The Future. Apple and Paramount are discussing bundling their respective streaming services at a discounted price. If the team-up reduces subscriber cancellations, boosts revenue (important to Paramount), and increases content visibility (important to Apple), it’ll be a win for everyone. More intriguingly, with Paramount reportedly on the sales block, the close collaboration between the companies could put Apple in the pole position to acquire the storied studio.
Turn the churn
After partnering on Martin Scorsese’s Killers of the Flower Moon, Apple and Paramount are in talks to work a little more closely together — bundling their streamers.
- That’s because both have had higher-than-typical customer cancellations — in October, each had a 7% churn rate, while 5.7% is the industry average.
- And with prices going up across the board (Apple recently doubled its price, while Paramount raised its own when it combined with Showtime), the companies hope a bundled package will help reverse those stats.
This sort of consolidation has been inevitable for the past year, as every Hollywood studio rushed to build its own streamer but was met with poor economics, rising costs, and a Wall Street that prioritized profits. Companies can only lose so much money chasing Netflix before they have to rethink their strategy.
In the case of Paramount and Apple, the former has steadily grown but is still at the bottom of the streaming pecking order, while Apple has a plethora of great titles but has gotten lost in the shuffle. By joining forces, the hope is both get a boost.
Heck, the news already boosted Paramount Global’s stock.