Media stocks experienced a significant uptick on Friday in response to a The Wall Street Journal report suggesting that Apple and Paramount Global are engaged in preliminary discussions to provide a bundled package featuring their respective streaming services.

According to the report, there have been discussions about combining Apple TV+ and Paramount+ in a bundled offering that would be more cost effective than subscribing to the two services separately.

(Photo : CHRIS DELMAS/AFP via Getty Images)
The Paramount+ logo is seen inside the convention center during San Diego Comic-Con International in San Diego, California, on July 22, 2023.

Media Stocks Rise After Apple, Paramount Streaming Bundle Report

CNBC reported that Paramount's stock rose by nearly 10% on Friday, and Warner Bros. Discovery, the owner of the Max streaming service, saw an increase of over 8%. 

Paramount's year-to-date performance shows a decline of approximately 6%, while Warner Bros. Discovery, reporting a streaming profit in the third quarter, has witnessed an increase of around 19%.

The potential bundling of Paramount+ and Apple TV+ appears promising due to the distinct content strategies of the two services. Apple TV+ is recognized for its extensive library of exclusive content, while Paramount+ has a substantial back catalog featuring well-known TV shows and movies.

READ NEXT: Nelson Peltz vs. Disney: Billionaire Activist Investor Seeks Multiple Board Seats as He Launches New Proxy Battle

Emerging Trend of Bundling Streaming Services

The practice of bundling streaming services is emerging as a significant trend in the industry, with discussions on this strategy gaining traction.

Major players in the streaming sector, Netflix and Max, joined forces with Verizon to package their services at a reportedly reduced rate of $10 per month, providing a more economical option compared to the standard $17 combined subscription fee. This bundling trend is not limited to streaming services alone.

In a resolution following a dispute earlier this year, Disney and Charter reached an agreement wherein specific Spectrum customers will gain access to the ad-supported Disney+ plan. Some experts anticipate that this move will become more prevalent in the industry. 

READ MORE: Unifying the Digital Landscape: Cardware's End-to-End Platform for Modern Content Management