LOS ANGELES, California, April 21 (Reuters) - In the

battle for viewers, Paramount Skydance ( PSKY ) is targeting the

smallest of screens - mobile phones.

A version of the Paramount+ app, now available to Apple

iPhone users, highlights short videos that users can quickly

scroll through, including sports highlights, CBS News segments,

UFC clips and trailers for movies and shows, according to two

people with knowledge of the initiative.

Paramount hopes users will develop the habit of opening the

app several times a day - as they already do with TikTok or

Instagram. That increased engagement could justify new features

such as real-time statistics during "UFC Fight Night" matches

and UFC Numbered Events, or interactive elements, the sources

said.

A Paramount spokesperson declined to comment.

Paramount still has significant ground to cover. In the

first quarter of this year, it accounted for 2% of global

streaming on apps, the last of the pack behind market leader

Netflix ( NFLX ) and rivals including HBO Max and Peacock, according to

Sensor Tower data. Combining HBO Max and Paramount+, following

the planned acquisition of Warner Bros Discovery ( WBD ), would

make it the fourth-largest streaming app.

Google's YouTube dwarfs Paramount+ in user

numbers, with 59 times as many users, according to mobile app

measurement firm Apptopia.

Industry executives say Paramount may seek to attract new

users by working with digital influencers or introducing micro

dramas - minute-long clips that together form a feature-length

story.

Rival streaming services have also borrowed features from

social media to expand their offerings.

Netflix ( NFLX ) is investing in video podcasts, including new shows

from "Saturday Night Live" alum Pete Davidson, NFL Hall of Famer

Michael Irvin and former NBC News anchor Brian Williams. Amazon

Prime Video has struck a deal with YouTube personality MrBeast -

the pseudonym of Jimmy Donaldson - for a reality competition

series "Beast Games."

"Everybody chases everybody," said one Hollywood talent

agent.

Another agent said Paramount has highlighted the studio's

relationship with TikTok, suggesting the potential for future

collaboration. Both Paramount and TikTok U.S. share a common

backer in Oracle billionaire co-founder Larry Ellison.

TikTok and Paramount say there is no agreement in place.

The work on the Paramount+ app is part of a broader overhaul

of its streaming services, Paramount+ and Pluto TV, which the

company outlined last week in presentations to advertisers.