Skydance Media and RedBird Capital Partners have shared their strategic plans for Paramount Global’s streaming business following the recent announcement of a merger between Paramount and Skydance.
During a Monday briefing, executives outlined their approach to the direct-to-consumer (DTC) business, which includes technological enhancements and potential streaming partnerships. They also discussed plans for the “New Paramount” expected to form upon the transaction’s completion.
“Streaming is an incredibly important part of the business and very much the future of the business,” stated David Ellison, who will lead the combined company as CEO.
Paramount’s current DTC services include Paramount+, Pluto TV, and BET+. Paramount+ alone had over 71 million subscribers in the first quarter of this year, despite not yet reaching profitability.
Ellison expressed intentions to rebuild the Paramount+ platform, leveraging technological expertise and strategic relationships to expand the DTC business. “We believe we can expand our DTC business with our technological prowess and relationships,” he said.
One focus is improving Paramount+’s recommendation algorithms to “increase time spent on the platform, reduce churn, and drive lifetime value for all shareholders.” Other technological opportunities include unifying cloud providers across all distribution services for efficiency and optimizing the company’s advertising technology.
Jeff Shell of RedBird Capital, slated to serve as president of the merged company, highlighted the importance of content strategy. “We will evaluate how much money we’re generating from our content, what content belongs where, and what content we should license to ourselves or others,” Shell said.
The “New Paramount” also plans to explore partnerships with other streaming platforms. “We’re evaluating all options to be a winner in DTC, which means being part of the ultimate bundle,” Shell noted. The market has seen an increase in streaming service bundles, such as Comcast’s “StreamSaver” and Disney’s package of Disney+, Hulu, and Max.
Paramount and Skydance aim to complete their merger in the first half of 2025, pending regulatory approvals and the outcome of Paramount’s 45-day “go-shop” period.
The companies estimate the enterprise value of New Paramount at approximately $28 billion.**Paramount-Skydance Merger: Executives Reveal Streaming Strategies**
Skydance Media and RedBird Capital Partners have shared their strategic plans for Paramount Global’s streaming business following the recent announcement of a merger between Paramount and Skydance.
During a Monday briefing, executives outlined their approach to the direct-to-consumer (DTC) business, which includes technological enhancements and potential streaming partnerships. They also discussed plans for the “New Paramount” expected to form upon the transaction’s completion.
“Streaming is an incredibly important part of the business and very much the future of the business,” stated David Ellison, who will lead the combined company as CEO.
Paramount’s current DTC services include Paramount+, Pluto TV, and BET+. Paramount+ alone had over 71 million subscribers in the first quarter of this year, despite not yet reaching profitability.
Ellison expressed intentions to rebuild the Paramount+ platform, leveraging technological expertise and strategic relationships to expand the DTC business. “We believe we can expand our DTC business with our technological prowess and relationships,” he said.
One focus is improving Paramount+’s recommendation algorithms to “increase time spent on the platform, reduce churn, and drive lifetime value for all shareholders.” Other technological opportunities include unifying cloud providers across all distribution services for efficiency and optimizing the company’s advertising technology.
Jeff Shell of RedBird Capital, slated to serve as president of the merged company, highlighted the importance of content strategy. “We will evaluate how much money we’re generating from our content, what content belongs where, and what content we should license to ourselves or others,” Shell said.
The “New Paramount” also plans to explore partnerships with other streaming platforms. “We’re evaluating all options to be a winner in DTC, which means being part of the ultimate bundle,” Shell noted. The market has seen an increase in streaming service bundles, such as Comcast’s “StreamSaver” and Disney’s package of Disney+, Hulu, and Max.
Paramount and Skydance aim to complete their merger in the first half of 2025, pending regulatory approvals and the outcome of Paramount’s 45-day “go-shop” period.
The companies estimate the enterprise value of New Paramount at approximately $28 billion.
