Paramount+ Has Work To Do

Paramount+ has some work to do if it wants to be able to present the same kind of value that consumers get from other streaming options. The issue is with original programming and exclusive programming.

When it comes to this kind of comparison we are not comparing Paramount+ to cable replacement services like Sling TV or Hulu with Live TV. We are looking more at things like Netflix, Disney+ or Amazon Prime video. Even though Paramount+ has a different sort of niche than Disney+ they are both streaming services that concentrate their efforts on their cooperate brands. While YouTube TV is out to give people a totally different kind of experience. With numbers from Reelgood, we are getting a picture of how things stack up.

Paramount+ of course does offer CBS programming, which by its nature is original programming. Its exclusives are heavily weighted towards Star Trek. But the options overall are honestly kind of scant. The most glaring issue is with the movie catalog. Overall 41% of Paramount Plus’s TV-show catalog is exclusive to the service as is 23% of its movie catalog. But what you have to take in mind with each number is not just the percentages, but the size of the catalog. There are 36 original series planned for release this year, but of course, there will be new series released on competitors as well.

How does Paramount+ compare with other streaming services of its type?

Well, nothing compares to Disney, which had a gigantic film and TV library across multiple brands at launch. Unlike most services, Disney didn’t try to offer a multifaceted service then launch into original programming. It has been making movies for over 80 years and had a cable station cranking out content since the 1980s. When you add that together with Marvel and Star Wars content and National Geographic that is a lot of original and exclusive content. Disney Plus: 89% (total catalog: 311 TV shows/742 movies).

Netflix has some big guns too. Netflix: 83% of its content is either original or exclusive (total catalog: 2,069 TV shows/3,766 movies).

Whether consumers value the content or not is another question but it appears that consumers judge services on what they can get there vs everywhere else. A major issue for Paramount+ is that the main draw of the service is actually CBS content. And CBS content is all over the place. Viewers can watch it for free over the air. Viewers with cable can see it is live and on-demand. Three out of the four major cable replacement services offer CBS in their packages. The big services are able to offer things that could not be easily found somewhere else. Even the access to live events through CBS streaming is not a lot to hang a hat on.

The only part of the market where Paramount+ really stands out is for cord-cutters who cannot receive CBS signals where they live. If they also happen to like MTV and Comedy Central programming then more power to them. But in order to receive a full live stream of CBS users will have to pay $9.99. But for $4.99 viewers will get major CBS Sports events via the app. What they will not get would be locally produced or regional content like non-CBS-based college football.

The reason exclusive programming is so important in the streaming space is that premium services mean one more bill. Even if it’s $5.00 or $60.00 per year. Some consumers look at their cost for streaming services as one big bill. And if a service can’t give someone unique content that they will enjoy then the cost is not worth it no matter how small. How much would you have to pay to go to a restaurant that you didn’t like? This means its audience is still very narrow compared with others.

Despite the new branding and promise to release new movies to the service 45 days after they play in the theater Paramount+ still has a narrow appeal. Its target audience is Cord cutters who like CBS content, love Star Trek and sports like Tennis, Football, and Basketball who can not receive over-the-air signals or do not have another service that already streams CBS and on-demand programming. Trust me, I know people who fit that very profile. But is it in the many millions? are there 60 million people who must see Star Trek Strange New Worlds much less are there that many people who even know what it is? Because that is the key. How do you get people who already have CBS or MTV etc to say despite all of this I want to pay for a streaming service.

We will find out in about 6 months.