Media Stocks Surge As Giants Team Up To Offer Bundled Services
Media stocks, more specifically Apple Inc (AAPL:US) and Paramount Global Inc (PARA:US) opened in December with a price increase. The contributing factor was a December 01 announcement that the companies were reportedly in early discussions about offering a bundled streaming service.
Paramount stock rose by 9.81% that same day while Apple stock closed at $191.24 on December 01. Simultaneously, the bullish news also bounced off other media stocks. Warner Bros Discover Inc (WBD:US) closed 8.42% higher the same day. Yet, this year's overall results for Paramount revealed a 6% drop, in contrast to Warner Bros. Discovery's 19% rise, supported by a profit from streaming in the third quarter.
The bundling of Apple TV+ and Paramount+ is viewed as advantageous due to their distinct content approaches. Apple TV+ concentrates on unique and premium content, whereas Paramount+ provides a wide variety of popular television shows and movies.
As it turns out, this news is not exactly a novel idea as much talk has already been in the industry about bundling rival streaming services together.
The Wall Street Journal previously reported on November 9 that streaming giants Netflix (NFLX:US) and Max have partnered with Verizon (VZ:US) to offer a bundled service for $10 monthly, a price lower than the usual $17 combined cost. Liberty Media's Chairman and a member of the Warner Bros. Discovery board, John Malone, has frequently spoken about potential formats for streaming bundles. Furthermore, Disney (DIS:US) is providing a package that includes Hulu, Disney+, and ESPN+.
Keeping in line with these price surges, two Congress members previously purchased AAPL stock in October 2023. Rep. Josh Gottheimer bought up to $15,000 worth of Apple stock on 30 Oct. Rep. Ro Khanna’s child bought almost $15,000 worth of AAPL shares on Oct 02, while his spouse sold as much as $50,000 later on Oct 10. The Californian representative sold up to $15,000 worth of PARA stock on August 29. Elsewhere, Sen. Tommy Tuberville bought between $50,000 and $100,000 worth on September 18.
Apple and Paramount have not responded to requests for comments on these discussions. Regardless, these developments underscore the growing significance of strategic partnerships in the competitive streaming market.
