A difficult advertising sales environment and increased competition in streaming entertainment contributed to weak earnings for Paramount Global. (FOR) – Get a free report in November 2022.
That led to further speculation about what the company would do with its Showtime brand and how it would integrate with Paramount Plus.
The two had already teamed up with a subscription package announced in August. Now Paramount has solidified its plans.
Rebranded as Paramount+ with Showtime, the two services are now offered as a single 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 between our Paramount+ domestic and international offerings, as Paramount+ international already includes content from Showtime,” Bakish continued. “And most importantly, this integration will unlock operational efficiencies and financial benefits across our broader portfolio.”
Layoffs and cancellations Follow
The integration will imply a budgetary adjustment, including cancellations and reduction of personnel.
Showtime will keep hits like “Yellowjackets,” “Billions,” “Dexter” and “The Chi.”
The shows “Three Women”, “Let the Right One In” and “American Gigolo” were canceled on January 30.
Chris McCarthy, who will head 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 report. hollywood reporter. “We have already begun discussions with our production partners about what content makes sense going forward and what shows have franchise potential.”
Bakish hinted at the upcoming layoffs, but said details would be forthcoming.
“While we are confident that this is the right move for our company, our consumers and our partners, we know that this change creates uncertainty for the teams working on these brands and businesses,” Bakish said. wrote. “We are committed to being as transparent and thoughtful as possible throughout this process, and we look forward to sharing additional details in the coming weeks.”
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