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Media stocks jumped Friday following a Wall Street Journal report that Apple and Paramount Global are in early-stage talks to supply a bundle of the 2 company’s streaming platforms.
The businesses have talked about bundling Apple TV+ and Paramount+ in an offering that may cost lower than subscribing to the 2 individually, The Wall Street Journal reported Friday.
Shares of Paramount closed up nearly 10% Friday, while Warner Bros. Discovery, which owns streaming service Max, closed up greater than 8%. Paramount is down about 6% on the yr, while Warner Bros. Discovery, which reported a streaming profit within the third quarter, is up about 19%.
Apple and Paramount didn’t immediately reply to CNBC’s request for comment.
Paramount+ and Apple TV+ could possibly be a great match for a bundle given their differing content strategies. Apple TV+ is understood to supply a sturdy library of exclusive and prestige content, while Paramount+ boasts a bigger back-catalog of recognizable TV shows and films.
The report comes as talk heats up within the media industry about bundling rival streaming services together.
Streaming leader Netflix and Max entered into an agreement with Verizon to bundle the 2 services at a reported $10 a month, lower than the $17 the mix would normally cost, the Journal previously reported. Liberty Media Chairman and Warner Bros. Discovery board member John Malone has often discussed what streaming bundles could appear to be. Disney currently offers a bundle of Hulu, Disney+ and ESPN+.
The trend has prolonged beyond streaming. Following a dispute earlier this yr, Disney and Charter entered into an agreement where some Spectrum customers would gain access to the ad-supported Disney+ plan, a move some experts predict could change into more common.
An Apple partnership could possibly be a robust opportunity to assist Paramount pivot within the rapidly changing media environment. Paramount’s controlling shareholder Shari Redstone has been open to creating big deals, CNBC has reported, as the corporate suffers from declining revenue and streaming losses.
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