New, Smaller Bundles Rise With New DirecTV-Paramount Global Agreement
(Image courtesy of DirecTV)
The vaunted pay-TV bundle is being broken up.
DirecTV and Paramount Global said they reached a distribution agreement that enables consumers to subscribe to some of Paramount’s linear networks while not subscribing to all of them.
The large number of channels that subscribers got with a basic pay-TV subscription went from being a benefit to a liability as the monthly cost kept going up and up. Programmers insisted that cable and satellite companies insisted that in order to offer their most popular channels, distributors had to offer all of them.
Paying more and more for a longer list of channels that weren’t worth watching helped spur cord cutting and now, there’s more viewing of streaming programming than broadcast and cable combined.
Under the new agreement between DirecTV and Paramount, consumers have more choice. They can get CBS, but not MTV. Or Nickelodeon but not Comedy Central, something a programmer never would have allowed just two years ago.
The pact expands DirecTV’s offering of genre packs, smaller collections (or bundles) of channels geared to the kind of programming a viewer might be interested in. DirecTV had previously reached deals with Disney, Fox and Warner Bros. Discovery.
The CBS owned and operated stations stations are now included DirecTV’s $69.99 a month MySports genre pack, which will include all of the Sunday afternoon NFL games on CBS and Fox, NBC’s Sunday Night Football, Monday Night Football on ESPN (the new ESPN streaming services will be part of this package) and tons of Big Ten and Big 12 college football games.
For families with kids, DirecTV is now offering a $19.99 MyKids package that includes Paramount’s Nickelodeon networks along with Disney’s and WBD’s kids cable channels.
And a MyEntertainment pack includes a slew of popular cable networks plus Hulu, Disney + and HBO Max for $39.99.
DirecTV customers can subscribe to just the $19.99 kids package, or a larger collection of channels if they choose.
This new flexibility is designed to slow cord cutting and keep the cable channels alive, even as DirecTV shifts its own focus from satellite to streaming, where it offers DirecTV Stream and MyFree DirecTV.
“Paramount is one of the world’s most influential programmers, and its broad portfolio – including the CBS Network local stations – provides essential channels to many of our different Genre Packs,” said Rob Thun, chief content officer at DirecTV. “Together, these combined services create a strong foundation for a more dynamic TV future, one that gives DirecTV subscribers enhanced choice and control through our industry-leading genre-based options.”
In addition to the O&Os, DirecTV is looking to get the big stations owners to opt-in and allow DirecTV to deliver their CBS affiliates under the terms negotiated by CBS.
“DirecTV is a valued partner, and we are pleased to expand our long-standing relationship by featuring our wide array of leading programming in DIRECTV’s growing portfolio of Genre Packs,” said Ray Hopkins, president of Paramount U.S. Distribution. “Paramount is committed to exceptional content across broadcast, entertainment, news and sports, and we look forward to continuing to provide
additional opportunities for audiences to broadly access and enjoy our fan-favorite programming and brands.”
In a distribution business dominated by most-favored nation clauses, it’s likely that other cable and satellite distributors could follow in DirecTV’s footsteps if they want to.
Not surprisingly, the costliest bundle is the MySports bundle. DirecTV’s collection includes the 15 CBS O&Os, most of which are in NFL markets, plus ESPN, ESPN2, ACC Network, FS1, Golf Channel, SEC Network, TBS, TNT, truTV, and USA Network., along with a variety of league and collegiate conference networks. ESPN+ is included now, as will the new $29.99 ESPN streaming service being launched in the fall.
For sports fans, the MySports bundle look like it will provide more games than other packages, including Venu, the Disney-Fox-WBD streaming joint venture that never got off the ground.
The new MyKids genre pack includes four Nickelodeon channels, Disney channel, Disney Jr., Disney XD and Disney+; Cartoon Network, Boomerang and Discovery Family from WBD, plus BabyFirst TV, LooLooKIds TV and the upcoming MeTV Toons channels.
MyKids subscribers can add on a MyCinema mini-pack for an additional $9.99 a month that includes Paramount’s Smithsonian Channel in addition to Great America Family, Sony Movies and Turner Classic Movies.
“With MyKids, we’re bringing together the most trusted networks and beloved characters from the biggest names in kids’ entertainment, including full channel lineups from Disney and Nickelodeon, along with Disney+ —all in one place,” said Vince Torres, chief marketing officer at DirecTV. “And by introducing our most affordable package yet at $19.99 per month, we’re making it easier for more families to access the content they care about most. It’s about giving families more flexibility, more value, and the confidence that they’re getting the very best for their kids.”
The other genre packs offer by DirecTV are:
MyEntertainment ( $34.99 per month), which offers Paramount’s: BET, CMT, Comedy Central, MTV, MTV2, Paramount Network, Pop, TV Land, and VH! on top of 40 other channels includingA&E, Bravo, Discovery, E!, Food Network, FX, Freeform, FYI, HGTV, Lifetime, Oxygen, Syfy, The HISTORY Channel,TLC and Vice TV. My entertainment also includes Disney+, Hulu basic and HBO Max basic with Ads.
MyNews ( $39.99 per /month), which adds the CBS O&Os to cable networks such as CNN, CNBC, Fox News Channel, and MSNBC. Other local stations are includes where available.
MiEspañol ($34.99 per month), where Paramount’s Tr3s joins 60 channels including CNN En Español, Discovery En Español, Discovery Familia, ESPN Deportes, Fox Deportes, Hogar de HGTV, Nat Geo Mundo, Telemundo and, Univision. DirecTV plans to add ViX with ads to MiEspañol in the near future.
Financial details of the agreement were not disclosed. But it would seem like for both side, having some subscribers buy some of the channels is better losing them to streaming.
Also, with Paramount expected to eventually spin off its cable networks, like Comcast and WBD have already announced, it would be good to know which channels viewers are really willing to pay for.