Paramount, Charter ink new content distribution deal

Charter Communications (CHTR) — the parent company of cable provider Spectrum — has inked a new multi-year distribution agreement with Paramount Global (PARA) for its streaming services and broadcast channels.

Yahoo Finance Entertainment Reporter Alexandra Canal details the specifics of the broadcast deal and if this could sway Paramount's chief drivers, like its subscriber count, in any way.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video Transcript

Good news.

If you're a Spectrum cable TV customer.

Yesterday, Spectrum's parent company Charter Communications announced a new Multiyear distribution agreement for Paramount's full portfolio of linear cable networks CBS owned and operated broadcast stations and direct to consumer streaming services.

For more.

We bring in our own Ali Canal.

Hey Ali, what do we know?

Hey Red.

Yes, Paramount successfully avoiding a blackout of its channels on charter, which if you remember that's what happened with Disney last September.

So a big win there especially as these charter negotiations were viewed as a potential overhang for the company clouding some of those M and A prospects as Paramount seeks a buy out with Sky Dance media and possibly Apollo Global and Sony.

Now there are still some unknown surrounding this deal including what charter paid, but we do know that charter will continue to carry all of Paramount's networks including Showtime CBS and Paramount Plus.

And the subscribers to charter's largest tier along with its Spanish language tier will receive the ad supported versions of Paramount Plus and Bet Plus at no additional cost.

Now, Moff and Nathan and had a good point here that this agreement is a big deal since Paramount's TV media division is largely driven by the linear networks.

That's a big driver of EBITA, a big driver of revenue.

So having those channels on charter is important, there have been some expectations coming into these negotiations that some of Paramount's longer tail networks could get dropped.

So again, a win but have to see what the carriage rates ended up being and how the payments were ultimately allocated to determine the long term financial impact.

Here.

There might also be some cannibalization on the subscriber front, but we should see some movement on a bigger strategic action or a possible deal.

Now that this has been determined, you're seeing paramount shares up about 1% shortly after the opening bell.