Content Is Still King: ViacomCBS Touts Paramount Plus' Sports, News and Entertainment

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Content Is Still King: ViacomCBS Touts Paramount Plus' Sports, News and Entertainment

ViacomCBS unveiled plans for its new Paramount Plus streaming service Wednesday, revealing a competitive price point and sharing hours' worth of details about the company's strategy to transition into the streaming era while maintaining a foothold in traditional TV and movies. The company also said it will honor a shortened time period for movies to show exclusively in theaters before they appear on Paramount Plus.

The new streamer's debut got off to an inauspicious start when a virtual presentation to investors was unexpectedly delayed by a half hour, yielding some ridicule from the Twittersphere.

"The inability to stream an event focused on your streaming pivot...is uh...woof," tweeted media analyst Matthew Ball, summarizing the general sentiment among bemused investors and reporters.


Paramount Plus

Once the dust settled and the constant refresh clicks could cease, a string of company executives and entertainers took to the screen via Paramount Studios in Hollywood to provide new details on Paramount Plus, which launches on March 5. The service will cost $4.99 per month with ads and $9.99 without. The higher tier will also include more content, including more live sports.

The subscription platform is a rebrand and expansion of CBS All Access, which came out in 2014. ViacomCBS president and chief executive officer Bob Bakish first laid out the business case by highlighting the service's sports and news offerings.

"Few other streaming services will offer live sports at this scale," he said, noting that the company will showcase over 1,000 events and matches per year, including NFL games, March Madness, The Masters golf tournament and the UEFA Champions League.

The service will also offer 24-hour live news coverage, including a "60 Minutes Plus" program and content from over 200 local affiliate stations.

Bakish then touted the service's vast TV offering, which he said will carry over 30,000 episodes from ViacomCBS' stable of brands including MTV, Nickelodeon, BET and Comedy Central.

"If you like reality TV, Paramount Plus is the place for you," said Bakish, invoking MTV's origination of the genre with "The Real World," which will get a Paramount Plus reboot. Bakish said the service will include over 5,000 reality TV episodes, and in 2021 will launch a new reality series each month.

Bakish said Paramount Plus will have over 7,000 episodes of kids' shows. The company plans to build out already successful franchises like "SpongeBob Squarepants," "Dora the Explorer" and "Rugrats.

Well known franchises will be getting new life on the service as well, including a reboot of "Frasier," a spinoff from the "Halo" video game and "Beavis and Butthead" movie.

Content is King

Paramount Plus will offer over 2,500 films, the company said, including "Forrest Gump," "Indiana Jones," "Clueless," "Anchorman" and "The Godfather."

Optimistic analysts at Goldman Sachs pointed out in a note last month that Paramount Plus's expansive TV offering could be an important differentiator in the scorching hot streaming wars, which has seen a flurry of entrants over the last 18 months and now includes at least 10 viable subscription services on offer.

Paramount Plus' 30,000 episodes will dwarf the 8,000 available on HBO Max and 7,500 on Disney Plus, the analysts wrote.

Given that Paramount was one of the original Hollywood studios, it's only fitting that the service will have over 2,500 films, the company said. These will include a vast selection from both Paramount Pictures and Miramax Films, including "Forrest Gump," "Indiana Jones," "Clueless," "Anchorman" and "The Godfather."

Some yet-to-be-made films will debut exclusively on the service following a relatively short 30-45 day theatrical run, Bakish said. In the coming year these will include "A Quiet Place Part II" and "Mission: Impossible 7."

"I like that they're going to do shorter exclusive windows in theatrical but not eliminating them entirely, like AT&T did with HBO Max," said Laura Martin, media analyst at investment firm Needham.

ViacomCBS also owns ad-supported Pluto TV, which grew its global monthly active users by 80% year-over-year to 43 million, the company reported Wednesday. Bakish said the free service is poised to become a $1 billion line of business and also has potential to funnel users to its new paid service, Paramount Plus.

Some analysts are pessimistic about the new service's chances, however. Brandon Nispel, an equity analyst at KeyBanc Capital Markets, penned a note earlier this month suggesting that investors sell their ViacomCBS stock.

"We believe streaming only works if global scale can be achieved, like ~100M subs," he wrote.

ViacomCBS reported on Wednesday that across its current slate of streaming platforms – CBS All Access, Showtime OTT and BET Plus – it has nearly 30 million subscribers. The company said it expects it will reach between 65 and 75 million total subscribers by 2024.

For comparison, Disney Plus has about 95 million and Netflix about 200 million.

A Streaming War Combatant and Arms Dealer

ViacomCBS' pivot from a legacy media company toward a streaming focus isn't without precedent. That playbook has worked well for Disney, whose stock has reached record highs despite most of its business lines being decimated by the pandemic.

But replicating Disney won't be easy. For one, Paramount doesn't have the brand recognition or global distribution to rival that of the House of Mouse, Nispel wrote.

Nor will it help that Paramount Plus is a bit late to the game, as ViacomCBS has been relatively slow to pivot away from its "arms dealer" strategy of supplying content to other streaming companies. Last year the company made almost a quarter of its money from content licensing, according to Bloomberg.

"Every major streaming service has had a monster hit from one of our studios," said Bakish Wednesday. "If we direct that same great content engine back to our own streaming service...we can be successful, and that's exactly what we're setting out to do."

But the tone struck Wednesday by chairman Shari Redstone indicated that although ViacomCBS' streaming ambitions are growing, the company won't be quick to leave traditional media behind.

"We're not about only linear or only streaming; we're about both linear and streaming," she said. "The industry is transitioning but for consumers it's happening at different paces and in different places."

Martin likes that strategy, which she sees as a more sensible approach than Disney's abrupt pivot to streaming.

"There's so much money in linear, so it's better to try to maximize the income from all sources," she said. "This is a better business path compared to Disney, which is all-in on streaming."

Although, in the near term at least, ViacomCBS will be straddling past and present amid the ongoing transition from cable and linear TV to on-demand streaming – which has been happening faster among younger audiences – Redstone underscored that the strategy for ViacomCBS is the same as it's ever been.

"We are a pure-play content company," she told investors, pointing them to her late father's immortal adage: "Content is King."

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🍵☕️Top 6 Coffee Alternatives for Enhanced Productivity

In the fast-paced world of startups and venture capital in Los Angeles, maintaining peak productivity is essential for founders and investors alike. As the hustle intensifies, many are seeking alternatives to traditional coffee that not only provide a sustained energy boost but also support overall health and well-being. The following list highlights some of the top-rated coffee alternatives that can enhance focus and productivity while minimizing the adverse effects of caffeine. These options incorporate adaptogens, superfoods, and gut-friendly ingredients, making them ideal choices for those looking to optimize their performance without the afternoon crash.


Matcha

Image Source: Jade Leaf Matcha

Matcha is a finely ground green tea that offers a moderate amount of caffeine, along with L-theanine, which promotes relaxation without drowsiness. This combination can enhance focus and concentration, making matcha a suitable alternative for those looking to boost productivity without the jitters of coffee.

Popular Brands: ReNude Chaga Matcha (60 mg caffeine), Golde Pure Matcha (60 mg caffeine), Organic Ceremonial Matcha - Teahouse Edition (30 mg caffeine)


Dandelion Root Coffee

Image Source: Amazon

Dandelion root coffee is a caffeine-free alternative that mimics the taste of coffee. It is known for its potential to support liver health and digestion, which can contribute to overall well-being and productivity. The drink can help avoid the acidity and jitters that often accompany regular coffee, making it a gentler option for those sensitive to caffeine.

Popular Brands: Dandy Blend (0 mg caffeine), Teeccino Dandelion Dark Roast (0 mg caffeine)


Adaptogenic Drinks

Image Source: MUD\WTR Masala Chai

Adaptogenic beverages, which include ingredients like ashwagandha, reishi, and maca, are designed to help the body adapt to stress and promote mental clarity. These drinks can provide a sustained energy boost without the crash, supporting productivity throughout the day. They are often made with superfoods and spices that enhance both physical and mental performance.

Popular Brands: MUD\WTR Masala Chai (35 mg caffeine), Four Sigmatic Think Coffee (150 mg caffeine), ReNude Chagaccino (0 mg caffeine)


Golden Milk (Turmeric Latte)

Image Source: Golde

Golden milk, made from turmeric, ginger, and milk (or a milk alternative), is a caffeine-free option that can improve mood and reduce inflammation. The calming properties of this drink can help maintain focus and clarity, making it a great addition to a productive morning routine.

Popular Brands: Golde Turmeric Latte Blend (0 mg caffeine), Blume Turmeric Blend (0 mg caffeine), Four Sigmatic Golden Latte Mix (0 mg caffeine)



Chicory Root Coffee

Image Source: Teeccino

Chicory root coffee is an excellent alternative that satisfies the desire for a warm beverage without caffeine. It is rich in inulin, a prebiotic fiber that aids in digestion and promotes gut health by supporting beneficial bacteria. Chicory coffee has a nutty, earthy flavor and can help control blood sugar levels, contributing to overall energy and productivity throughout the day.

Popular Brands: Anthony’s Instant Chicory Root (0 mg caffeine), Teeccino Chicory Coffee Alternative (0 mg caffeine)


Yerba Mate

Image Source: Guayaki Yerba Mate

Yerba mate is a traditional South American herbal tea made from the leaves of the Ilex paraguariensis plant. It contains about 40-80 mg of caffeine per serving, which is less than a standard cup of coffee but enough to provide a gentle energy boost. Yerba mate is rich in antioxidants, vitamins, and minerals, and users often report feeling energized without the jitters or crashes associated with coffee. It has a unique, slightly bitter flavor and can be enjoyed in various forms, including loose-leaf tea and pre-brewed options.

Popular Brands: Guayaki Yerba Mate (40-150 mg caffeine)


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LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


    🤝 Venture Deals

    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
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    LA Venture Funds

    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
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      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

      Learn More Here

      Register Here


      Download the dot.LA App

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