Paramount Global
PARA
recently entered into an agreement with
Avid Technology
AVID
. Per the agreement, Avid’s managed cloud solutions will be available to Paramount’s creative teams across the globe for video content production.
According to the agreement, Paramount’s production teams in Asia-Pacific, Europe and the United States would be able to create content on the open Avid MediaCentral production platform, Avid Media Composer software and the Avid NEXIS media storage.
Avid’s managed platform, which is delivered on
Microsoft
’s
MSFT
Azure, supports content management platform, shared storage and video editing tools.
Avid had entered into a strategic alliance with Microsoft in 2017, which was renewed in May 2020. As a part of the renewed five-year agreement, Avid will continue to develop and deploy its cloud-based solutions on Microsoft Azure.
Paramount began its journey with Avid in 2020 with the onset of COVID-19. As part of the alliance, Paramount created an open environment using Avid’s cloud offerings to ensure collaboration between users of Avid and third-party editing tools. It was also followed by establishing remote editing workflows to maintain business continuity amid the pandemic.
The collaboration will help reshape operations, innovation and creative workflows via a cloud production ecosystem, which will ultimately help accelerate content availability. The alliance empowers Paramount’s creative and production teams across the globe to create and deliver quality content easily over the cloud. Thus, Paramount’s partnership with Avid is in line with the former’s focus on delivering diverse content to global consumers.
The robust top-line growth of the company can be attributed to subscriber growth and increased consumption on Paramount+ fueled by a diverse global content portfolio.
Paramount Global’s Paramount+ is witnessing new subscriber growth driven by an expanding content portfolio. Paramount+ hosts a portfolio of more than 2,500 movies and 30,000 TV episodes, including content on popular franchises such as
Star Trek
and
SpongeBob
.
Paramount Global Price and Consensus
Paramount Global price-consensus-chart
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Paramount Global Quote
Focus on Footprint Expansion Drives Growth
Over the last few years, the company is focused on expanding its global footprint. To cater to its goal, Paramount Global has been steadily expanding its partner base and is undertaking accretive acquisitions to boost the top line.
In January 2021, the company renewed its CBS Television Network affiliation agreement with
Nexstar
’s
NXST
wholly-owned subsidiary Nexstar Media and its operating partners in 39 markets across the country. The combined reach of the 39 markets is 14% of the U.S.-based audience, serving 17.4 million television households.
Per the agreement, Nexstar’s CBS affiliates will continue to be available locally to Paramount+ subscribers and widely-distributed Virtual Multichannel Video Programming Distributor (vMVPD) platforms.
The affiliation agreement with Nexstar Media will enable Paramount Global to drive greater efficiency and expand its footprint to connect with more people.
Around the same time, Paramount also entered into a distribution agreement with Comcast division Comcast Cable, per which the former’s entire portfolio of channels will be available to the latter’s Xfinity customers.
Comcast’s Xfinity customers, through their X1 and Flex devices, can now avail CBS Television Network, BET, CBS Sports Network, Comedy Central, MTV, Nickelodeon, Paramount Network, Pop TV, Smithsonian Channel, SHOWTIME, and streaming services Paramount+, Pluto TV and SHOWTIME OTT.
In 2021, Paramount Global division ViacomCBS Networks International (VCNI) also acquired a majority stake in Fox TeleColombia and Estudios TeleMexico from The Walt Disney Company
The acquisition, which provides VCNI with complete access to the studio operations of FoxColombia and Estudios TeleMexico in Mexico and Colombia, will improve Paramount Global’s’ capabilities to produce Spanish-language content.
It will additionally provide Paramount Global with complete access to FoxColombia’s and Estudio TeleMexico’s robust content portfolio. The content will boost Paramount Global’s streaming platforms Paramount+ and Pluto TV, along with its linear networks, globally.
Currently, Paramount Global carries a Zacks Rank #3 (Hold).
Paramount Global shares are up 20.8% in the past year compared with the Zacks
Media Conglomerates
industry’s return of 11.4% and the
Consumer Discretionary
sector’s decline of 4.5%.
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.
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