Paramount Strikes New Deal with Charter, Expanding Cable and Streaming Access

Paramount has finalized a new deal with Charter Communications, ensuring continued availability of its channels—CBS, BET, MTV, Comedy Central, and the Paramount Network—on Spectrum TV for the coming years. This agreement is significant, given Charter’s status as one of the largest cable distributors in the U.S.

As part of this deal, Spectrum TV Select and Mi Plan Latino customers will receive free access to Paramount+ Essential and ad-supported BET+. Additionally, subscribers to the Paramount+ with SHOWTIME channel will maintain their on-demand access to Paramount+ with SHOWTIME at no extra cost.

Tom Montemagno, EVP of Programming Acquisition for Charter, highlighted Paramount’s collaborative approach: “From the outset, Paramount has embraced Charter’s goal of evolving the video distribution model, and we have appreciated their willingness to collaborate on a solution that benefits our mutual customers and the video industry as a whole.”

Montemagno further elaborated, “By integrating Paramount+ Essential and BET+ Essential alongside the Paramount+ with SHOWTIME service, and with additions like Disney+, ESPN+, ViX, Max for HBO customers, and Tennis Channel Plus, Spectrum continues to transform the cable bundle. This strategy enhances the value for video customers, and we anticipate more such enhancements in the near future.”

The Take

This strategic deal supports Paramount’s broader business objectives amid ongoing discussions about its future, including merger and acquisition opportunities with Sony and Apollo. Initially, Sony and Apollo proposed a $26 billion all-cash takeover of Paramount, but regulatory concerns redirected their focus to Paramount’s TV and movie studios and its Hollywood real estate.

If Sony and Apollo finalize the acquisition, they might divest from Paramount’s channels and streaming services. However, the new deal with Spectrum underscores the enduring appeal and market reach of Paramount’s channels, making them attractive to potential buyers or valuable assets if Paramount continues independently. The agreement ensures a steady audience and advertising revenue from Spectrum’s substantial customer base, positioning Paramount favorably in the evolving media landscape where traditional cable and streaming offerings are increasingly intertwined.

Furthermore, this arrangement exemplifies a win for both cable companies and direct-to-consumer streaming services, highlighting how strategic partnerships can mutually enhance value across distribution platforms. Providing free access to Paramount-owned streaming services, like Paramount+ Essential and ad-supported BET+, aligns with Spectrum’s previous negotiations with Disney in 2023, which secured free access to ESPN+ and Disney+ for its customers. This practice benefits consumers by preventing double charges for the same content and sets a precedent in the industry for structuring content distribution deals, ensuring that streaming services remain accessible without additional consumer costs.


Get in Touch

© 2024 43Twenty LLC. All Rights Reserved.