August 2, 2018
CBS Corp. Aug. 2 announced that it expects over-the-top video platforms, CBS All Access and Showtime OTT, to reach a combined 8 million subscribers by 2019 – a year earlier than the previous 2020 projection.
The $5.99 and $10.99, respectively, priced services are projected to reach 16 million combined domestic subscribers by 2022 — excluding international subs.
“[They] are surpassing our expectations,” CEO Les Moonves said on the fiscal call. He said All Access is having success in Canada — the platform’s first international launch, with plans to bow service in Australia next.
“We’ll be entering territories where our content is already in great demand, and where our OTT platforms are getting huge traction, particularly among younger viewers,” Moonves said.
When asked about Amazon Channels’ impact on subscriber growth for All Access and Showtime OTT, Moonves said the commerce giant has been “absolutely amazing” helping grow subs.
“They’ve been at the top of the list. We get more [subs] from them than any of our partners,” he said. “We like what they do.”
Moonves said he could see five original shows launching on each platform network over the next couple of years.
“[They] certainly proven themselves, making a lot of hits,” he said. “We’re really pleased with their hunger to do more. More new shows means more new subs.”
The CEO, who is under internal investigation for inappropriate behavior in the workplace following an expose in The New Yorker, declined comment on the situation.
CBS said it continues to grow in content licensing, development and distribution to a host of third-party distributors such as Apple, Netflix, and TBS.
Indeed, content licensing and distribution second-quarter (ended June 30) revenue increased 3.7% to $1.09 billion from $1.05 billion in the previous-year period. Original content production was up 10% from the previous-year period.