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Comcast (CMCSA) Paramount JV SkyShowtime Set for Sep 20 Launch

Comcast CMCSA and Paramount Global joint venture, SkyShowtime, is set for launch on Sep 20 in the Nordic countries of Denmark, Finland, Norway and Sweden. SkyShowtime will replace Paramount+ in these countries.

SkyShowtime will be available for €6,99 in Finland, SEK 79 in Sweden, NOK 79 in Norway, and DKK 69 in Denmark. SkyShowtime will be available in the Nordics through distribution partners including Allente, RiksTV, Ruutu, Sappa, Strim, Telenor, Tele2, Telia, Telmore and YouSee from Nuuday Group, and TV 2 Play.

Later this year, in the fourth quarter, the streaming service will be launched in the Netherlands. Beginning the first quarter of 2023, SkyShowtime will be launched in countries such as Spain, Portugal, Andorra and Central & Eastern Europe.

SkyShowtime to Face Stiff Competition in Europe

The European video streaming market is expected to witness a CAGR of 14.02% between 2022 and 2027, reaching $26.07 billion by 2027, per data from Statista.

SkyShowtime, despite its solid content portfolio, is expected to face stiff competition in the space from the likes of Netflix NFLX, Amazon AMZN as well as local providers like NENT Group (Nordic), IPLA (Poland), Streamz (Belgium) and RTL’s Videoland, Viaplay.

Netflix’s popularity is driven by its focus on creating regional content. According to an Ampere Analysis study, cited by Deadline, Netflix currently produces almost 30% of the content available in Europe locally.

Comcast Corporation Price and Consensus

Comcast Corporation Price and Consensus
Comcast Corporation Price and Consensus

Comcast Corporation price-consensus-chart | Comcast Corporation Quote

For instance, in the United Kingdom, Netflix is set to hit the 30% mark with the addition of just 408 titles, or by removing 953 non-European titles.

Amazon is also producing more local content. It has exceeded the 30% mark in Germany, Switzerland and Italy, and is approximately at the 27% market in the United Kingdom.

Nevertheless, SkyShowtime promises solid content with thousands of hours of quality entertainment including the exclusive television premieres of first-run theatrical films from Paramount’s studios, Paramount Pictures and Universal Pictures.

Additionally, SkyShowtime will feature new premium scripted series, kids and family content as well as titles from the content library of Universal Pictures, Paramount Pictures, Nickelodeon, DreamWorks Animation, Paramount+, SHOWTIME, Sky Studios and Peacock.

What to Expect from Comcast Shares in 2022?

Comcast shares have underperformed its streaming peers Apple AAPL, Amazon, Disney and Paramount while outperforming Netflix.

Comcast shares are down 29% year to date compared with Apple’s, Amazon’s, Disney’s and Paramount’s decline of 12.3%, 23.5%, 28.2% and 23.4%, respectively. Netflix shares have declined 62.5% year to date.

Comcast is expected to benefit from the growing adoption of the Peacock streaming service. The company is benefiting from a growing wireless subscriber base. Comcast’s plan to transition to DOCSIS 4.0 is noteworthy in this regard. The technology will help this Zacks Rank #3 (Hold) company in expanding much faster and at a lower cost compared to competitors. Recovery in the park and movie business bodes well for Comcast’s profitability. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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