Holiday Streaming Wars: ViacomCBS, Spotify Impress In December, While Disney And Netflix Downloads Drop

Streaming video service leaders Netflix Inc NFLX and Walt Disney Co DIS are facing unprecedented competition in 2022, and the latest download numbers from BofA Securities suggest ViacomCBS Inc VIAC service Paramount+ is coming on strong.

The Numbers: On Tuesday, BofA analyst Jessica Reif Ehrlich said the December streaming service download numbers for Paramount+, Manchester United PLC MANU, Liberty Media Formula One FWONK and AT&T Inc. T subsidiary HBO were particularly impressive.

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“Paramount+ registered 2.5mn downloads (+256% Y/Y and +276% 4Q21/4Q20), as it likely benefited from the launch of 1883 (SI) and South Park: The Return of COVID,” Ehrlich said.

BofA reported ViacomCBS downloads were up 48% year-over-year in the fourth quarter, compared to a 6% decline in downloads for Netflix and a 38% drop in Disney service downloads. Overall, Netflix had 18.3 million downloads in December, Disney had 14.7 million downloads and ViacomCBS’s streaming services recorded just 7.4 million downloads.

“Having only launched Paramount+ early 2021, VIAC has displayed early signs of success in their pivot toward streaming and should exit FY21 with a $5bn streaming revenue run rate,” Ehrlich noted.

Music Apps: Music and podcast streaming platform Spotify Technology SA SPOT had the most December downloads of any streaming app with 27 million. Spotify’s downloads were up 32% in the fourth quarter and represented about two-thirds of total music app downloads, Ehrlich said.

Benzinga’s Take: Legacy media companies like ViacomCBS must adapt to the new streaming landscape or face a real risk of becoming obsolete in the quickly evolving battle for viewer attention. ViacomCBS is hosting an analyst event in February to discuss its streaming strategy, which could be a positive catalyst for the stock.

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