch and pulls the plug on a lot of satellite operations to fuel it with content, then this could be a blow struck throughout much of the streaming ecosystem. A slew of “ifs” and “buts” line the path here, but we could be witnessing the beginning of some scorched-earth to come.