Comcast and ViacomCBS are partnering to launch a streaming service in Europe, bringing together two longtime competitors to boost their stake in the streaming game.
The new SkyShowtime service is expected to launch next year in 20 European territories, including Albania, the Netherlands, Spain, Portugal and Norway. Comcast and ViacomCBS will have equal investment and joint control in the venture, which is subject to regulatory approval, the companies said.
The new service will include shows and movies from Showtime, Nickelodeon, Paramount Pictures, Sky Studios, Universal Pictures and the two companies’ own streaming platforms, Peacock and Paramount+.
Comcast's stock price was up slightly to $59.51 per share shortly after 10 a.m. Wednesday, and shares in ViacomCBS were up more than 4% to $40.70 per share.
Comcast CEO Brian Roberts, ViacomCBS Chairwoman Shari Redstone and CEO Bob Bakish reportedly discussed collaboration in international streaming or possibly spinning off NBCUniversal to merge with ViacomCBS earlier this summer, the Wall Street Journal previously reported. The deal was rumored to be on hold as the two media giants waited for regulatory approval of WarnerMedia’s merger with Discovery, according to Forbes.
Roberts said during the company’s second-quarter earnings call that Comcast didn’t "need M&A," but that the company could consider a partnership to improve its streaming position internationally.
Peacock has 54 million sign-ups, with 20 million monthly active users on the platform. Comcast (NASDAQ: CMCSA) used the Olympics and original streaming content to boost the streaming service, though the company has not released updated subscription numbers since before the Summer Games in Tokyo began. ViacomCBS (NASDAQ: VIAC) has about 42 million streaming subscribers globally, Deadline reported, including Paramount+, Pluto TV and other apps and sites attached to its networks.
Comcast and ViacomCBS face stiff competition in the global streaming wars. For comparison, Netflix has 209 million subscribers, Disney+ has more than 100 million subscribers, and HBO has about 67 million subscribers between HBO and HBO Max.
The new deal with ViacomCBS won’t be Comcast's first foray into the overseas streaming market. Roberts confirmed last month that Peacock will be integrated into Sky TV at no additional cost, making the service available in the United Kingdom, Germany, Ireland, Italy, Austria and Switzerland.
“On the heels of Peacock coming to Sky, this partnership provides an innovative approach to quickly scale internationally and monetize content across Europe,” said Dana Strong, group chief executive of Sky. “Drawing on the strength of the incredible programming from NBCUniversal, Sky, and ViacomCBS, and powered by Peacock’s platform technology, SkyShowtime will provide a truly compelling lineup for the whole family and strong brand recognition across these regions.”
