ViacomCBS had missed Wall Street profit forecasts on Tuesday when the company revealed it was changing the name of its company to Paramount and announced a wide selection of new programming in its battle to attract viewers in the highly competitive streaming market.
The shares that belong to the company, including CBS, Showtime, Comedy Central, MTV, and other channels that initially fell 3 ways, fell to a loss of 6 methods after the two-hour demonstration on its strategy for streaming continued even after the market closed.
ViacomCBS announced an adjusted earnings-per-share of 26 cents (roughly 20 rupees) in October and December, which was below analyst estimates of 43 cents (roughly about Rs. 30).
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The change into Paramount, which took effect this Wednesday, made public an announcement to generate enthusiasm among investors over its plans and programming.
“We are aware that the opportunity to take advantage of is huge, and we’ve got the drive, the determination, and the drive to achieve it,” Chief Executive Bob Bakish stated.
The company predicts that it will be able to attract 100 million users to the streaming service by 2024, a rise from the previous estimates of 65-75 million customers.
According to the company, to achieve this, the company’s investment in new streaming programs will reach over $6 billion (roughly around Rs. 45,030 crores) each year by 2024.
Executives have announced a wide range of programs to attract new customers online who can choose from Netflix, Walt Disney, and more.
One of them is that ViacomCBS has ordered an additional season of the Video Game TV, a game-based adaptation of Halo, a Yellowstone spinoff titled 1932, and the two animation South Park movies each year from 2027.
Beginning 2025 in 2025, the entire series of South Park episodes will be exclusive to viewers worldwide via the streaming service Paramount+ executive executives stated.
To appeal to younger viewers, the company plans to release the Baby Shark movie and a new Dora the Explorer series.
Tom Cruise, star of Paramount’s Top Gun and Mission: Impossible franchises, made an appearance on video and said that the actor was “pleased, delighted” of the 37 years he’s had a partnership with Paramount’s movie studio in the roles of actor and director.
Top Gun: Maverick is scheduled to be released in movie theaters in May.
In 2024 Paramount+ will become the sole home for all Paramount’s film productions that play in cinemas.
Paramount is a new name. Paramount name “will assist in advancing our strategy of leveraging all our strengths and capabilities to build the companies of tomorrow,” Bakish and Chair Shari Redstone stated in a letter to employees.
On Tuesday, the company announced that it added 9.4 million subscribers to its global streaming service during the fourth quarter of 2018, which brought its total number to 56 million.
The company also gained from the return to live sports and a boost in affiliate revenue for its cable networks. Affiliate revenue is the amount of money collected from satellite and cable operators and online distributors.
Revenue increased 16 times in the range of $8 billion (roughly approximately. 60,020 crores) during the period that ended on December 31, in contrast to estimates from analysts for $7.51 billion (roughly approximately Rs. 56,340 crores) in the three months ended December 31, according to IBES figures from Refinitiv.
Operating income increased by $2.66 billion (roughly 19955 crore) from $1.08 billion (roughly. 19,955 crore) from $1.08 billion (roughly around Rs. 8,100 crore) an entire year prior.
