Unless something fairly major happens in the next few hours, entertainment giant Paramount Global (PARA) will be ditching the Nielsen ratings system. That is causing a seismic shift in the entertainment industry, but, for now, it is doing Paramount very few favors. Paramount shares are down more than 2% in Monday afternoon’s trading.
If a deal with Nielsen falls through, Paramount has declared that it will move to VideoAmp as its new preferred ratings partner. That is making a lot of parties, from advertisers to other platforms, wonder if there is life after Nielsen. Given that Nielsen is “…insisting on substantial price increases” with Paramount, that may be reason enough for not just Paramount, but other networks, to part ways with Nielsen.
However, there is one major problem with the plan: upfront deals. Paramount has already executed several deals for new material, but many of these deals were predicated on certain Nielsen ratings. And that may not sit well with advertisers promised a certain reach according to what was essentially the standard in the field. The issue may prove a fait accompli, though, as Paramount has been reportedly handing out VideoAmp data for the last four months.
Welcome to Thailand
Meanwhile, Paramount is actively working to expand its reach with a new platform for Paramount+, this time in Thailand. Paramount is working with MONO, a Thai streaming service, to establish a Paramount+ brand extension on Monomax. MONO’s streaming platform will launch this November.
It is part of a larger initiative to get Paramount+ into more countries, expanding its overall reach and making it an attractive option no matter who does its data collection and recording. The global expansion of Paramount+ depends on one of two strategies: either standalone products, like the app itself, or as part of a co-branding deal like with MONO, or with Cosmote in Greece.
Is Paramount Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on PARA stock based on four Buy, eight Hold and six Sell ratings assigned in the past three months, as indicated by the graphic below. After a 14.66% loss in its share price over the past year, the average PARA price target of $12.43 implies 17.21% upside potential.
