Add Charter to the growing list of MVPDs offering free subscriptions to premium streaming services to stem the tide of cord-cutting.
Paramount Global and Charter Communications announced this week that they have inked a new carriage deal that will include a subscription to Paramount+’s ad-supported streaming service at no extra charge.
Later this year, Paramount+ Essential and BET+ Essential will be made available at no additional cost to all Spectrum TV Select packages and Mi Plan Latino customers through the Xumo Stream Box or any other Paramount+ supported device, and the Paramount+ with Showtime plan will continue to be received at no cost by all of Spectrum's Paramount+ with Showtime linear customers as well.
Spectrum customers that have Paramount+ Essential included will be offered the opportunity to upgrade to the ad-free version of Paramount+ with Showtime later this year. Charter says it will also make Paramount's direct-to-consumer products available for purchase to its millions of Internet-only customers.
The offer is part of a multi-year distribution agreement that will see Paramount's full portfolio of linear cable networks and CBS owned-and-operated broadcast stations carried on Charter’s Spectrum service, the nation’s largest, with more than 32 million subscribers in 41 states.
Both companies are eager to attract and retain new subscribers with Charter reporting a loss of 405,000 customers to its Spectrum video service in the first quarter of 2024 and Paramount, which is up for sale amid concerns (among others) that its streaming service is less able to compete in a crowded marketplace.
"From the outset, Paramount has embraced Charter's goal of evolving the video distribution model, and we have appreciated their willingness to collaborate on a solution that benefits our mutual customers and the video industry as a whole," said Tom Montemagno, Executive Vice President, Programming Acquisition for Charter, which operates the Spectrum brand of video and connectivity services. "Continuing to build on our new distribution framework with the addition of Paramount+ Essential and BET+ Essential, joining the Paramount+ with Showtime service for Paramount+ with Showtime linear customers and others like Disney+, ESPN+, ViX, Max for HBO customers, Tennis Channel Plus, and numerous regional sports networks' direct-to-consumer apps for customers of our regional sports networks, Spectrum continues to transform the cable bundle to become the best destination and value for video customers and we expect to continue to add more enhancements like this in the near future."
"We are very pleased to renew and expand our long-standing partnership with Charter to provide continued access to Paramount's leading portfolio of broadcast, entertainment, news and sports brands," said Ray Hopkins, President of U.S. Networks Distribution at Paramount. "This innovative deal celebrates our mutual commitment to deliver flexibility, choice and value for audiences everywhere, and we look forward to bringing even more of our fan-favorite programming to Spectrum customers through our direct-to-consumer streaming services for the first time."
Charter is just the latest in the recent trend of cable operators attempting to reduce churn by adding streaming subscriptions to cable TV services. Comcast announced last week that it will begin offering a “streaming bundle” of Peacock, Netflix and Apple TV for $15 a month to its existing Xfinity internet and TV customers.
