Viacom announced during its latest earnings call that it is launching its own ad-supported streaming service later this year.
Viacom CFO Wade Davis said that the service will feature thousands of hours worth of content across its large library.
"It's going to be rolled out in the United States, in terms of the amount of content that it's going to have, it's going to have tens of thousands of hours of content that cut across the library we have on a global basis," explained Davis.
The company didn't give out any details on how much the new streaming service would cost.
"You should assume that we are really putting all of Viacom's assets against this," Davis said.
Viacom owns popular cable TV channels such as BET, Comedy Central, MTV, Nickelodeon, Nick JR., and licenses content from other services such as DirecTV Now and Sling TV. In addition, the company expressed that the service will have content from Paramount, Paramount TV, but didn't go into more details.
Like Netflix, Viacom's streaming service will feature various categories, including comedy, family, kids, entertainment, and other types of content.
Viacom's Streaming Service Will Offer Various Types Of Content
Viacom may have been inspired by Disney's purchase of 21st Century Fox for $52 billion. The deal gave Disney most of the control of Hulu, as Disney owns 30 percent stake in the streaming service.
Multiple rumors suggest Viacom and CBS are in talks of a merger, but only time will tell if it will actually happen. If the two merged, it would be interesting to see how the streaming service would come together. It would allow Viacom and CBS more room for different negotiations with various companies.
Whether the deal happens or not, it's all about the company bringing in quality content.
"Their content has to really stand out so that it can be repurposed and resold to drive value. The real driver of value has to be exceptional content," said Jessica Reif, a media analyst at Bank of America Merrill Lynch.
Most of the streaming services available today are aimed at cord cutters. However, Viacom claims it's service will not be targeted towards that specific audience. The company is hoping the service will be used in addition to regular cable subscriptions.
In terms of the launch date, Viacom plans to launch its streaming service by September 2018. We're not sure how much the service will cost, but more details should be released in the next few months.
