In a bid to combat market saturation and offer discounted rates to customers, Paramount Global is reportedly in discussions with other media companies to merge its streaming platform with another entity. This news comes amidst increasing competition in the streaming industry and a need for consolidation to effectively compete with streaming leader Netflix.

According to sources familiar with the matter, Paramount Global's leadership is engaged in talks with various media and tech companies to explore the possibility of merging its Paramount+ streaming service with another platform, potentially leading to a co-owned venture. One of the companies expressing interest in partnering with Paramount is Warner Bros Discovery, which aims to merge its Max and Paramount+ services.

While neither Paramount nor Warner Bros commented on the report, several media executives privately shared their belief that Comcast's Peacock, Paramount+, Max, and Walt Disney may eventually collaborate and bring their programming together within a single application. This move would help alleviate customer confusion and present a stronger competition against the dominant player, Netflix.

The report also suggests that the structure of the hypothetical joint venture between Paramount and Warner Bros has not been extensively discussed. However, given the differing streaming assets and financial standings, it is unlikely that ownership would be split evenly.

Paramount's streaming service, Paramount+, currently boasts more than 71 million subscribers, which is significantly lower than Netflix's 269.60 million and Warner Bros' 99.6 million. The company has been actively strategizing to transform its streaming business, reduce costs, and divest some assets to alleviate its debt burden.

These talks come on the heels of controlling shareholder Shari Redstone's decision to end deal negotiations with Skydance Media for Paramount Global. With the streaming industry evolving rapidly, Paramount Global seeks to solidify its presence and increase its competitiveness by exploring potential partnerships and consolidation.

As the streaming landscape becomes more crowded, media companies are recognizing the need to combine forces to attract customers and provide a wider array of content offerings. The outcome of these discussions and potential mergers will shape the future of the streaming industry and determine which players can effectively challenge Netflix's dominance.