HomeMarket NewsApple's Plot to Dominate: Bundling Streaming Brilliance with Paramount+

Apple’s Plot to Dominate: Bundling Streaming Brilliance with Paramount+

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Netflix application icon among Apple TV+, Amazon Prime Video, and HBO GO in Entertainment Folder on Apple iPhone 12 Pro MAX screen close-up. Popular streaming services.


Apple (NASDAQ:AAPL) is scheming to bundle its streaming treasure, Apple TV+, with the Paramount’s (NASDAQ:PARA) (NASDAQ:PARAA) own offering to give an affordable kick to both services.

The gossip mill has it that discussions between the tech giant and the media mogul are still in the preliminary stages. It’s shrouded in mystery what form this alliance could take, as per The Wall Street Journal.

The Wall Street Journal added that Apple TV+ and Paramount+ are experiencing higher-than-average customer churn rates, exceeding 7%, as per data from research firm Antenna.

Both Apple (AAPL) and Paramount (PARA) (PARAA) chose to keep silent in response to a request for comment from Seeking Alpha.

Paramount (PARA) (PARAA) has a history of mingling for its streaming service. In 2022, it joined forces with Walmart (WMT) to include Paramount+ in Walmart+, a direct competitor to Amazon (AMZN) Prime, which boasts its own exclusive streaming service.

Apple (AAPL) is tight-lipped about the number of subscribers for Apple TV+, hosting popular shows and movies like For All Mankind, CODA, Monarch: Legacy of Monsters, and more.

On the other hand, Paramount (PARA) (PARAA) recently unveiled that its Paramount+ service, featuring shows and movies such as the Frasier reboot, Top Gun: Maverick and Tulsa King, now boasts over 63M subscribers, post its merger with the Showtime streaming service earlier this year.

More so, one cannot ignore the costs and profits. Apple (AAPL) has recently upped the monthly price of Apple TV+ to $9.99, while Paramount+ ranges between $5.99 and $11.99 per month, depending on the plan. (Apple TV+ is also part Apple’s own subscription bundle, Apple One).

Paramount (PARA) (PARAA) revealed that its direct-to-consumer losses have shrunk by over 30% in the last quarter, partly due to recent price hikes and lucrative pay-per-view events, with the segment’s operational loss pegged at $238M.

As for Apple (AAPL), it keeps the profitability of Apple TV+ under wraps, although it is included in its Services segment, contributing to $22.3B in revenue last quarter, along with the App Store, advertising, and other subscriptions such as Apple Music.

Verizon (VZ) made headlines last month for bundling the ad-supported version of Warner Bros. Discovery’s (WBD) Max streaming service with Netflix (NFLX) for a combined cost of about $10 per month.

Disney (DIS) has also caught the bundling bug, offering its three streaming services, Disney+, Hulu, or ESPN+, as a package deal, although they can be purchased separately.

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