When Viacom and CBS closed their merger in December 2019, the latter firm gained entry to a plethora of networks — networks the newly merged firm, ViacomCBS, is now bringing to distribution associate Google in a brand new cope with YouTube TV.
Nickelodeon, MTV, Comedy Central, BET, CMT, Paramount Community, TV Land, and VH1 will all launch on YouTube TV this summer time, the corporate introduced right now. The multi-year deal additionally contains prior CBS channels that have been accessible to YouTube TV subscribers, together with CBS broadcast stations, CBS Sports activities Community, Pop TV, Smithsonian Channel, and The CW. YouTube TV may also proceed to hold ViacomCBS’ premium cable model, Showtime, as a part of the prolonged distribution settlement. Monetary phrases of the settlement weren’t disclosed.
“We’re thrilled to have reached an expanded settlement with YouTube TV that acknowledges the total energy of our newly mixed portfolio as ViacomCBS,” Ray Hopkins, president of US networks distribution at ViacomCBS, mentioned in a press launch. “Google has been a superb associate, and we sit up for bringing much more of our leisure networks to YouTube TV subscribers for the primary time.”
Viacom’s assortment of established, in style cable channels is a bundle of property that YouTube TV can present to subscribers. Nickelodeon, MTV, BET, and Comedy Central will help usher in new subscribers or maintain present prospects from canceling their service. ViacomCBS has additionally labored with varied YouTube creators to create original series for these exact same networks. Distributing Nickelodeon, MTV, BET, and Comedy Central through YouTube, a platform their viewers is on, may assist attain viewers not buying cable packages or tuning into linear tv.
The rise in channels coming to YouTube TV, nonetheless, may doubtlessly precipitate a hike in month-to-month price for the service. When YouTube TV added Turner networks (TNT, TBS, CNN, truTV, Cartoon Community, and Grownup Swim) in 2018, the service saw a $5 price hike from $35 a month to $40 a month. Then, in April 2019, YouTube hiked the worth on its service one other $10 to $50 a month following the addition of Discovery channels (Discovery Channel, HGTV, Meals Community, TLC) and native feeds from 4 of the key broadcasters. These offers, on high of others that Google has made with firms like WarnerMedia (YouTube TV will carry HBO), a possible value hike isn’t out of the query.
Including extra channels means extra prices for Google, however YouTube TV is a rising enterprise that Google desires to put money into. CEO Sundar Pichai referred to as YouTube TV an “thrilling product” for the corporate in a February 2019 earnings call, including that it has “future worth” for the corporate as a result of it “brings our promoting merchandise collectively together with having the ability to serve it throughout TV.” YouTube TV presently has greater than two million subscribers.
“So we’re clearly investing in areas the place we see alternative,” Pichai mentioned. “We’re fairly thorough about ensuring our investments ship development on the opposite facet. And so we monitored with metrics and beat engagement and income development and we see plenty of alternative right here.”
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