Why Paramount Global Stock Soared 9% Higher on Friday
A potential collaboration with a major tech company sent Paramount Global's (NASDAQ: PARA) stock skyward on the last trading day of the week. The storied entertainment company's share price improved by 9% during the session, easily trouncing the 0.6% gain of the S&P 500 index on the day.
Paramount+ and Apple TV+ bundling talks
Friday morning, The Wall Street Journal reported that Paramount and Apple (NASDAQ: AAPL) are in talks about bundling their video streaming services together. Citing unnamed "people familiar with the discussions," the newspaper said that a bundle of Paramount+ and Apple TV+ might end up being priced lower than the current charges for both services individually.
If accurate, the reported talks between Paramount and Apple would be the latest indication that streamers are continuing to make their services viable financially. Low prices, high costs, and customer defections have made the business extremely challenging. Offering value to consumers is one way to keep subscriber numbers up and cash rolling into the coffers.
Neither Paramount nor Apple has yet officially commented on the Journal article.
Two are better than one
Marrying Paramount+ and Apple TV+ is a sensible move because the two services are more or less complementary. Apple is clearly aiming to be a prestige TV outlet; it's also pushing into the sports realm with the recently launched Friday Night Baseball series. Paramount, meanwhile, has a massive library compared to the tech upstart, with many popular series and films in its catalogue. Much will depend, however, on pricing.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
