ViacomCBS Unveils Brand for Upcoming Global Streaming Service: Paramount+
CBS All Access to Be Rebranded as Paramount+ in Early 2021
International Launch in 2021 with Initial Debut in Australia, Latin America, and the Nordics
Additional Exclusive Original Series Planned for Paramount+ from CBS, BET, MTV and Paramount to Join Its Unique Combination of Live Sports, Breaking News and Premium Entertainment
Plans Include Five New Original Series for the Service: THE OFFER, a Limited Event Series About the Making of “The Godfather,” One of the Most Legendary Films in Paramount’s History from Oscar and Emmy-Nominated Writer Michael Tolkin; LIONESS, from “Yellowstone” Creator Taylor Sheridan; a New Edition of BEHIND THE MUSIC from MTV; THE REAL CRIMINAL MINDS True Crime Docuseries; and a Revival of BET’s THE GAME
Additional Original Series to Be Announced in Advance of Launch
New York--September 15--ViacomCBS (NASDAQ: VIAC, VIACA) today unveiled “Paramount+” as the brand name for the company’s upcoming global streaming service, building on a legacy of innovation and superior storytelling that distinguishes one of the most iconic brands in Hollywood. The company’s transformed subscription video on-demand and live streaming service, CBS All Access, will be rebranded as Paramount+ in early 2021 as part of the service’s expansion to feature content from ViacomCBS’ leading portfolio of broadcast, news, sports and entertainment brands. ViacomCBS will also bring Paramount+ to international markets with an initial debut in Australia, Latin America and the Nordics in 2021.
“Paramount is an iconic and storied brand beloved by consumers all over the world, and it is synonymous with quality, integrity and world-class storytelling,” said Bob Bakish, President and CEO, ViacomCBS. “With Paramount+, we’re excited to establish one global streaming brand in the broad-pay segment that will draw on the sheer breadth and depth of the ViacomCBS portfolio to offer an extraordinary collection of content for everyone to enjoy.”
Today, ViacomCBS also revealed plans for additional new original series for Paramount+:
- THE OFFER, a scripted limited event series from Paramount Television Studios, based on Oscar-winning producer Al Ruddy’s extraordinary, never-revealed experiences of making “The Godfather.” The 10-episode event series is written and executive produced by Michael Tolkin (“Escape at Dannemora” and “The Player”). Ruddy will also serve as executive producer, and Emmy-winning producer Leslie Greif (“Hatfields & McCoys”) will executive produce and be a writer on the series.
- LIONESS, a spy drama created by Taylor Sheridan (“Yellowstone”) with Sheridan, Jill Wagner, David Glasser, David Hutkin, and Bob Yari set to executive produce. Based on a real-life CIA program, LIONESS follows a young Marine recruited to befriend the daughter of a terrorist to bring the organization down from within. The series is produced by Paramount Network and 101 Studios.
- A reimagination of the Emmy®-nominated series “Behind the Music” entitled MTV’s BEHIND THE MUSIC – THE TOP 40, which will unlock MTV’s vault from the past 40 years for a unique and intimate look at the 40 biggest artists of all time, through their voices and their eyes. The series will be produced by Creature Films and MTV Studios.
- THE REAL CRIMINAL MINDS, a true crime docuseries based on the hit CBS Television series, and produced by XG Productions in association with CBS Television Studios and ABC Signature.
- The service is also developing a revival of THE GAME as part of BET’s programming on Paramount+ from CBS Television Studios and Grammnet Productions.
The new original series announced today join the service’s previously announced plans for KAMP KORAL, a new original children’s series from Nickelodeon’s SPONGEBOB SQUAREPANTS, and the service’s role as the exclusive SVOD home to THE SPONGEBOB MOVIE: SPONGE ON THE RUN in early 2021. Additional new original content will be announced ahead of launch.
This programming will join CBS All Access’ robust existing offering of more than 20,000 episodes and movies from BET, CBS, Comedy Central, MTV, Nickelodeon, Paramount Pictures and more, as well as exclusive original series including THE GOOD FIGHT, THE TWILIGHT ZONE, TOONING OUT THE NEWS, NO ACTIVITY, WHY WOMEN KILL, INTERROGATION, THE THOMAS JOHN EXPERIENCE and TELL ME A STORY, as well as upcoming series THE STAND, THE MAN WHO FELL TO EARTH, THE HARPER HOUSE, and GUILTY PARTY. The service is also the exclusive domestic home to STAR TREK: DISCOVERY, STAR TREK: PICARD, the animated series STAR TREK: LOWER DECKS and the upcoming U.S.S. Enterprise-set series STAR TREK: STRANGE NEW WORLDS.
Since the transformation of CBS All Access began in late July, the service has experienced significant growth and engagement. With the addition of a diverse mix of content, including UEFA, BIG BROTHER LIVE FEEDS, STAR TREK: LOWER DECKS and more than 3,500 episodes from across ViacomCBS’ brands, the service broke a new record for total monthly streams in August and experienced one of its best months ever in terms of new subscriber sign-ups. In addition, the average age of new subscribers in August was measurably younger than the service’s overall average subscriber age, due in large part to the addition of UEFA and the newly added content from various ViacomCBS brands.
Leading up to the early 2021 rebrand to Paramount+, CBS All Access will expand its content offering to more than 30,000 episodes and movies and continue to develop additional original series across brands including BET, CBS, Comedy Central, MTV, Nickelodeon, Paramount Pictures and more, transforming it into a diversified super service for the ViacomCBS portfolio.
“The response from consumers in just the early weeks of the service’s expansion already illustrates the tremendous opportunity ahead of us in bringing these phenomenal ViacomCBS brands together in one premium streaming home under the new Paramount+ name,” said Marc DeBevoise, Chief Digital Officer, ViacomCBS and President & Chief Executive Officer, ViacomCBS Digital. “With the addition of even more content from across the portfolio as well as the new exclusive originals we are announcing today, we look forward to the early 2021 rebrand and bringing existing and new subscribers more of the compelling, genre-spanning live sports, breaking news and mountain of entertainment ViacomCBS has to offer.”
ViacomCBS currently uses the Paramount+ brand for its international OTT app, which is available in Latin America, the Nordics, Eastern Europe, Russia and Latin America. Like CBS All Access, Paramount+ also features content from Nickelodeon and Nick Jr.
Additionally, ViacomCBS has launched a similar Nick+ (Nickelodeon+) product in Portugal, Greece, Germany and Canada.
About CBS All Access:
CBS All Access is ViacomCBS’ direct-to-consumer digital subscription video on-demand and live streaming service. CBS All Access gives subscribers the ability to watch more than 20,000 episodes and movies on demand – including exclusive original series, current and past seasons of hit shows from the CBS Television Network and growing libraries from brands across the ViacomCBS portfolio including BET, Comedy Central, MTV, Nickelodeon, Smithsonian and more, as well as a wealth of films from Paramount Pictures. The service is also the streaming home to unmatched sports programming, including every CBS Sports event, from golf to football to basketball and more, plus exclusive streaming rights for major sports properties, including some of the world’s biggest and most popular soccer leagues. CBS All Access also enables subscribers to stream local CBS stations live across the U.S. in addition to the ability to stream ViacomCBS Digital’s other live channels: CBSN for 24/7 news, CBS Sports HQ for sports news and analysis, and ET Live for entertainment coverage.
The service is currently available across all major device platforms including online, mobile and connected TV and OTT platforms and services. Versions of CBS All Access have launched internationally in Canada and Australia (10 All Access), with unique but similar content and pricing plans. For more details on CBS All Access, please visit https://www.cbs.com/all-access.
About ViacomCBS:
ViacomCBS (NASDAQ: VIAC; VIACA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, CBS All Access, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, ViacomCBS provides powerful capabilities in production, distribution and advertising solutions for partners on five continents.
For more information about ViacomCBS, please visit www.viacomcbs.com and follow @ViacomCBS on social platforms.
Official ViacomCBS Australia & New Zealand press release:
ViacomCBS Unveils New Brand For Transformed 10 All Access And Global SVOD Services: Paramount+
• 10 All Access to be rebranded as Paramount+ in 2021.
• ViacomCBS’ global subscription video on-demand services will also carry the Paramount+ name.
• Rebranded service to feature Original series Lioness, from Creator Taylor Sheridan, First Ladies and The Offer.
Sydney, Australia – September 16, 2020 – ViacomCBS Australia & New Zealand today announced its subscription video on-demand and live streaming service, 10 All Access, will be rebranded as Paramount+ in 2021.
ViacomCBS global subscription video on-demand services will also be named Paramount+, establishing one cohesive global consumer brand that illustrates the breadth of content and genres these services provide under the banner of one of Hollywood’s most storied legacies.
David Lynn, President and CEO, ViacomCBS Networks International (VCNI), said: “With the global launch of Paramount+ we are poised to become as powerful a player in streaming as we are in TV. VCNI is focused on building a meaningful, global brand presence in our key markets, generating material advertising, subscription and licensing revenue from streaming.
“By leveraging the iconic Paramount brand, leading edge infrastructure from ViacomCBS along with an incredible, super-sized pipeline of must-see content, Paramount+ will deliver an exceptional consumer entertainment experience and significantly disrupt the streaming industry.”
Chief Content Officer & Executive Vice President of ViacomCBS Australia & New Zealand, Beverley McGarvey, said: “The rebrand of 10 All Access to Paramount+ confirms its place in ViacomCBS’ global streaming network which will carry iconic ViacomCBS library content.
“As we continue to build out our multi-platform offering and with a firm focus on building our streaming offering, we’re really thrilled to be bringing the Paramount+ brand to local audiences.”
Today, ViacomCBS also revealed plans for three new original series for Paramount+ in Australia. Lioness, a spy drama created by Taylor Sheridan (“Yellowstone”) with Sheridan, Jill Wagner, David Glasser, David Hutkin, and Bob Yari set to executive produce. Based on a real CIA program, Lioness follows a young Marine recruited to befriend the daughter of a terrorist to bring the organization down from within. The series will mark the first original for Paramount Television on the service.
Paramount+ will be the exclusive home of SHOWTIME premieres, including the hour-long drama First Ladies, starring and executive produced by Oscar®, Emmy® and Tony® winner Viola Davis winner Viola Davis, who will play former first lady Michelle Obama.
The service has also ordered The Offer, a scripted series from Paramount Television Studios based on Oscar®-winning producer Al Ruddy’s extraordinary, never revealed experiences of making “The Godfather.”
The 10-episode limited event series is written and executive produced by Michael Tolkin (“Escape at Dannemora” and “The Player”). Ruddy will also serve as executive producer and Emmy-winning producer Leslie Greif (“Hatfields & McCoys”) will executive produce and be a writer on the series.
This programming will join 10 All Access’ existing offering of more than 10,000 episodes and movies from CBS, CW and Network 10, as well as original series like The Good Fight, The Twilight Zone, Tooning Out The News, Interrogation, Why Women Kill and Tell Me A Story.
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From TheWrap:
Bob Bakish Explains Why ViacomCBS Chose Paramount+ Name for Rebranded Streaming Service
ViacomCBS CEO calls newly-named streamer the start of “an exciting new chapter” for the studio
ViacomCBS CEO Bob Bakish explained why the company landed on the name Paramount+ for its rebranded streaming service.
“It’s a brand with a history of innovation, it’s over a century old, and a legacy of producing great content,” Bakish said Tuesday during the Goldman Sachs Communacopia Conference Tuesday. “It’s a brand that has always brought people together to enjoy the entertainment experience. Importantly, it’s a brand that also leverages ViacomCBS’ global position with near universal brand recognition. The fact is consumers all over the world know the Paramount brand, and they love it. So it’s a natural choice for us.”
Bakish argued plastering the Paramount name on its streaming service could also bolster the studio’s footprint. “It is really the beginning of an exciting new chapter for one of the most storied brands in Hollywood,” he said.
On Tuesday morning, ViacomCBS revealed that CBS All Access will be called Paramount+ beginning early next year.
The rebranding is the second, and much bigger, phase of the two-phase expansion of CBS All Access, which first launched in 2014 and was among the earliest entrants in the streaming space. In July, All Access added more than 3,500 episodes from Viacom networks BET, Comedy Central, MTV, Nickelodeon and Smithsonian Channel, along with a smaller redesign that incorporates hubs for the Viacom networks.
ViacomCBS says in the weeks since the July addition of content, All Access broke a new record for total monthly streams in August and experienced one of its best months ever in terms of new subscriber sign-ups (though revealed no actual numbers). In addition, the average age of new subscribers in August was measurably younger than the service’s overall average subscriber age, due in large part to the addition of UEFA and the newly added content from various ViacomCBS brands.
“We feel very good about the growth projection that we’re on,” said Bakish.
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From IBC365:
INTERVIEW: TED SCHILOWITZ, PARAMOUNT PICTURES
Paramount’s resident futurist talks AR and VR, branching narratives, volumetric video and how the pandemic has helped accelerate new ways of working.
Remote working is second nature to Ted Schilowitz, Paramount’s resident futurist who adds - without irony – he’s just been waiting for the rest of the world to catch up with him.
“My work’s always been about remote everything and digital assets - many of the things that have become everyday occurrences now have been part of my word for years,” he says.
Home-based since the pandemic forced Hollywood’s studios to shut six months ago, the man responsible for shepherding Paramount’s future – and that of its parent enterprise ViacomCBS – has lately been involved in advising staff on how to manage remote workflows and video coms during lockdown.
“My main advice is just to get comfortable with it, it’s just another way to communicate, to understand things like network latency, to be short and pithy with your responses and to try not to talk over people.”
On this latter point he adds, “Duplex communication hasn’t caught up with video world. If you are in a big group of 40 people there is the software out there to alert people to the fact that you want to say something - but nothing beats just raising your hand.”
With a remit to explore new technologies, new platforms and new ways of working, Schilowitz is also looking beyond the video call, and is encouraging content creatives to use VR tools and avatars for social, business and personal communications.
He adds that the company uses a cross-platform software called Spatial to enables users to use their own choice of VR or MR headsets.
“It’s working well, we’ve moved beyond the experimental phase. We can do strategy meetings, creative meetings and project planning meetings and we can bring up all these assets as if we were in a real room,” he says.
And he’s convinced that this form of immersive communication offers added value over standard video conferencing technology.
“Think about any kind of conversation that you’d have over lunch, a dinner or a coffee with a small group of people versus sitting by a video window with two computers. Almost anything can be better if it feels more real.”
Extending reality
Part of Schilowitz’s role is to keep tabs on consumer trends and he adds that what audiences choose to do in their leisure time forms “the broad starting point” for most of his future mapping.
In the case of VR, he notes that the Home Entertainment sector has seen a massive uptick since the Pandemic, as people spend more time at home and look to take a break from the real world – to the extent that there were reported shortages of Oculus Quest headsets for a time.
While most content consumed on these platforms is interactive, Schilowitz observes that the medium is slowly evolving to offer experiences that are “more of a mix between passive engagement and interactivity” – something that arguably works better on TV platforms.
It’s an area he notes, that Apple is keen to move into, with news reports last month claiming the tech giant is set to add AR content to its Apple TV+ streaming video service.
“I still don’t think that the RED camera gets the credit it deserves”
‘Bonus’ features may include characters or objects from a show that are able to integrate into the surrounding environment.
Schilowitz believes that this is a precursor to what Apple has been working one the last five years, the endgame being its own VR/ MR headset/ glasses. He notes that Apple’s move into AR TV also follows the acquisition of a series of immersive startups, the most recent being Next VR, in May.
“Apple hasn’t talked specifically about headsets, but all you have to do is look at the companies they’ve acquired and the tech that they’ve implemented and the job postings and you can make approximations that they are working on something big in this area,” he says.
On how this might shape content specifically, Schilowitz is not yet clear, but he predicts that in the next three to five years (“or five to seven if we’re being conservative”) there will be a “huge piece of MR cross platform entertainment content” that is set to “eclipse Pokémon Go in terms of its magnitude”.
On Paramount’s own plans all he will reveal is that it is “definitely working on lots of things that relate to that.”
Branching narrative
Another big area for the studio is choose-your-own-adventure-style branching narrative TV shows, especially for Viacom’s Youth brands, which include MTV, Nickelodeon and Noggin.
“We’ve experimented using a user group with a controlled movie – now we’re pivoting towards home user multi-user choice,” he says.
He adds however, that TV branching narratives are still very much in their infancy. “I don’t think that it’s a very mature pursuit yet when you compare it to how video games tackle narrative - but its something to keep a close eye on.”
The way the games industry continues to have a huge impact on the way TV and film content is made - thanks to the real time 3D rendering capabilities of gaming engines such as Unity and Unreal - will continue to evolve, he predicts.
“Games engines have become hypercritical to us- especially in the age of the pandemic. Just from a safety standpoint we continue to look at virtual production, virtual backgrounds, and continue to be more successful in making that movie magic happen,” he says.
Volumetric video
There’s a vision that in the not-to-distant future as we move from the flat screen into the spacial realm, it will be possible to move around inside live action video and cinema imagery, which may lead to new kinds of Holographic-style immersive entertainments.
Volumetric capture and video is area that Schilowitz is deeply invested in. He’s involved in a number of startups in this area including 3Infinate (formerly HypeVR.
However, he is less impressed by the big tech firms’ early explorations into this realm – the 2018 Red and Facebook volumetric project Manifold being a prime example.
“That’s a case of a ‘Look See” discussion involving two very large companies who were trying to throw as much of a resource tree as they could at something without the intimacy and understanding of how to tackle a problem,” he says.
“Big organisations are not getting it right yet and are tending to acquire smaller start ups which are. And that’s an area of long-term purist for me - and others,” he says.
A more successful Red foray was convincing Hollywood to move to digital away from film – something that Schilowitz played a key role in at the time.
“Considering Red very much changed the face of that industry, I still don’t think that it gets the credit it deserves,” he muses.
Another move that earned him his futurist stripes was through the co creation and launch of G-Tech’s advanced hard drive storage products - ultimately bought by Hitachi and used worldwide.
According to Schilowitz, a common denominator in successful launches is having the foresight to understand what the market wants and being able to deliver on that promise.
“It’s a deep study of the desire for people to have the best creative tools that they can, without the shackles and restrictions of one that very few can access.
“The tenant of my professional career has been: If you can build something that is exceptionally good, and also breaks down barriers to entry, you have a successful combination.
“That opens up huge horizons for so many more people to be a part of it – and if you can enable this, then amazing things will happen.”
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From The Hollywood Reporter:
"Live Sports, Breaking News and a Mountain of Entertainment": ViacomCBS CEO Bob Bakish Outlines Paramount+ Vision
Paramount+ remains on track to launch in early 2021, the executive said at the Code Media conference Wednesday.
ViacomCBS is on track to rebrand its CBS All Access streaming service as Paramount+ in early 2021, CEO Bob Bakish said Wednesday.
Speaking at a virtual installment of the Code Media conference, Bakish outlined how the company plans to position the service in the marketplace, emphasizing "live sports, breaking news and a mountain of entertainment" (the Paramount logo, of course, features a snow-capped mountain).
Why, moderator Peter Kafka asked, will the company emphasize sports and news before its vast library of entertainment programming?
"Part of it is differentiation, the NFL, UEFA, the PGA, NCAA, that is a differentiating characteristic in the over-the-top space," Bakish said, adding that its streaming news operation is also unique; he does not think people would pay for a stand-alone streaming news service. "Some of our competitors have been less successful in articulating their positioning."
Paramount+ will inherit the sports rights held by CBS All Access, which most notably include the NFL, NCAA March Madness basketball and UEFA soccer.
Bakish also discussed leveraging the ViacomCBS TV brands on Paramount+, with Nickelodeon owning the kids space, MTV and Comedy Central positioning themselves toward younger viewers, and CBS appealing to a broader, older audience.
He also acknowledged when asked that the 2019 deal to sell exclusive South Park streaming rights to HBO Max may not have been made today.
"You have to rewind the tape. That decision was made at Viacom legacy, when we didn’t have a path to a scalable pay service," Bakish said. "It made all the sense in the world, at the time."
As for why the company decided on using the Paramount brand for the new service, Bakish touted "near-universal brand awareness," on both a global basis and a demographic basis, one that people also associated with TV. "It stands for super high-quality entertainment," Bakish said. "This is a 115-year-old studio that has been continuously reinvented over a century, starting with the talkies."
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From The Hollywood Reporter:
Streaming 2.0: What’s Coming Next to the Streaming World?
There’s no doubt that streaming video is the present (thanks, pandemic!), as well as the future of entertainment. But which platform will dominate the so-called streaming wars is still up for debate. Kevin Beggs, the chairman of Lionsgate Television Group, believes that price will help some consumers decide, but so will content: It “may come down to the hits and what shows are mandatory viewing and worth the price,” he says.
As consumers try to choose, they are sampling across platforms. Rose Hulse, the founder and CEO of ScreenHits TV, says that based on her company’s data, “The majority of viewers have two to three streaming platforms, but only use one 95 percent of the time, dipping into the others for 5 percent of the time.” That is an enormous disparity in viewing habits and one that could be hard for streaming platforms to surmount. So, the question is: How does a platform become the go-to choice for a viewer? How can a new platform elbow its way into a crowded and competitive marketplace filled with the likes of Netflix, Disney+, HBO Max, Hulu and Amazon? That was the question Scott Roxborough, European bureau chief of The Hollywood Reporter, posed to a group of streaming video experts during a recent panel discussion.
The big takeaway is an old one, which remains true: Content is king. “What we believe is really going to set everyone apart is obviously the IP,” says Kelly Day, chief operating officer of ViacomCBS Networks International. “It really comes down to the content, the talent, and having things that, frankly, people are willing to go out of their way to find and are really excited to watch.” When her company launches Paramount+ in 2021, it will offer viewers access to shows and movies from Showtime, Paramount, CBS and all the Viacom brands, including MTV and Nickelodeon, as well as a slate of original programming and franchises that come with a built-in fan base, like Star Trek.
Beggs agrees that “finding those big noisy shows that will find new customers” is important, but so is price. “That’s why a platform like Netflix has had such success — relatively low price for the amount of content that it generates,” he says. “I think that will be a dividing line among all these services.” Consumers have to choose where to spend their money and will spend it on shows they consider must-see-TV, which Day thinks will be “big tentpoles and big franchises” and Beggs views as “network-defining shows like Mad Men, Weeds and Orange Is the New Black.”
To connect with viewers, Henning Tewes, the CEO of TVNow, which is the streaming platform run by RTL, one of Europe’s largest broadcast networks, sees room for local players. “Our focus is with the 47,000 hours of content on TVNow that is our German-language drama and television,” he explains. Day says that ViacomCBS is also creating local content. As a broadcasting streamer, it has an added edge in that it can air an original series on network television as a way of marketing the show. Of course, the reverse of that worked really well for Schitt’s Creek, which Lionsgate originally aired on Pop before moving it to Netflix. There, it connected with a much larger audience and ultimately won a slew of Emmy Awards. “That never would have happened without that extra accelerant, if you will, of getting on a much bigger platform,” Beggs says, explaining that the show’s success drove viewers back to Pop. Ultimately, according to Beggs, “the marketing was the platform.”
Marketing is an incredibly important way to help viewers find a show in the sea of content that exists online. “A lot of it comes down to how effective your marketing is for the shows but also the service,” says Day. For her part, Hulse believes that discovery platforms could help consumers actually find TV shows they want to watch — a real feat in a world with hundreds of thousands of hours of shows and where subscription fatigue is real. That in turn could eliminate churn and drive subscriptions, a win for streaming platforms. When you have happy customers and executives, that is the sign of a very bright future. Tewes does have one word of caution for platforms and viewers alike: “The winners and losers will be decided on by the factors of content and patience. It will take awhile to get it right.”
This feature was created in paid partnership with our partner, Screenhits TV. Learn more HERE.
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From Seeking Alpha:
ViacomCBS, Inc. (VIAC) Presents at UBS Global TMT Broker Conference Call - (Transcript)
ViacomCBS, Inc. (NASDAQ:VIAC) UBS Global TMT Conference December 8, 2020 1:00 PM ET
Company Participants
Bob Bakish - President, CEO & Director
Conference Call Participants
John Hodulik - UBS Investment Bank
John Hodulik
Hi. It's John Hodulik, the telecom, media and communications infrastructure analyst here at UBS. And I am pleased to introduce Bob Bakish, the President and CEO of ViacomCBS as our lunch keynote speaker. Bob, thanks for being here.
Bob Bakish
Thanks, John. Real pleasure to be here virtually. Look forward to doing it in person next time, but great to be here for lunch virtually.
Question-and-Answer Session
Q - John Hodulik
Absolutely. And it's been about a year since we spoke in this forum, which is right after the merger closed. And as you suggested, a lot has happened this year. And maybe to set the stage, could you take us through some of the highlights for ViacomCBS?
Bob Bakish
Yes, sure. So as you said, last time we spoke, it was almost exactly a year ago, just after we closed the Viacom-CBS merger. At the time, I think it's fair to say that you and investors had questions about how we'd unlock value from the combination. Since then, we really have been focused on executing and in fact, have unlocked the power of the combination on multiple dimensions.
We've built a best-in-class management team, which is able to operate one ViacomCBS. You saw us consolidating ad sales, et cetera. And most recently, you saw us create a new, consolidated streaming organization.
We also accelerated our strategy and execution across pay and free streaming. And you see that driving growth in subscribers, monthly active users and revenue.
We, of course, continue to produce hit content, which resonated with consumers across demographics, across genres and across formats. We did a lot of work on the distribution side and in fact, expanded our footprint, unlocking value through cross-company renewals and new deals. We strengthened our positioning in advertising by bringing to bear the power of our combined portfolio and capabilities. We saw that work very well, for example, in this complicated upfront. We definitely improved our operational efficiency and in fact, exceeded the cost synergies we promised for 2020 and are on track to exceed them for the 3-year term that we talked about.
And we've unlocked value from noncore asset sales, including the divestiture of CNET and most recently, Simon & Schuster. So all this we got done despite the complexity of the pandemic. So as you said, 2020 was quite a year. But importantly, 2020 was a year where we delivered on our objectives, and we're really excited about what's to come.
John Hodulik
Great. On your last earnings call, you provided investors with a helpful outlook about -- of how you expected the year to end. I think one of the things we heard yesterday with our ad panel that the ad market was coming back so much stronger than people had expected. Any update you can give us about Q4 trends?
Bob Bakish
Yes. So on our Q3 call, you look at the metrics that we disclosed, it demonstrated real momentum across multiple lines of our business. And on that call, we said we were optimistic about trends heading into Q4. With that, I'm happy to say that the momentum continued as we expected in advertising, as you noted, in affiliate and streaming. And we're reiterating all the guidance that we gave on that call.
So in advertising, you're right, the market is good. We continue to expect improvement in year-on-year growth rates in Q4 relative to Q3. On the affiliate side, we delivered a very strong 10% total affiliate growth and 4% domestic cable affiliate growth in Q3. And we do expect to deliver similar growth rates both -- for both again in Q4.
On the free cash flow side, we'll deliver adjusted free cash flow for the full year well ahead of where we originally expected when we started the year. And then in streaming, we will reach at least 30 million MAUs domestically in free and in fact, cross 40 million globally. And on the pay side, we'll have at least 19 million subscribers.
Importantly, again, thinking about the streaming business, we now see domestic streaming and digital video revenue, which does include some ad sales money at an annual run rate in Q4 of $3 billion. That's up from the $2.8 billion and change we talked about on our Q3 call. And that implies over 50% growth in the quarter.
So you look at that and you can tell why I'm so proud of the progress we've made in streaming. And I also want to say that we're going to hold an investor event in early '21 to discuss our streaming strategy and aspirations in much more detail. There, we'll share more about our plans for Paramount+, including an update on the content slate, our distribution and marketing strategy and our film utilization plans. And here, you'll really see how our brands and franchises, combined with our traditional reach and relationships, will provide real advantage for us in this space.
We'll also give you an update on our entire streaming ecosystem, and that includes Pluto TV as well as Showtime OTT, and we'll share with you how we're using the assets of this great company to pursue a global streaming strategy. So again, really excited about what we're seeing in the quarter.
John Hodulik
Great. Before we dig into each one of these and hopefully try to front run your D2C event next year, you mentioned the Simon & Schuster sale. That was the sort of most recent news you guys had out there. Just some details on that. When do you expect the deal to close? Anything you could tell us about the tax basis and the -- maybe use of proceeds from that transaction?
Bob Bakish
Yes. So late last month, we entered into a definitive agreement to sell Simon & Schuster to Penguin Random House. That's a wholly owned subsidiary of Bertelsmann for $2.175 billion in cash. And that's an extraordinary value, but it's reflective of the fact that Simon & Schuster is a global publisher with some of the world's best-known books, and it's firing on all cylinders. And it's also the outcome of a highly competitive auction that really attracted interest from buyers, including buyers all around the world.
I think it's worth noting that the divestiture follows a strategic review of ViacomCBS assets that we undertook in early 2020, one where we identified noncore assets based on the lack of a fit with our studios, networks and streaming focus. As you know, we already closed on the sale of CNET in October, and we expect to close on the sale of Simon & Schuster in 2021. Put those transactions together and the result is gross proceeds of just short of $2.7 billion. We'll use those proceeds to invest in our strategic growth priorities. We'll fund our dividend, and we'll pay down debt in order to reach our 2.75x leverage target.
John Hodulik
Got you. So we're here at a time of massive change in the media industry, and we've heard about all the efforts going into the shift in the business models that are taking place as consumption of video migrates. Can you talk about how ViacomCBS is positioned to capture these new opportunities? You talked about the launch of Paramount+ in 2021. How should we think about how the company is positioned in this new playing field?
Bob Bakish
Yes. So look, this is definitely a time of change, and streaming certainly matters more than ever. And we're aggressively leaning into it on a global basis and using our strength in content, in brands and distribution to accelerate that streaming business.
Now we believe in broadly serving consumers. And so what we're doing is progressively building a linked ecosystem of differentiated offerings across free and pay streaming. And that ecosystem is centered on Pluto TV in free and Paramount+ and Showtime OTT on the pay side. So in free, as you know, Pluto TV is the leader in free ad-supported streaming television or FAST, as it's called. And we're really excited about its trajectory as we focus on growing it here in the U.S. and abroad. I think it's fair to say that the world is quickly embracing free streaming, which is why Pluto TV is key to our strategy. And as we progressively build out this ecosystem, Pluto is going to serve as a powerful gateway to and funnel for our pay services.
Flipping to pay, on the broad pay side, we're transforming CBS All Access and relaunching it as Paramount+ in early 2021. And that's something I'm super excited about. Paramount+ is going to combine live sports, breaking news and a mountain of entertainment. And that entertainment includes a deep roster of exclusive originals and franchises for every audience. This is a cross-demographic product.
Now you're going to hear more about our content slate at our investor event in early '21. Now to date, we've talked about a few titles as a preview. Those include The Offer, which is a scripted limited series that tells the story behind the making of the Godfather, the Godfather trilogy, clearly, one of the most iconic film franchises of all time. Includes Kamp Koral, which is a new kid series from the SpongeBob SquarePants universe that we're spinning out that we will release after we drop the SpongeBob Movie: Sponge on the Run, which will be exclusive to Paramount+ in the United States.
Consistent with our history and legacy, we're going to do a new addition of Behind the Music, iconic music series that we think has a home for today. We're doing a new series from Yellowstone creator, Taylor Sheridan. As you know, Yellowstone was the biggest hit on cable this year. It is, of course, coming back next year for another season. And there's going to be a whole lot more that we're going to talk about at this event because this really is the tip of the iceberg or maybe the tip of the mountain.
Now those offerings will also complement our premium product, Showtime OTT. Showtime OTT continues to deliver robust subscriber growth, and that combination will really create an ecosystem that will take us to the next level in the streaming space. There's no question in my mind that our streaming strategy is working and that we have clear momentum, again, evidenced by strong growth in subscribers, monthly active users and revenues in 2020 and certainly in Q3, and you'll see in Q4. And we look forward to updating you and the investor community and others in greater detail at the streaming-focused investor event early next year.
John Hodulik
Great. What do you view -- maybe starting with the All Access and Paramount+ product. What do you see as the sort of main keys to success for that product? Is it content? I mean it's an increasingly crowded field. We just had the Discovery Plus announcement last week, and we're getting more news from Disney on Thursday. Are there other areas that you've been working on aside from content that you hope to leverage to drive growth in that -- with that service?
Bob Bakish
Yes, for sure. But let's start with the fact that the streaming market presents a large opportunity. And it's clearly a growing global opportunity. You look at it today, there's probably over 90 million homes in the U.S. that subscribe to at least one service and probably nearly 300 million SVOD subscriptions total. 2/3 of those 90 million households stream over 5 hours of content per week, and the percentage of households that subscribe to more than one SVOD service continues to increase. It's almost double what it was 5 years ago. Today, the average household subscribes to 3.1 SVOD services per home. And that's up from just over 2, 2 years ago.
So it's definitely a growing category. We see it continuing to grow. We do not believe it is a winner-takes-all market. We believe there's a place for a number of streaming services to be successful. And in that kind of setup, this is why we believe in a differentiated approach, complementary approach. And in fact, we do have differentiated and valuable assets.
You look at us on the traditional side, we do have the #1 broadcast network. We do have the #1 cable portfolio on multiple demographics. We have a huge library of Paramount films. We have live sports partnerships and news. We are going to have this strategy, and we already do. In fact, it spans free and pay, and we have momentum.
So to your question, is content key? Yes, absolutely, content is key. And that's both library content. It's living under brands, and our flagship brands have near universal recognition. And it's new content, including new originals. And ViacomCBS has among the most robust production capabilities in the world.
It is also brand. One of the things we're great believers in at ViacomCBS, because it makes a difference, is brand. And so you've seen us carve out very clear brand position for Pluto, which Pluto is a beacon of free. And likewise, Paramount+ is a pay brand. It's a premium brand, has a long legacy of association with people paying for great content. And so brand is important, and we're very focused on that, and you'll see us execute that in our campaigns.
The other thing I'd say is really important is distribution. ViacomCBS has always believed in ubiquitous distribution working with -- across the MVPD then satellite then vMVPD universes, obviously, our content licensing business. There's all kinds of people. And our streaming strategy has also been based on ubiquitous distribution. You looked at it. We do -- we have distribution through traditional operators. We have distribution through mobile operators. We have distribution through over-the-top players, whether that's channel stores or platforms. And we think that combination is really powerful. And by the way, we believe we benefit from the fact that we don't have a -- our own in-house channel that we got to go protect.
So it's content, it's brand, it's distribution. We're well positioned on all 3 of those, again, across both free and pay. And we believe that will lead to continued momentum and success in the streaming space.
John Hodulik
Got you. And let's talk about sports on the All Access, Paramount+ platform. I mean has that played a big role in driving growth? And do you expect it to take on -- I mean, obviously, you've got NFL, you've got Champions League soccer. Do you expect sports to be -- take on a bigger role as you grow that platform?
Bob Bakish
Well, I think it starts with -- when we think about Paramount+, what are we calling it? We're calling it live sports, breaking news and a mountain of entertainment. So sports, we believe, matter. Sports, we believe, are a differentiator relative to other offerings in the marketplace. And sports, we have seen, drive performance for our platforms, particularly CBS All Access.
So if you look at Q3 as an example, what drove Q3 for All Access? Well, two of the things that drove it were sports: UEFA and the return of the NFL. Some entertainment stuff mattered, too: reality, which was all Big Brother and Love Island; and the addition of ViacomCBS content and a new Star Track variant, Lower Decks. But clearly, sports mattered there. And if you look at the last two months, NFL has mattered. SEC has mattered. UEFA has continued to matter.
So we like that. You look into the March time frame of '21, you have the NCAAs. That has historically mattered. Unfortunately, it didn't matter in 2020 because we all know what happened with the NCAAs. But there's no question that there is a consumer base out there for sports, including in over-the-top. There's no question that sports can drive new subscribers as well as drive regular engagement. And so yes, it's an important part of the strategy. And again, I think we're early to that, and it's part of the differentiation we're pursuing.
John Hodulik
Do you think -- you mentioned March -- or the NCAA tournament. Do you think March Madness can be a driver of growth with the launch of Paramount+ given the timing?
Bob Bakish
Without question. Without question.
John Hodulik
Yes, makes sense.
Bob Bakish
And by the way, I'm happy they're going to go play in a -- looks like they're playing in a bubble in Indianapolis. They actually will -- because the pandemic will still be here. I mean we will have vaccinations, hopefully, but that's not going to be at scale. And so we're going to continue to be in a risk mitigation world. And that strategy was proven to work for the NBA. And so I think they're very smart, the NCAA, to be pursuing that strategy. And that increases the probability that, that product will be a real benefit for Paramount+ in the March time frame.
John Hodulik
Yes. All right. So last question on Paramount+ content. Earlier today, we had John Stankey speak and then after him, Jeff Shell from Universal. Obviously, Warner Bros. Making a lot of noise with their decision to release the 2021 slate on HBO Max at the same time as they release in theaters.
Just your thoughts on that strategic decision. Obviously, Paramount is, to a certain extent, in the same position. You've got great slate for next year. But a lot of questions around whether people will be back in those theaters and at the same time, launching a new high-profile streaming service where the equation really leans towards growth and the need for growth. How do you sort of balance all the different constituencies as you sort of release that slate next year?
Bob Bakish
Yes. So look, John, you're right. We have a great slate for '21. We have 12 films on the docket. That's led by 4 franchise films: Quiet Place, Part 2, which we had to pull at the last minute in '20 when the pandemic set in. It's a fantastic film; Top Gun: Maverick, which is the long-awaited sequel to the original. That film is amazing. We got Mission: Impossible 7, which actually finishing shooting up in Europe as we speak. And then we got a G.I. Joe film, Snake Eyes. So 4 of the 12 were really franchise films. So feeling very good about our product.
Obviously, we're living in what we call COVID rules, and theaters are fundamentally not open at scale. And so what we've been doing, we've been really employing a range of tactics. One is we've obviously delayed some films every -- or 3 of the 4 films I mentioned had public moving of dates as we wait for a better theatrical environment. At the same time, we've chosen to monetize some films with the streaming category. That was a way that we could sort of replicate longer-term economics in the current day and get a return on our investment.
We've also announced that one of our films, SpongeBob: Sponge on the Run, is going to be deployed against the Paramount+ rebrand. And after a short PVOD run, it's going to be exclusively on Paramount+ in the United States. And then as part of that, we'll also drop a new SpongeBob series.
So look, we're doing a range of these things. As we look at it and look to emerging from this COVID world, it's pretty clear that the theatrical windows will evolve and get shorter. I've said that for a while now, and I think that's certainly going to be the case. I think there's a role for theatrical. Particularly you think of a film like Top Gun, it would be a shame to watch it on a mobile phone because it really is an incredible spectacle.
But in parallel, some of these new monetization paths that we're seeing are going to be more common. People are going to use films to drive over-the-top products. People are going to look for alternate monetization, and that's going to be the norm. The good news is we have a substantial collection of IP. We have robust production capacity. In fact, we're taking our Paramount Players label and also deploying that against made-for-streamer titles. So I think the film category will continue to be strategic and valuable but certainly is evolving. And again, that's giving us more flexibility, more optionality as we go unlock value for Paramount and for ViacomCBS writ large.
John Hodulik
So do you think as part of this whole -- do you think the windowing that we've seen, I mean, which has been evolving, do you think coming out of the pandemic, there's lasting changes to windowing as we currently see it?
Bob Bakish
I think coming out of the pandemic, you have a more multifaceted film business, and you have shorter theatrical windows, which is different than saying I think the theatrical business goes away.
John Hodulik
Right.
Bob Bakish
Because again, it is appropriate, particularly for certain types of films. There are consumers who love going to the theater. There are people who don't as well. So -- but I think the net effect of it will be shorter theatrical windows and again, films being in other environments as well.
John Hodulik
Got it. On the last conference call, you announced that the company is going to be shutting down a number of the smaller D2C platforms, such as MTV Hits. Is Noggin and Comedy Central now included in that list of D2C labels that will be either wound down or combined with All Access? And how many subs are we talking in terms of the total number?
Bob Bakish
Yes. So as part of our transformation of All Access into Paramount+, we've obviously added our flagship brands. And so in our preview launch this summer, you saw MTV take up residence, Nickelodeon, BET, Comedy Central, Smithsonian. That's really a precursor to our Paramount+ launch early in '21.
And so as we do that, we have some small services, MTV Hits, as an example, Comedy Central service, which really don't make sense on a stand-alone basis. And so we're sunsetting those 2 services in the fourth quarter as we prepare to fully embed that content inside of Paramount+.
Noggin and BET are different. Noggin and BET both are very well-defined services that have very good subscriber momentum that we see as continuing to exist in the marketplace. We do believe that as they exist, there are some opportunities to bundle those products and create other kinds of consumer packages. But no, we are not going to -- we're not planning on sunsetting either BET Plus or Noggin.
John Hodulik
Right. And what about Showtime? I mean you had some positive things to say earlier in the session. Is that a property that will eventually be combined with Paramount+?
Bob Bakish
Yes. So I'm very pleased with the year Showtime is having in 2020. The brand really has very good momentum. It's over-the-top product. It's doing very well from a subscriber standpoint and an engagement standpoint for that matter. We've seen it benefit from hits like Billions and Homeland and Ray Donovan. And in fact, we just launched a new show the other day, Your Honor, and had a tremendous day for Showtime OTT.
And part of the reason all that's true and part of the reason we believe this premium tier is relevant is, first of all, the premium tier has always existed. Second of all, you look at the product on Showtime, it is more coastal. It is more R-rated. It is not as broad as we intend Paramount+ to be. And therefore, we think there is a role for it, broadly speaking, in the ecosystem. And by the way, we like Showtime's lane even more relative to the competition -- traditional competition, given what's going on in the category.
So I feel very good about Showtime. The team has really put together a great programming slate with more to come, obviously, in '21. And I think the Showtime OTT product has a continued good run ahead of it.
John Hodulik
Got you. Maybe let's shift to Pluto. Obviously, you guys were early in that move. A lot of transactions followed you, and other launches followed your acquisition of Pluto. Can you talk about how that property is positioned in the field? And how it's impacting the overall business? And what the reception has been to advertisers?
Bob Bakish
Yes. So look, I couldn't be happier with Pluto. It is the U.S. leader in free ad-supported streaming TV or FAST. When we acquired that company towards -- in '18, I remember talking to a whole bunch of people, and they're like, you will what? What is that? Free ad-supported, why would you do that? What about SVOD?
And the reality is we did it because we saw the category. We believe that free is a big category. And candidly, we were early to that. As you point out, others have followed us there. But we continue to have the #1 service. Why do we have the #1 service? Because look at our content offering, well over 100,000 hours of high-quality content available to U.S. viewers. And that's a mix of our own IP and third-party content.
And if you look at that through 2020, really 2019 was the year of adding Viacom content to Pluto. 2020 is more the year of adding CBS content to Pluto. And you look at two recent examples of us using our own IP on Pluto, an example of each, in November, we -- on the BET Pluto channel, we dedicated the entire month to the world of Tyler Perry, and we saw tremendous viewership growth throughout that month for that service.
And then last week, in a different version, we introduced a Showtime, we called it the Showtime Select channel on Pluto TV. And we added 70 hours of exclusive premium content to the service, including titles like Californication and Ray Donovan and The L Word as well as episode one samples of new shows like Your Honor and Love Fraud. And that's examples of Pluto TV's content leadership.
As you heard me earlier, I mean, we're really seeing audiences flock to the service. When we announced that we -- when we closed on Pluto's acquisition in early '19, because we did the deal at the end of '18, it had 12 million monthly active users. In Q3, on the domestic side, we grew monthly actives 57% year-on-year to 28.4 million MAUs. If you add into that international, at the end of Q3, we're around 36 million MAUs. And that's really a tripling off a double-digit millions base in under 2 years, which is extraordinary. And we're on track to reach over 30 million MAUs domestically and 40 million MAUs globally by the end of this month. So really, really happy with what we see in terms of consumer traction there.
I talked about distribution as being important to streaming, and Pluto is a great example of that. We have very ubiquitous distribution on Pluto, and we continue to build on it. We launched Pluto on Verizon mobile this summer. That was our first mobile deal for Pluto. And while that's -- while it's early, that's definitely working.
More recently, we did a really cool deal with Sony, where Pluto TV became a launch partner for PS5. And that was actually Pluto's first global distribution partner launch, where we launched in 20 European and Latin American territories in addition to the U.S. simultaneously.
So a lot going on in the distribution space. If you add in the recent deal we did with LG, because we do a lot in the connected TV space, we've actually added over 100 million incremental devices worldwide to the Pluto footprint. So see that as a nice incremental growth catalyst for the coming months.
So love what we're seeing with Pluto. Love that we were early to it. But just because we're early, we're not stepping back. We're leaning in, and we're going to progressively build that product out globally. And we are going to integrate it into our overall streaming strategy as we have our pay products benefit from it as well.
John Hodulik
Got you. Do you think these products -- the rise of the whole sort of FAST ecosystem -- and there's been a lot of activity since you guys, you said, since you guys bought Pluto, plus all the launches of all these new apps, these new D2C platforms. Do you think that puts incremental pressure on the linear ecosystem? Just your view on sort of cord cutting and whether or not just all the activity and all the content going up online impacts the pace of decline there.
Bob Bakish
If you look at Pluto and really the FAST category writ large, it's all library services. Certainly -- and Pluto has some news on it as well of a variety of different -- from a variety of different brands, including CBS and others. But it's really library-chronic. You don't get that exclusive original product that you get on broadcast, on cable and on pay streaming.
So what you see is it definitely appeals to a category of people that maybe only want a free service or want a free service as a complement to other things they're doing, including on-the-go. But look, the whole video consumption category is evolving.
We continue to believe in the pay linear space and the value of the bundle. And of course, we service that market, including with original product. We simultaneously have been building out, if you will, our broadband product, both in free and in pay. Because that allows us to serve incremental consumers or the same consumers with an additional offering. And we think that's the way to serve the widest array of consumers. We think that's the best use of our content assets. We think that's the best way to solve advertiser problems.
And look, we have leadership positions in linear. We have leadership position in FAST, and we're very quickly building an important position on the pay side. And I think that's what you got to think about. It's like this market is segmenting. You got to serve the whole thing, and that's what we're focused on.
John Hodulik
Got you. How should we think about content spend over -- actually, maybe just an update on your return to content production. How is that going? And when do you expect to get back to sort of pre-COVID levels?
Bob Bakish
Yes. So look, knock on wood, I'm very happy with where we are from a production standpoint. Obviously, earlier in '20, COVID had a material negative impact on production. And you really saw almost everything but news shutting down.
Today, we are almost fully back. If you look at CBS, we have all our series back in production and many of them -- or most of them actually at this point, back on air. On the cable side, we are also 95% back with all key franchises, whether that's The Challenge on MTV or Yellowstone coming to Paramount Network or others, that production is in a very good place. The Paramount+ originals are on track. And then Paramount itself is still transitioning back, but we'll be back to essentially full speed as we get to '21.
Importantly, we've done all this very focused on the safety of our crews and our talent, implementing a whole set of protocols, including things like A zones and B zones, et cetera, lots of testing. And again, we have figured out a way to produce compelling content. We altered some scripts. We've dealt with location.
But yes, the good news is we're back to production at scale. We have fresh content on air, including on our linear networks. That's great for consumers. That's great for advertisers. And we've certainly learned a lot through this process.
John Hodulik
Got you. So how should we think of the growth of your content spend over time? And then are there any -- obviously, I think it's not just ViacomCBS, but companies are sort of shifting the resources from linear to the growth areas in D2C. How should we think of that decision process within the company?
Bob Bakish
Yes, sure. So we expect to grow our overall content investment on a ViacomCBS basis in 2021. As we consider the magnitude and composition of our content investment, we do think about it relative to growth opportunities. Clearly, and we've talked about it today, streaming is a big opportunity. We will invest more there. The good news is we've got several years of experience and increasing momentum. So it's not like we're walking into that picture greenfield. We actually have metrics. We know it works. And so that can benefit us as we scale up.
I'd also point out that our domestic streaming and digital video revenue is growing north of 15% and will generate this $3 billion of domestic annual run rate revenue in Q4. Again, those are metrics you would invest in, and we're going to invest in them. Note that as we invest more in streaming, some of that investment is funded by growth. You have more revenue, you have more subscribers. And some of it is funded by incremental cost synergies.
It's also worth noting that unlike a pure-play streaming company, our content investment has broader leverage. Every dollar we spend on content can benefit a broader company ecosystem. That includes streaming, linear, film and adjacent businesses like consumer products. And that gives us an opportunity to allocate and sometimes reallocate spend across multiple channels. So we look at this really closely. We do a lot of work on content ROI. We think about trade-offs of where we're putting content. And I feel very good about our plan for '21 and the value we're going to create leveraging this incredible content asset, which spans both library and original production.
John Hodulik
Got you. And should -- from a content licensing standpoint, obviously, those have been even sort of growing in a couple of areas. The content licensing business over time has been growing. Given the pandemic and the increased focus on the D2C platforms, should we expect your content licensing to third parties to come down over time?
Bob Bakish
Yes. So a lot of conversation on this. Licensing is an important business. It is also one that is evolving for ViacomCBS as our business and priorities evolve. If you look at it big picture, again, we have very significant content assets and production capabilities. When we look at that asset, which includes our library, across Paramount, across CBS, across Viacom, media networks, et cetera, we don't believe it makes sense to keep all that content for only an owned-and-operated streaming service. We're very confident in our current plans for those services and that those plans will create a compelling, differentiated offering for a rapidly growing base of consumers of our owned and operated services.
And at the same time, we continue to see very strong demand from third parties. Why? Because we are proven hit makers and, therefore, we can reliably and profitably monetize that demand. And when we do it, remember, it's overwhelmingly a rental model. So the IP does return to our library overwhelmingly over time. And as we do it, it's not only for the financial expression, there is also strategic value to licensing. We can and do use third-party platforms to extend and expand audience. That can help us launch a new spin-out series. That can help us drive consumer products. That can help us launch a film variant. And so we do look at those third-party deals as also having strategic value beyond the monetary value.
That said, our strategy is clearly evolving in a more O&O-based direction. In fact, the decisions we made at Paramount+, even though we don't have it in the market, has already impacted our content licensing decisions. We do have a 2-year slate for Paramount+ on the original side. That slate leans heavily on franchise IP from across the company. And again, you'll hear more about that in our upcoming investor session, early '20 event -- early in '21.
In terms of the library, if you track our announcements, what you've seen is that we've increasingly moved to co-exclusive or nonexclusive models. We used to license content exclusively. We really don't do that on the library side anymore. And we do that so that Paramount+ will be able to benefit from the product in terms of driving customer engagement. This library product, not necessarily highly valuable for acquiring new subs, but it's definitely valuable for engagement. And so we need to ensure that we retain that benefit for our owned and operated.
We are extending the strategic use of product into the movie or film space as well. Now when we looked at it, a single title probably doesn't move the needle that much, certainly not a single library title. But what does is a compelling catalog of movies for the service. And that's something we already have and we'll continue to build on. Case in point, we added 190 titles to the preview launch, and we doubled film engagement overnight. And there are more titles to come as we rotate compelling product through Paramount+.
We also like the franchise angle there. We talked about The Offer, which is The Godfather. You can safely assume there is more of that type of thing to come. And another example, obviously, is the SpongeBob: Sponge on the Run. So we will be using that lever as well. And again, you'll hear more about that in early '21. What you should assume is that our content is highly valuable, and we will use it in a strategic way as we build a meaningful presence in the streaming space, although that doesn't mean we'll totally exit the content licensing business. Because, again, we have very deep resources here.
John Hodulik
Well, that's great, Bob. We're about out of time. Any closing comments you want to leave us with?
Bob Bakish
Yes. Look, thanks, John. I'd just end by saying how thrilled I am 1 year into the ViacomCBS merger. You see that in our focused execution. You see that in a positive trend line in our results on a range of metrics. You see that in the value we're unlocking in noncore asset disposition. And you see that in the very real momentum we have in streaming, both in the free space and the pay space.
And I'm super excited about what's to come in '21, as we ramp out of COVID, as we continue to gain momentum, broadly speaking, and as we demonstrate the value of what I feel is a truly differentiated strategy in streaming. There's a lot more value here to unlock, and as management, we are committed to delivering on that.
So exciting times ahead. John, thanks for having me. Stay well, everyone. Have a happy and safe holiday, and we'll see you in the new year.
John Hodulik
Sounds good. Thanks for the time today, Bob. Thanks, everyone, for joining.
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More Nick: Nickelodeon Upfront 2020 Roundup!
Originally published: Tuesday, September 15, 2020 at 17:39 BST.
H/T: Seeking Alpha; Additional source: TrekMovie.com.
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