key term - Viacom and CBS Merger

Definition

The Viacom and CBS merger refers to the consolidation of two major media companies, Viacom Inc. and CBS Corporation, which officially reunited in December 2019 after being separated for over a decade. This merger aimed to create a more robust media conglomerate that could compete effectively in the rapidly evolving entertainment landscape, combining assets like cable networks, streaming services, and film studios under one umbrella.

5 Must Know Facts For Your Next Test

1. The merger created a combined entity known as ViacomCBS, which later rebranded as Paramount Global.
2. One of the main motivations for the merger was to enhance the company's ability to compete with streaming giants like Netflix and Disney+.
3. ViacomCBS owns popular networks such as CBS, MTV, Nickelodeon, and Showtime, as well as Paramount Pictures.
4. The merger was initially announced in August 2019 and finalized in December 2019 after receiving regulatory approval.
5. Post-merger, the company focused on integrating its content across multiple platforms, aiming to leverage its extensive library and broaden its audience reach.

Review Questions

• How does the Viacom and CBS merger illustrate the trend towards consolidation in the media industry?
  • The Viacom and CBS merger exemplifies the trend of consolidation in the media industry as it combines two significant players into one powerful entity. This consolidation allows for greater resource allocation and synergy between their various platforms, enabling them to pool their assets for better competition against larger streaming services. The merger also reflects a response to changing viewer habits and the need for traditional networks to adapt in an increasingly digital world.
• What are some of the challenges ViacomCBS faces in competing with major streaming services following the merger?
  • After the merger, ViacomCBS faces several challenges in competing with major streaming services like Netflix and Disney+. These include adapting to rapid technological changes, shifting consumer preferences towards on-demand content, and the need to continually produce high-quality original programming that attracts subscribers. Furthermore, they must effectively integrate their diverse range of content while finding ways to monetize it in an era where free ad-supported options are becoming increasingly popular.
• Evaluate the potential long-term impacts of the Viacom and CBS merger on media ownership and diversity in programming.
  • The long-term impacts of the Viacom and CBS merger could significantly influence media ownership dynamics and programming diversity. As large media conglomerates continue to merge, there is a risk of reducing competition and limiting diversity in programming choices available to consumers. This consolidation may lead to a homogenization of content where fewer voices are represented, potentially diminishing cultural diversity. However, if managed well, it could also allow for innovative collaborations that enhance programming quality by pooling resources from both companies' extensive libraries.

Related terms

Media Conglomerate: A corporation that owns multiple companies across various media sectors, including television, film, radio, publishing, and digital platforms.

Streaming Services: Platforms that deliver content such as movies and TV shows over the internet, allowing users to access media on-demand rather than through traditional broadcast or cable.

Content Creation: The process of producing media content for distribution across various platforms, including television shows, films, and online videos.