Paramount to cut back on international originals in pursuit of profit

Paramount CEO Bob Bakish has confirmed further lay-offs are expected as the US company plans to cut back on international originals and chase streaming profitability.

In a memo to staff yesterday, Bakish said that as a result of challenges including “a soft ad market, a volatile macroeconomic environment and two historic strikes,” Paramount “will continue to reduce our workforce globally,” adding that: “These decisions are never easy, but are essential on our path to earnings growth.”

Confirmation of these lay-offs comes just days after US reports suggesting a further 800 jobs were to be axed, following other recent cuts including 120 exits as the company integrated the Showtime and Paramount+ brands, cutbacks at the Smithsonian Channel and the merging of the Showtime and MTV Entertainment Studios teams.

The Paramount chief also revealed in his memo that the company would be focusing more tightly than ever on content with the “biggest impact” and said it has become clear that “Hollywood hits” are its biggest draw.

This means that Paramount will produce “fewer local, international originals for our platforms”, apart from its FTA networks in Australia, Argentina, Chile and the UK, “where we will continue to have a strong pipeline of local content.”

Bakish said that the company’s goal for 2024 would be to drive earnings growth and profitability for its streaming services including Halo and Yellowstone SVOD Paramount+. Accordingly, Paramount will “lean even further into large markets like the US, UK, Canada, and Australia, where we have a strong multiplatform presence, our US studio content resonates best, and where there is the greatest revenue potential.”

The Paramount CEO said that the company would continue a market-by-market strategy in other important markets across Europe, Latin America and Asia.

“Globally, increasing subscriber engagement and retention across our platforms will also be critical priorities on our path to streaming profitability. So will driving revenue across advertising, subscriptions, and licensing – including through our recently announced Paramount+ branded destinations – while we continue to operate as efficiently as we can and reduce costs,” said Bakish.

The memo comes amid increasing interest from parties eyeing a Paramount acquisition, with its majority owner National Amusements reportedly listening to offers for its assets.

David Ellison’s Skydance Entertainment made a preliminary offer earlier this week, while a recent Bloomberg said that Apollo Global Management was also considering making an offer. Meanwhile, Warner Bros. Discovery CEO David Zaslav and Paramount chief Bob Bakish reportedly met up in New York City late last year to discuss a potential merger.