© Reuters. FILE PHOTO: ViacomCBS headquarters is pictured in New York, New York, U.S. December 5, 2019. REUTERS/Kate Munsch/File Photo
By Eva Mathews and Kenneth Li
(Reuters) -ViacomCBS Inc said on Thursday it added its highest global streaming subscribers ever in the second quarter and struck a multi-year deal with Comcast Corp (NASDAQ:)’s Sky to launch its Paramount+ streaming service in Europe.
The media company said it will expand its rebranded Paramount+ to the United Kingdom, Ireland, Italy, Germany, Switzerland and Austria in 2022, through Sky.
With people now stepping out seeking in-person entertainment and increased pressure on traditional pay-TV services, media companies across the industry are looking to bolster their streaming services to take on giants like Netflix (NASDAQ:) and Walt Disney (NYSE:) Co’s Disney+. Bundling services together through commercial partnerships is one option.
As the domestic market saturates, industry leaders are also looking outside the United States for growth.
Paramount+ is betting on live sports to attract subscribers. The company has amassed more than 42 million global streaming subscribers in total after adding 6.5 million new subscribers in the quarter, which includes additions from its other popular streaming services PlutoTV and Showtime OTT as well.
ViacomCBS (NASDAQ:) is looking to expand Paramount+ into 45 markets by the end of 2022.
“Engagement reached an all-time high in the quarter, driven by sci-fi thriller Infinite, SpongeBob SquarePants, the new iCarly series, NCIS and The SpongeBob Movie: Sponge on the Run,” the company said.
ViacomCBS’ streaming advertising revenue doubled during the quarter as live sporting events returned and businesses spent more on ads, with the company posting a 92% jump in overall streaming revenue.
The company expects streaming revenue to contribute to 15% of total revenue in 2021, ViacomCBS’ finance chief Naveen Chopra indicated on the earnings call.
Total revenue of $6.56 billion in the quarter ended June 30, beat analysts’ estimate of $6.48 billion, according to IBES data from Refinitiv.
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