Paramount+ targets more ad revenue with Walmart bundle deal

Paramount's bundling deal with Walmart is a way for Paramount+ to grow its streaming advertising revenue at a time when the overall market for the service has slowed.

Why it matters: As streaming becomes more competitive at a time when inflation is biting into consumer spending, entertainment giants are going back to the bundle to goose their numbers — a tactic long championed by cable companies.

The latest: Starting next month, subscribers of Walmart+ — its subscription membership program — will get access to the ad-supported tier of Paramount+ for free, the companies announced.

• Paramount+ normally costs $4.99 a year with ads. Walmart+ will continue to cost subscribers $12.95 a month.
• The service has 43.3 million paid global subscribers, while Walmart+ has anywhere between 11.5 million and 32 million subscribers, according to various analyst estimates.

By the numbers: Paramount's streaming revenue — which includes services like PlutoTV and Showtime — is pacing ahead of last year by 67%, through the first six months of this year.

• That increase is largely driven by an uptick in subscriptions, which is up 84% through June. Ad revenue is up 39%.

Yes, but: Analysts have been cutting projections for advertising growth this year, which hammered media giants throughout this most recent earnings season.

Meanwhile: Paramount's losses have more than tripled to $900 million, thanks to spending on content and associated build-out costs.