Apple+ and Paramount+ have reportedly discussed the possibility of bundling their streaming services into one, according to a report by the Wall Street Journal.
The talks are in their preliminary stages, and if they are successful, subscribers will pay less for the bundled package compared to the combined monthly fee of individual Apple TV+ and Paramount+ subscriptions.
After the news, Paramount saw a nearly 10% surge in stock price on Friday. However, the stock remains down 6% this year. According to Paramount Global, Paramount+ has more than 63 million subscribers as of Q3 2023.
The Deal is Beneficial to Paramount
The WSJ report said that the two companies seek to reduce subscription costs for users paying for the two individual services.
The subscription for the Paramount+ Essential Tier is $5.99. Additionally, the fee for Paramount+ with Showtime is $11.99, according to the website.
On the other hand, Apple charges $9.99 for an Apple+ subscription. The company increased this subscription by $3 in October.
The benefits of this deal also extend beyond costs, as it will help Paramount align with the changes in the media industry. The company has been facing decreasing revenues and streaming losses in recent years.
Apple TV + and Paramount+ also offer different content strategies. Apple TV+ supports a wide range of exclusive and prestigious content, while Paramount+ offers some popular movies and TV shows.
Streaming Rivals Continue to Team Up
The partnership deal between Apple and Paramount is not the first. Other streaming giants are also opting to team up to stop the outflow of subscribers because of increased costs.
Netflix secured a similar deal with Max in November. The deal involved bundling the two streaming services at only $10 monthly. This amount is lower than the $17 paid by those subscribing to the two services individually.
Executives from Liberty Media and Warner Bros. Discovery have previously discussed streaming bundles. Entertainment giant Disney already supports streaming services such as Disney+, ESPN+, and Hulu.
Entertainment giants are also partnering for more than just streaming services. Earlier this year, Disney and Charter secured a deal for some Spectrum users to secure access to the Disney+ channel with ads.
Following this deal, some experts speculated that such partnerships would become increasingly popular. Netflix also recently rolled out an ad-supported plan that costs less.