CBS Eyes 25 Million Combined ‘All Access,’ ‘Showtime OTT’ Subs by 2022

CBS is projecting 25 million combined subscribers by 2022 for over-the-top video services CBS All Access and Showtime OTT. The guidance follows the two subscription streaming services reaching 8 million combined subs at the end of 2018 – two years ahead of schedule.

All Access launched in 2014 for $5.99 monthly with ads ($9.99 without) featuring original, primetime and catalog CBS programming online and streaming devices without long-term contract.

Showtime OTT bowed in 2015 featuring the premium channel’s original content and third-party movies for $10.99 monthly fee.

“We are generating significant momentum with our direct-to-consumer platforms, which provide a great return-on-investment and represent one of our most powerful long-term growth drivers,” Joe Ianniello, acting CEO said in a statement.

Indeed, growth in Showtime OTT subscribers through Amazon Channels helped drive cable networks revenue up 8% to $551 million for the fourth quarter (ended Dec. 31, 2018) from $508 million in the prior-year period. Other revenue drivers included higher international licensing sales, and revenue from the Deontay Wilder/Tyson Fury pay-per-view boxing event in December.

Operating income of $193 million decreased 7% from $207 million for the same prior-year period, reflecting an increased investment in programming.

Entertainment segment revenue — which includes All Access — dipped 1% to $2.83 billion from $2.86 billion, reflecting 14% lower content licensing and distribution revenue, mainly as a result of the timing of international licensing sales and several large domestic sales in the fourth quarter of 2017.

Affiliate and subscription fees grew 17%, led by growth from All Access and higher revenue from station affiliation fees and virtual MVPDs. Advertising revenue increased 2%, reflecting revenue from Network 10, which was acquired in the fourth quarter of 2017.

This increase was partially offset by the absence of the broadcast of “Thursday Night Football” in 2018. Underlying CBS Network advertising for the fourth quarter of 2018 increased 2% from last year’s fourth quarter.

Entertainment operating income of $438 million for the fourth quarter of 2018 decreased 6% from $465 million for the same prior-year period, primarily reflecting the lower revenue and an increased investment in content and digital initiatives. These decreases were partially offset by the absence of programming costs associated with “Thursday Night Football.”

 

 

Report: Third-Quarter Streaming Video Consumption Up 63%

Consumption of streaming video – via over-the-top platforms such as Netflix, Amazon Prime Video and Hulu — continues to mushroom.

New data from digital measurement firm Conviva found a 63% increase in third-quarter (ended Sept. 30) video viewing hours from the previous-year period. Video program plays increased 53%.

“Streaming TV consumption shows no signs of slowing down, and publishers have stepped up to the plate, delivering better quality and reliability that viewers have come to expect,” Conviva CEO Bill Demas said in a statement. “The demand for quality is pushing connected TVs to the top in terms of device share, commanding more than 50% of total viewing hours at the expense of PCs that have lost 7%, while mobile remains relatively flat.”

Indeed, the report — based on Conviva’s claims of tracking 1 trillion data events daily around the world – found that live sports (i.e. NFL football) streaming increased 3% in September, driven by Prime Video’s Thursday Night Football webcasts. Amazon said more than 8 million people collectively streamed the first four games of the season.

Connected TV video plays increased 145%, while viewing hours increased 103%. Online TV platforms such as Sling TV, YouTube TV, DirecTV Now, Spectrum TV Plus, PlayStation Vue, Pluto TV and Fubo TV helped mushroom video plays 292%, including 212% increase in viewing hours from the previous-year period.

And consumers are streaming longer-form (TV shows and movies) entertainment, with 111% increase in video plays and 93% increase in video hours streamed.

Finally, Roku remains the No. 1 streaming media device, commanding 40% market share in viewing hours.

Amazon Q3 ‘Stores’ Revenue Up 10%

Amazon Oct. 25 reported third-quarter (ended Sept. 30) online store sales of $29 billion, up 10% from sales of $26.3 billion during the previous-year period. Physical store (two locations) sales topped $4.2 million from $1.3 million.

The ecommerce behemoth says online stores revenue includes product sales, physical and digital media, such as books, music, videos, games, and software. This includes digital products sold on a transactional basis such as Amazon Instant Video.

Separately, Amazon said the second season of “NFL Thursday Night Football” on Prime Video reaching more than 8 million combined viewers worldwide through the first four games on Prime Video and Twitch.

Amazon this season added a new alternative audio feed featuring sports journalists Hannah Storm and Andrea Kremer, the first-ever all-female sportscasting team to call NFL games. In addition, Amazon is bringing interactivity to TNF with several innovations, including “X-Ray for TNF” on FireTV, enabling viewers to access live stats, player information, and in-app shopping; as well as the “TNF on Twitch,” affording global users interactive access to watch, comment, and predict game outcomes.

In addition, Prime Video debuted original series “Tom Clancy’s Jack Ryan,” “The Romanoffs,” and season 3 of “The Man in the High Castle.” Upcoming original series include “Homecoming,” a psychological thriller starring Julia Roberts, and produced and directed by Sam Esmail; as well as season 2 of “The Marvelous Mrs. Maisel,” recent winner of eight Emmy awards including Outstanding Comedy Series.