Paramount Global is gearing up for a significant financial maneuver in Q1, expecting to incur a $1 billion charge due to layoffs, restructuring, and content write-downs. Amidst these challenges, CEO Bob Bakish has highlighted several strategic initiatives aimed at bolstering the company's position. These include a focus on offshore production to reduce costs, leveraging franchises, and exploring low-cost unscripted content. Paramount is also aiming for low to mid-teens advertising growth in Q1, buoyed by the Super Bowl's impact, and predicts FCF will grow in 2024 vs 2023. Furthermore, the company is exploring bundling opportunities, with Bakish mentioning the evolution and growth of the Walmart partnership. However, Paramount's stance on the upcoming sports streaming venture by Disney, Fox, and Warner Bros. Discovery (WBD) is skeptical. Bakish doubts its appeal to true sports fans, citing a lack of comprehensive sports coverage. Despite the competitive landscape, Paramount+ has shown growth, with a 17% year-over-year increase, Paramount+ Global ARPU's +31% YoY in Q4 FY23, and subs +21% YoY.
Paramount CEO Bob Bakish on the ESPN-FOX-WBD streamer: "It’s missing half the NFL, a lot of college [and] has virtually no soccer [or] golf... it’s hard to believe that’s ideal [for sports fans]." Will "Spulu" be a good deal for sports fans?
#Paramount CEO Bob Bakish doesn't appear to be threatened by the upcoming #sports #streaming service led by three competitors. https://t.co/tk7cYhNDia
Paramount CEO makes the case for ESPN-Fox-WBD streaming venture https://t.co/SgpxM2LyUz https://t.co/kV1etLjfDa
Paramount Global Races to Make Streaming a Profit Center – But the Clock Is Ticking | Analysis https://t.co/vM3P5S4iV8
Heard on the Street: The Super Bowl gave Paramount’s beleaguered ad business a lift, though deal rumors still cloud the media giant’s future https://t.co/Z0u9EHty7m https://t.co/Z0u9EHty7m
Paramount+ Global ARPU's +31% YoY in Q4 FY23, with subs +21% YoY https://t.co/LDj8pcf5L4
Paramount+ grows 17% yoy, Netflix grows 11.5%. EV paid per subscriber $PARA: $340, 5.1x Rev / Sub. EV paid per subscriber $NFLX: $1,030 7.3x Rev / Sub.
At Paramount, reducing programming spend has now become a top corporate priority https://t.co/xDUDm3L5ZI
Paramount CEO: Ad market tough, but bright spots ahead https://t.co/tkPlcpQvch by @allie_canal
Planned Disney-Fox-WBD Bundle “Only Has A Subset Of Sports”, Paramount CEO Bob Bakish Says: “It’s Hard To Believe That’s Ideal” https://t.co/hOpP19WGMd
Paramount to Cut Spending on Movies, Shows In 2024 https://t.co/zmLzbSy0Ry
Paramount Global expects to take a $1 billion charge in Q1 for layoffs, restructuring and content write-downs. https://t.co/GqWUCPuKDY
Paramount Global Sees $1 Billion Charge in Q1 for Layoffs, Restructuring https://t.co/RCae4A1ihd via @variety
Bakish says Paramount continues to look for "incremental" bundling opportunities. Combining with Peacock wouldn't be incremental. But offering a bundle with Peacock might be.
Paramount’s Bob Bakish Doubts the Fox-Disney-WBD Sports App Will Be ‘Ideal’ for ‘True Sports Fans’ https://t.co/Gn55jkaa04
$PARA CEO Bakish on Dis/Fox/WBD new sports JV: Notes many unknowns, including consumer appetite. "Hard to believe that's ideal" for sports fans given amount of sports missing in Spulu.
Paramount Global predicts FCF will grow in 2024 vs 2023 despite increase in cash spend from productions beginning after 2023 strikes.
Paramount Global CFO: Low to mid-teens advertising growth in Q1 projected, with benefit of the Super Bowl.
Paramount Global CEO Bob Bakish says Walmart partnership "continues to evolve and grow."
Paramount Global CEO touting offshore production (lower cost), building on franchises, unscripted (low cost), and lowering the cost of the average movie. The creative community must love hearing this!
Disney-Fox-WBD Sports Bundle Raises "More Questions Than Answers" For Nexstar Exec Mike Biard, But He Sees Upside If Venture Does "Actually Launch" https://t.co/gS8g5WTXdD
Nexstar President Says Fox-Disney-WBD Sports Streaming Venture Will Offer ‘Additive’ Revenue Stream, Dings ‘Market Overreaction’ to Deal https://t.co/GtslZiAPp3