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CBS Corporation (NYSE:CBS) recently entered into a strategic agreement with Canvs, a New York based start-up that has expertise in emotion measurement.
Canvs uses artificial intelligence (AI) and machine learning technologies to help its clients understand human emotions and convert them into business value. The company can provide detailed information about factors like why customers choose certain brands, what motivates them to engage in repeat buying practices and how they behave when they are dissatisfied with a product/brand.
To unlock the power of customer insights from its surveys, CBS will integrate Canvs Surveys to automate the process of handling open-ended responses. Notably, Canvs Surveys can tackle complicated and time-taking tasks related to open-ended surveys by analyzing bulk data.
The analysis is likely to be error free and will give CBS scope to ask detailed questions and quickly get insights about underlying factors like story line, shows and characters. Notably, the company’s research and analytics center, CBS Television City Research Center, currently conducts more than 6,000 individual surveys during pilot-testing alone.
CBS Corporation Revenue (TTM)
CBS Corporation Revenue (TTM) | CBS Corporation Quote
Partnership to Boost Premium Content Offerings & User Growth
CBS with the help of Canvs tools is expected to boost its premium content offerings. The ability to differentiate its content is likely to attract subscribers to both its streaming and linear platforms.
Notably, CBS has one of the largest entertainment content libraries and its TV network, CBS Television Network, continues to be the number one owing to its content strength.
Demand for CBS premium content is clearly evident from the fact that its direct-to-consumer streaming services, CBS All Access and Showtime OTT, achieved subscriber base target of 8 million in 2018, two years ahead of original schedule.
Additionally, the company expects both the platforms to have 25 million subscribers by 2022 from its earlier guidance of 16 million. Growth in subscriber base is expected to attract ad dollars from these ad supported platforms, which is a positive.
Moreover, increase in demand for CBS content is expected to increase the value of its licensing partnerships to over-the-top (OTT) providers. The company has licensed Star Trek: Discovery to Netflix’s (NASDAQ:NFLX) international platforms and is producing a series, Swagger, for Apple’s (NASDAQ:AAPL) upcoming streaming service in April or early May.
Additionally, Disney (NYSE:DIS) is buying content from CBS TV Studios for its upcoming streaming service, Disney+, to cater to consumer demand.
These factors are expected to drive top-line growth for CBS, which currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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