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How Disney's Video Streaming Services Could Affect Media Sector

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Part 6
How Disney's Video Streaming Services Could Affect Media Sector PART 6 OF 13

CBS Also Offering Direct-to-Consumer Sports Streaming Services

CBS also joins Disney in offering a sports over-the-top service

In the prior parts of this series, we have been discussing Walt Disney Company’s (DIS) upcoming ESPN direct-to-consumer service. As content viewing online becomes increasingly popular, CBS (CBS) is also concentrating on its over-the-top services like CBS All Access and CBS Showtime. CBS stated on the company’s fiscal 2Q17 earnings call that its streaming services like CBS All Access and Showtime are together set to exceed 4 million subscribers by the end of this year. The company stated that this is in line with the company’s target of these streaming services reaching 8 million subscribers by 2020.

CBS Also Offering Direct-to-Consumer Sports Streaming Services

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It’s quite possible that CBS’s streaming services could very well exceed 8 million subscribers by 2020.

With the aim of further expanding the reach of CBS All Access, the company also announced during its fiscal 2Q17 earnings call that it is all set to launch CBS All Access internationally early next year. The company said that its CBS news streaming service, CBSN, is also proving to be very popular among viewers with streaming growing year-over-year to 38% in fiscal 2Q17.

The success of CBSN has prompted the company to launch a sports streaming service. This service will be launched later this year. CBS All Access video streaming service is priced at $6 per month, close to Netflix’s pricing at $10 per month.

Rationale behind CBS’s Sports streaming service

The company indicated streaming services like CBS All Access, Showtime, CBSN, and CBS’s sports streaming service are helping the company build valuable over-the-top assets. CBS also stated that its streaming services were valuable content assets to have given the new skinny bundles that cater to specific audience tastes. The company added that smaller skinny bundles pay CBS higher carriage fees per subscriber than bigger traditional skinny bundles.

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