Paramount Global’s chief financial officer said the company will take a hit of $1.3 billion to $1.5 billion in the current first quarter, mostly on content, as it restructures its streaming business and absorbs Showtime into Paramount+.
Naveen Chopra said on a post-earnings conference call that the combined service will drive up prices: the rebranded Paramount + With Showtime will cost from $9.99 to $11.99 a month. The essential level of Paramount+ without Showtime goes from $4.99 to $5.99 per dollar for new and existing customers.
This will continue to fuel Par’s substantial streaming earnings as it peaks capital and operating losses in 2023, he said, and reaffirms his plans to move to streaming profitability and overall positive free cash flow for the company in 2024. The Showtime integration will make a big contribution. He predicted $700 million in future annual cost savings.
“A single service requires less content to acquire and retain subscribers than two services,” said CEO Bob Bakish. Showtime has a bigger share, he said, and viewers tend to cluster around a handful of big shows, which account for half of its content spending.
The recently announced Showtime integration, which will take effect later this year, has led to leadership changes and significant layoffs.
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Source: Deadline
Joseph Fearn is an entertainment and television aficionado who writes for The Fashion Vibes. With a keen eye for what’s hot in the world of TV, Joseph keeps his readers informed about the latest trends and must-see shows.
