Paramount looks to partnerships and licensing to ‘play through the trough’

Paramount CEO Bob Bakish has said the company is “playing through the trough” of a challenging market with partnerships and “new-age content licensing” at the heart of the strategy.

Bob Bakish

Bakish told delegates at MIPCOM that the company is looking to work with partners in many countries rather than going D2C with streamer Paramount+, adding that the strategy around streaming and linear has become more complex across the industry.

“There has been continued discussion about streaming, the robustness of that business and of its profitablity. But I would say now it is more true than ever that you need to have a significant exposure to streaming, consumers are still moving to it, while linear remains a gradual decline so it is vital we build the streaming business.

“People like simple answers and what was in vogue three years ago with streaming was to go DTC in every country. The reality is that it’s not that simple.

“We have a multifaceted approach to streaming with partnerships and that is a more financially powerful way and it is more responsible to the market. The street’s view on the value of streaming has moved adversely but the importance of having a scaled asset has never been more important.”

The ad squeeze has put further pressure on US studios but Bakish reiterated that he expected to see earnings growth in 2024 as streaming losses narrowed.

“We are in the trough, so be it. We play through it.

“And yes, the trough is slightly deeper because the ad market got a little softer but we have done work on the cost side, we consolidated Showtime and Paramount, but clearly the ad market softening in 2022 and into 2023 was an additional headwind. And now we are playing through that.”

Portfolio approach

Bakish said Paramount+ would remain D2C in key markets such as the US and the UK, but added that there would be an increasing number of deals such as the one struck today with Cosmote TV in Greece.

That pact will see Cosmote creating a Paramount+ branded area on its platform, offering Paramount channels but also allowing customers to search and stream for content including Elsbeth, The Affair and upcoming Lawmen: Bass Reeves.

Bakish described the deal as “not old school but new-age content licensing”.

He added: “We have launched in the US and certain international markets but as we look to grow that business we see opportunities to provide content via an output deal but in a Paramount+ envelope allowing [Cosmote] to ingest those shows.

“Cosmote also offers local Greek shows, they have sports rights etc, so we are really ensuring that for the consumer, Paramount+ is a part of their experience and that helps with engagement, it helps with churn and has a far better financial expression than simply launching D2C in every market.

“For us, it is a very important development for our content licesning business and, candidly, it is the first of many such markets where we’re unlocking like that.”