16 Apr

What Is Viacom Getting in T-Mobile Deal?

WRITTEN BY Ruchi Gupta

Another opportunity for Viacom to extend content reach

Viacom (VIAB) and T-Mobile (TMUS) this month announced a content distribution agreement where Viacom networks will be included in T-Mobile’s upcoming television service. T-Mobile is gearing up to enter the television programming market with a service that it says will deliver a better television viewing experience than what consumers have been used to from cable companies. T-Mobile’s television service is expected to launch in the coming months.

The T-Mobile deal is expected to help Viacom put its content in front tens of millions more viewers. T-Mobile had close to 80 million wireless customers at the end of 2018. Therefore, the T-Mobile deal could open another avenue for Viacom to extend the reach of its content and enlarge its revenue opportunities.

What Is Viacom Getting in T-Mobile Deal?

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Viacom’s content distribution deals

In addition to T-Mobile, Viacom also has a content distribution partnership with Snap (SNAP), whose photo-sharing app Snapchat serves 186 million people globally. Last month, Viacom renewed its content distribution agreement with AT&T (T) to keep its networks on satellite broadcaster DIRECTV.

Viacom has also secured a contract to produce shows for Netflix (NFLX), which has close to 60 million subscribers in the United States and about 140 million subscribers worldwide.

Viacom made a profit of $321 million on revenue of $3.1 billion in its first quarter, which ended in December. Viacom’s December quarter revenue was nearly flat from a year ago. CBS (CBS), Charter Communications (CHTR), and Comcast (CMCSA) recorded revenue increases of 2.6%, 6.0%, and 26% year-over-year, respectively, in the December quarter.

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