ViacomCBS to Expand CBS All Access

Announcing its first post-merger financial results, ViacomCBS revealed plans to expand the CBS All Access SVOD service with a broader offering as it moves to “accelerate our momentum in streaming.”

The company swung to a loss of $258 million in Q4 2019 on revenues that fell by 3 percent to $6.9 billion. Advertising revenues in the quarter were down 2 percent to $3 billion, largely as a result of a 10 percent reduction in its international operations. Affiliate revenues, however, were up slightly to $2.1 billion, with domestic operations up 2 percent and international down by 8 percent. Content licensing revenues were down 11 percent to $1.3 billion due to the timing and mix of deliveries. Theatrical revenues were down 13 percent to $129 million.

“In less than three months since completing our merger, we have made significant progress integrating and transforming ViacomCBS,” said Bob Bakish, president and CEO. “We see incredible opportunity to realize the full power of our position as one of the largest content producers and providers in the world. This is an exciting and valuable place to be at a time when demand for content has never been higher, and we will use our strength across genres, formats, demos and geographies to serve the largest addressable audience, on our own platforms and others.

“In 2020, our priorities are maximizing the power of our content, unlocking more value from our biggest revenue lines and accelerating our momentum in streaming. With this as a backdrop, we’ve set clear targets for the year and are providing increased transparency around our business to demonstrate ViacomCBS’ ability to create shareholder value today, as we continue evolving and growing our business for tomorrow.”

The company revealed the overall thinking behind its upcoming new streaming platform, which will complement the AVOD Pluto TV and the premium pay Showtime app and be built on the foundation of CBS All Access. “Offerings in free, broad pay and premium pay provides opportunity to serve the largest potential consumer market while providing benefits in subscriber acquisition, churn and lifetime value,” the company said. The expanded CBS All Access would be built on a “house of brands” strategy, delivering content from Nickelodeon, BET, MTV, Comedy Central, Smithsonian and Paramount.

The company’s TV entertainment segment, including CBS Television, CBS Television Studios and CBS All Access, delivered revenues of $3.1 billion, down 1 percent, including $1.7 billion in ad revenues (down 5 percent), $682 million in affiliate revenues (up 27 percent) and $715 million in content licensing revenues (down 9 percent). At the cable networks, revenues were down 2 percent to $3.1 billion, with ad revenues up 3 percent to $1.4 billion, affiliate revenues down 8 percent to $1.5 billion and stable content licensing revenues of $250 million. Filmed entertainment was down 14 percent to $532 million, with theatrical and home entertainment each down 13 percent to $129 million and $155 million, respectively, and licensing revenues down 18 percent to $219 million.