News

CBS and Viacom Merge to Fight Cord Cutting

By Thoinot Arbeau / January 15, 2018

TV providers are in a tough spot after the increasing number of people who are turning their heads away from the traditional TV and towards streaming services. The CBS and Viacom merge are reportedly on the horizon, with both companies uniting their powers to survive.

It's no secret that cable companies must adapt to this growing trend, therefore making tough decisions to keep their viewership. If the reports are true, the merger talks have already started and are expected to be concluded in a few days.

CBS and Viacom Merge: Part 2

The two companies already had a merger back in 2010. However, they agreeably parted ways a little over a year ago, just to consider a tie-up again this year. Both companies are in the hands of a billionaire Sumner Redstone. Viacom is currently the 6th largest cable company in the world, with CBS being one of those five with bigger revenue.

Sumner Redstone

The merger will probably result in Viacom's content being brought into CBS streaming services like CBS All Access. Companies like Netflix are buying and creating a lot of original content in the past few years, which are attractive to new generations and cord-cutters. This new pattern in media consumers' behavior has left cable companies scratching their heads. To avoid more subscriber shrinking, mergers like this one are possibly their best move.

CBS is also considering a launch of their new sports streaming service. Additionally, they have big plans for the content expansion of the CBS All Access platform.

This merger is just one of many which are about to happen or already did. In 2014 Charter Communications bought out their big rival Time Warner Cable, while Lionsgate acquisition of Sratz was completed at the end of 2016. Few other mergers are rumored to happen as well.

Final Thoughts

Cable won't give up. But the landscape has changed, and the providers must change with it. Although cord cutting is on the rise, the companies are figuring out solutions in order to attract views. Sticking together and merging might be their best chance.

What are your thoughts on cable companies and their continuing fight against cord cutting? Will CBS and Viacom merge be fruitful for both companies? Leave us your thoughts on the subject in the comment section.



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