Paramount, Apple Stocks Rise After Report On Talks To Bundle Streaming Services

Takeaways

Paramount Global and Apple shares rose following a report that they were in discussions to combine their streaming services at a lower cost.
The plan would offer Paramount+ and Apple TV+ to customers at a lower price than they would pay to subscribe to both separately.
Streaming providers can use bundling to make subscriptions more attractive to consumers.

Shares of Paramount Global (PARA) jumped more than 9% on Friday and shares of Apple (AAPL) rose 0.7% following a report that the two companies are in talks to consolidate their streaming services.

The Wall Street Journal reported that the discussions involved offering customers a combination of Paramount+ and Apple TV+ it would cost less than subscribing to both separately. He added that negotiations were in their early stages and it was still unclear what a deal would look like.

The paper notes that because consumers pay monthly for streaming services, it's easy for them to cancel if they've seen the specific entertainment they signed up for, and that combining two services with a greater variety of options could allow the program to continue. more attractive subscription.

The Journal initially reported In November, Verizon Communications (VZ) would consolidate the ad-supported versions of Netflix (NFLX) and Warner Bros. Discovery's (WBD) Max for around $10 per month, with a $7 discount off individual subscription prices combined.