CBS Corp.'s long-anticipated stand-alone streaming service for
its pay-TV channel Showtime will debut this summer with Apple Inc.
on board as its launch partner.
Showtime's streaming service will launch on Apple devices on
July 12, the day new seasons of the network's popular dramas "Ray
Donovan" and "Masters of Sex" are scheduled to premiere. CBS is in
talks with other distributors as well and said it expects to unveil
additional deals in the future.
The price of the streaming service will be $10.99 a month, which
is cheaper than the average rate some distributors including
satellite broadcasters DirecTV and Dish Network Corp. currently
charge for the Showtime TV channel. On the other hand, Time Warner
Cable currently offers Showtime for $9.99 a month.
CBS Corp. Chief Executive Leslie Moonves said Showtime's
stand-alone digital effort isn't "in anyway trying to undercut" the
company's traditional pay TV partners. The prices pay-TV
distributors charge for Showtime, he said, "are all over the
place."
DirecTV, Dish and Time Warner Cable all declined to comment on
Showtime.
The Showtime pact follows a similar agreement that Time Warner
Inc.'s HBO reached with Apple. The HBO Now service costs $14.99 a
month, which is the average price pay-TV distributors charge. Since
the Apple announcement, HBO also has reached an agreement with
Cablevision Systems Corp.
For Showtime and HBO, entering into the stand-alone business is
a tricky dance. Neither wants to alienate their traditional
distribution partners who account for the majority of their
subscribers and revenue. At the same time, there is recognition
that future generations are embracing online platforms and the
ability to have more choice in what channels they receive.
Both HBO and Showtime have said their primary targets are
consumers who only have a broadband provider that might want
Showtime but don't want to have to sign up for a large package of
other channels to subscribe.
"Before you get to Showtime, you've already had to spend
$110-$120," Mr. Moonves said.
In choosing to partner with Apple, Mr. Moonves said he was
impressed with preliminary numbers he'd seen on how HBO Now was
doing on that platform. "Apple has basically succeeded on
everything they've done," he said.
CBS and other content providers also are talking with Apple
about the Silicon Valley giant's plans to launch its own online
pay-TV platform.
"We've had conversations with them," Mr. Moonves said, but he
doesn't know how close Apple is to unveiling a service.
An Apple spokesperson declined to comment.
Write to Joe Flint at joe.flint@wsj.com
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