VIACA - Now all in on streaming ViacomCBS must balance spending with legacy TV

ViacomCBS ([[VIAC]], [[VIACA]]) is facing a problem similar to that of the media conglomerates who have charged into streaming before it: how to nurture a fledgling direct-to-consumer business without neglecting a much larger and still very profitable traditional television operation. That will mean some delicate investment choices, with recently hired chief financial officer Naveen Chopra leading the decision-making. The company made $2.56B from streaming in 2020 (up 49% from 2019), largely from its legacy CBS All Access streaming (live TV and local station-focused) along with its Showtime over-the-top operation. Now with Paramount Plus freshly launched as of Thursday, investment in streaming content will rise from about $1B today to $5B or more by the end of 2024. And that won't necessarily all be new cash needed: “We don’t expect all of this to be incremental,” Chopra tells the WSJ, suggesting that there will be "remixing" of content from the TV

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Now all in on streaming, ViacomCBS must balance spending with legacy TV