June 8, 2021
ViacomCBS has put much of its content distribution future on the Paramount+ subscription streaming service, but the media giant is already dominating the ad-supported streaming market, said ViacomCBS CEO Bob Bakish.
Speaking at the virtual Evercore ISI Inaugural TMT Conference, Bakish said the global AVOD market, which is exploding as consumers migrate away from pay-TV and toward over-the-top video, is going to be worth about $50 billion in the next four years. Leading the bull run: Pluto TV, which ViacomCBS acquired in 2019 for $340 million. Pluto TV founder Tom Ryan is now CEO of streaming at ViacomCBS.
“[Pluto TV] is the U.S. market leader, and it’s also undergoing rapid international expansion, making us a global leader as well,” Bakish said. “You look at the U.S., and based on all the data we see, we lead on the [50 million monthly average users] side, we lead on the viewership side and we lead on the revenue side.”
Bakish said that when Pluto was acquired, it had generated about $70 million in revenue in the prior year (2018). On a run-rate basis, in Q4 of 2021 this year, the CEO said Pluto will cross the $1 billion level.
“We expect it to be comfortably above $1 billion for full year 2022,” he said. “That is the power of Pluto TV.”
While the platform is essentially still a U.S. business, it is expanding to 25 foreign markets this year.
“So we see where this thing is going,” Bakish said. “We’ve seen where it’s gone in the U.S., and it’s got a ways to go, and we see where it’s going internationally. I couldn’t be more excited about Pluto. I don’t think we get enough credit, quite frankly, for it.”