Paramount Global combines two streaming services and announces cancellations.
A tough advertising sales environment and increased competition in streaming entertainment contributed to weak earnings for Paramount Global (PARA) – Get Free Report in November 2022.
That led to increased speculation about what the company would do with its Showtime brand and how it would integrate with Paramount Plus.
The two had already been brought together with a subscription bundle announced in August. Now Paramount has solidified its plans.
Rebranded as Paramount+ with Showtime, the two services are now offered as one streaming entity.
In a memo to staff, Paramount Global CEO Bob Bakish said the move is part of an overall alignment plan.
“This new combined offering demonstrates how we can leverage our entire collection of content to drive deeper connections with consumers and greater value for our distribution partners,” the memo said, according to Collider.
“This change will also drive stronger alignment across our domestic and international Paramount+ offerings, as international Paramount+ already includes Showtime content,” Bakish continued. “And, very importantly, this integration will unlock operational efficiencies and financial benefits across our broader portfolio.”
Layoffs and Cancellations Follow
The integration will involve budget tightening, including cancellations and workforce reduction.
Showtime will keep hits such as “Yellowjackets,” “Billions,” “Dexter,” and “The Chi.”
The shows “Three Women,” “Let the Right One In,” and “American Gigolo” were canceled on Jan. 30.
Chris McCarthy, who will lead the Showtime studio, issued a statement.
“To do this, we will divert investment away from areas that are underperforming and that account for less than 10% of our views,” McCarthy wrote, according to the Hollywood Reporter. “We have already begun conversations with our production partners about what content makes sense moving forward and which shows have franchise potential.”
Bakish hinted at coming layoffs, but said details will be forthcoming.
“While we are confident this is the right move for our company, our consumers, and our partners, we know this change brings uncertainty for the teams working on these brands and businesses,” Bakish wrote. “We are committed to being as transparent and thoughtful as possible throughout this process, and we expect to share additional details in the coming weeks.”
