Streaming is expected to grow at a CAGR of nearly 20% between now and the year 2029, and Paramount Global Inc (NASDAQ: PARA) is well-positioned to benefit from that growth, as per the CEO.
Paramount caters to a wide audience
On a CNBC interview this morning, Bob Bakish said the Nasdaq-listed firm was unique in a sense that it caters to an incredibly wide audience.
Free services on Pluto TV, low-priced subscription with ads, and Paramount Plus (premium service) gives us the maximum access to the streaming market.
Content on Paramount Plus is fairly diverse
In terms of content also, there’s news and sports on top of entertainment. So, there’s something for everyone on Paramount Plus that had nearly 40 million paid subscribers as of May 2022. The CEO added:
Since we launched Paramount Plus, we’ve had the highest share of signups, gross and net ads in the industry, and in fact, that’s true for six of the last seven months.
Paramount Global enjoys lower content costs
Shares of the mass media and entertainment conglomerate are up roughly 5.0% on Tuesday. Bakish is also positive on the company’s future as it offers the best of both words; streaming and linear television.
That gives us access to content and reduces our content costs for streaming because we’re sharing content.
His confidence is also driven from the fact that Paramount Global continues to lower its churn every month. In May, Warren Buffet took an equity stake worth $2.60 billion in “Para”.
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