CBS All Access to Boost Entertainment Segment with an International Launch



Feature of initial launch

After experiencing huge success in the domestic market, CBS’s (CBS) online video streaming service, CBS All Access, plans to launch in Canada in the middle of 2018, followed by other markets. Both CBS Interactive and CBS Studios International divisions will be responsible for the international launch. The international rates have not been disclosed.

The international expansion could not only help the company boost its Entertainment segment revenues but also downplay the competition from other OTT (over-the-top) service providers.

From the graph above, you can see the decline in revenues from the Entertainment division over the past four quarters.

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Gaining momentum

Launched in October 2014, the OTT (over-the-top) service gained huge traction, driven by faster broadband services and the higher use of smartphones, which has completely changed the TV watching experience for viewers.

In March 2015, the company aimed for 8 million combined subscribers for CBS All Access and Showtime’s OTT service by 2020. The company easily achieved the target by the middle of 2017 and plans to gain four million more subscribers by the end of the year.

CBS All Access continues to enrich its content with three new original series, Strange Angel, No Activity, and $1. Meanwhile, the launch of Star Trek: Discovery has also helped garner record weekly customer growth for CBS All Access.

CBS has also kept its rates closely on par with the other OTT service providers, including Netflix (NFLX) and Amazon Prime Video (AMZN). Also, domestic subscribers can get ads with their CBS All Access services for $5.99 each month, while those opting for ad-free are charged $9.99 every month.


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