The parent company behind Paramount + has announced that it is looking to raise $ 3 billion to help fund operations, including its new streaming service, which some consumers evidently have no idea exists.
ViacomCBS said Monday that it will offer $ 2 billion in Class B common shares and $ 1 billion in Series A mandatory convertible preferred shares. JP Morgan and Morgan Stanley will act as joint accounting managers. In a statement, the company said it “intends to use the combined net proceeds of the Offers for general corporate purposes, including investments in transmission.”
Paramount + thrown out earlier this month as the revised version of the company’s previous streaming service CBS All Access and includes hubs for content from BET, CBS, Comedy Central, MTV, Nickelodeon and the Smithsonian Channel. At launch, the service offered two levels of streaming: a $ 6-per-month plan with limited commercials, and a $ 10-per-month option that removes ads from on-demand content (though they will still be present on live programming). In June, the service will phase out the $ 6 plan and introduce a new ad tier of $ 5 per month.
Like many of its streaming peers, Paramount + will offer exclusive programming available only on its service. And financing that programming, of course, will require money. At launch, the service had only a handful of new titles available immediately, including 60 minutes +, For the love of God, Kamp Koral: SpongeBob under the years, Homecoming in the real world: New York, Y SpongeBob Movie: Sponge on the Run.
However, it will be home to two of this year’s biggest movie premieres:A quiet place, part II Y Mission: Impossible 7—45 days after they leave theaters. And ViacomCBS is targeting 65 million to 75 million subscriptions by 2024, which means you’ll have to invest in compelling content for Paramount + if you want to reach that milestone on time.
That will be especially difficult if the findings of a recent study are an indication of the appetite for this service in a sea of other streaming offerings that launched before Paramount + entered the scene. An online survey of 500 American adults published by the site Lace cutting found that 46% of respondents knew about Paramount +, which, ouch!
It is true that it is a small enough group to be a significant indicator of whether the majority of consumers are completely unaware that the service exists. But it’s not a great sign either.