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Does ViacomCBS Have a Streaming Problem? Leaning on Ad-Supported Streaming Could be Their Saving Grace, Says SteelHouse CEO
Cracking into the streaming bundle is becoming increasingly hard, but why? SteelHouse CEO Mark Douglas weighs in on FOX Business about ViacomCBS's latest stock plunge, Trump's latest move to get back on social media, and more.
Written by Melissa Yap
What Caused ViacomCBS’ Stocks to Take a Tumble?
“I think the market is overreacting,” said Mark Douglas, CEO of SteelHouse, from his recent appearance on FOX Business. The streaming market isn’t only the big four (i.e. Netflix, Hulu, Amazon, Disney+) – people are forgetting that there is a lot of opportunity in ad-supported programming. Since ViacomCBS have healthy ad breaks and great content, Douglas predicts that they’ll do well on ad-supported streaming, because “cracking into that streaming bundle of the four big players is becoming increasingly hard.”
As for its recent stock nosedive, there’s rumours brewing behind the scenes on how ViacomCBS will rebound from here. “I think there’s also concern that they’ll overspend to try and catch up…but the thing to remember is that every household is going to have three to four streaming subscriptions. ViacomCBS is going to have to push them out to get the streaming subscriptions, and if you try and spend billions to do that, you’re just wasting money.” The best solution around this would be for them to stop trying and compete against the streaming leaders, and “focus more on what they’re good at, which is selling ads against their programming – and they should see the stock come back.”
Will people add streaming subscriptions to their cart to have more access to different content streams – and open the floodgates for companies like ViacomCBS to compete? Not likely. “CBS will struggle to crack into subscription based streaming, but I don’t think this means they won’t be a winner by just focusing on ads.”
President Trump’s Move to Get Back on Social Media (And Launch a New Network?)
The other big news of the day? Former President Trump was in talks with app makers to return to social media. Douglas thinks this is definitely a possibility – with a caveat. “The biggest thing is that most of Trump’s reach came from the media repeating what he said on Twitter, not the tweets themselves.” This begs the question about whether this will remain the same, even if he has his own platform…even if he has his own platform, are they (CNN, MSNBC, FOX) going to repeat his words off his platform? That’s a big open question.” If ratings is anything to go by, Douglas predicts that this could be a possibility, since these networks rely on his words to boost their ratings.