Adam Epstein’s Post

As someone who is a member of the Executive Leadership Council (ELC) and deeply invested in the progress and representation of black individuals in the entertainment industry, it's imperative to highlight Byron Allen's bold initiative to acquire BET Media Group. This move can redefine the landscape of black entertainment and bring it under the stewardship of a black CEO who is dedicated to crafting content that enriches the experience of black individuals, free from the lens of historical oppression and white supremacy. Byron Allen's strategic offer of $3.5 billion for BET Media Group, encompassing the BET cable channel, VH1, BET Studios, and the streaming service BET+, represents an opportunity to significantly expand his media empire. The potential acquisition not only signifies a transformative shift in ownership but also holds the promise of amplifying meaningful and genuine representation of black individuals within the entertainment space. While Paramount Global, the parent company of BET Media Group, has previously refused an offer of $2.7 billion, it is disheartening to witness their ongoing resistance—even in the face of a substantially increased offer of $3.5 billion. This refusal appears to be a deliberate decision to impede efforts aimed at returning black-owned entertainment assets to the fold of a black CEO, and in doing so, perpetuates the systemic exclusion and marginalization of black voices in the industry. This pivotal moment underscores the necessity of advocating for inclusive and equitable ownership structures within the entertainment industry. It serves as a call to action for industry leaders and stakeholders to support efforts that seek to elevate black narratives, creativity, and entrepreneurship within the media landscape. The potential acquisition of BET Media Group by Allen Media Group has the power to shape the future of black representation in media, embracing authentic storytelling and fostering an environment that empowers black creators to thrive and inspire. As members of the ELC, it is crucial for us to recognize and champion initiatives that align with our mission to promote diverse and impactful leadership in the entertainment industry. By championing the vision and initiatives of leaders like Byron Allen, we affirm our commitment to dismantling systemic barriers and advancing the presence of black leadership and ownership in the entertainment sphere. This stands as an opportunity not only to shape the trajectory of the industry but to significantly influence the narratives and experiences of black individuals through the power of authentic and representative content. #BlackLeaders #EntertainmentIndustry #TVNetworks

From THR: Amid its quest to slim down its asset portfolio to scale up its core #entertainment ambitions, #Paramount Global hit 63 million global streaming subscribers in the latest quarter (up from 61 million as of the end of June) and kept narrowing losses in its direct-to-consumer segment to $238 million, a possibly encouraging sign for Wall Street. The Bob Bakish-led conglomerate, home to Paramount Pictures Studios, CBS , Showtime, MTV, Comedy Central, BET and Nickelodeon, has battled the perception that it’s too small to compete at scale in #streaming with giants like Netflix (247 million subscribers) or The Walt Disney Company + (105 million core subs). Overall, Paramount reported $621 million in operating income profit for the third-quarter, up 10 percent from the same frame a year ago. Its flagship streaming service Paramount+ is powered by Taylor Sheridan-universe shows like 1883 and Special Ops: Lioness, National Football League (NFL) games, Star Trek spinoffs and its new Fraiser update, but the direct-to-consumer division lost $424 million and $511 million in its last two quarters. In an effort to cut costs, the company has sunset its standalone SHOWTIME app, raised prices and integrated the premium cable brand’s shows like Yellowjackets and Billions into Paramount+.

Paramount Global announced its Q4 results this week with the company's streaming service, Paramount+, recording 4.1 million additional subscribers in Q4. Total global subscribers for the service at the end of 2023 came in at 67.5 million. Although Paramount Global is navigating through challenges in its conventional business segments, its strategic shift towards streaming seems promising. The success of Paramount+ stands out, with an expectation for the service to reach domestic streaming profitability in 2025. Watch this space. #ParamountPlus #StreamingGrowth #streamingwars

During the latest quarter, the company hit 71 million Paramount+ streaming subscribers worldwide, up from 67.5 million Paramount+ customers at the end of its 4th quarter, and 3.7 million customers added during the last 3 months. And the studio shrunk its streaming loss to $286 million for the 1st quarter, an improvement over a $511 million loss in Q1 2023. Direct-to-consumer revenue rose 24% to $1.87 billion, as advertising and subscription revenues were both up, driven by growth from Pluto TV and Paramount+.

Paramount Global, a powerhouse in the global media and entertainment landscape, is making headlines. Known for its diverse offerings, including the CBS broadcast TV network, cable channels Nickelodeon, MTV, Comedy Central, SHOWTIME, Smithsonian Channel, and BET, Paramount Pictures and Miramax film studios, TV studios, and digital streaming ventures Paramount+ and Pluto TV, Paramount is now at a critical juncture. In what could be a game-changing move, Paramount and entertainment industry heavyweight Warner Bros. Discovery are in preliminary discussions about a potential merger. This mega-merger would combine legendary Hollywood film studios Paramount Pictures and Warner Bros., creating a formidable media empire with assets like HBO and CBS under one umbrella. However, these are early days, and nothing is set in stone. Should this merger proceed, it's bound to attract intense scrutiny from the Federal Communications Commission, particularly under the Biden administration known for its antipathy toward large-scale mergers. Yet, insiders are optimistic, citing Warner Bros. Discovery's lack of a broadcast network as a potential advantage in navigating regulatory hurdles. Both companies have been grappling with the broad consumer shift from traditional cable TV to streaming services, a transition that hasn't fully offset the decline in profits from their cable operations. The high costs of content creation, especially in sports, have further strained Paramount's finances. The company faces significant financial commitments in 2024, including $2 billion for NFL media rights and numerous film productions. Paramount's financial health has shown signs of strain, with credit ratings downgrades by S&P Global and Moody’s Investor Service leaving the company teetering on the edge of non-investment grade status. The downgrades reflect concerns over diminishing cash flows from Paramount's linear TV business and the uncertain profitability of its streaming ventures. In response, Paramount has embarked on a strategy to divest non-core assets, successfully selling its Simon & Schuster publishing division to KKR for $1.62 billion, alongside other real estate assets. Rumors abound regarding the potential sale of Paramount’s BET Media Group, with Byron Allen's media company having made a $3.5 billion bid in December 2023. Paramount also has a financial buffer with a $3.5 billion revolving credit facility. As Paramount navigates turbulent waters, the big question looms: Will a merger with Warner Bros. Discovery sail smoothly or be another case of titanic ambitions hitting an iceberg? One Page Thinking extends special thanks to the dream team of Adam Rosen, Jackie Nemanich, and Younggyu Lim for their contributions to the accompanying diagrams of the Paramount Global business ecosystem and the entertainment industry landscape, available here: https://lnkd.in/e3wxBjaC #OnePageThinking #streaming #broadcastTV #cableTV

In an otherwise slow news day here at Paramount 😂, our incredible Paramount Streaming team delivered stellar Q1 results: - Quarterly revenue grew 24% y/y to ~$1.9B - Earnings (OIBDA) were 44% better than last year - Paramount+ revenue grew 51% y/y due to adding 3.7M subscribers q/q to 71M+ total and expanding ARPU 26% - Pluto TV delivered record viewing hours...again - Streaming ad revenue was up 31% y/y We're executing very well on our path-to-profitability: - Paramount+ (which launched just 3 years ago!) is expected to be domestically PROFITABLE next year. - Pluto TV became globally PROFITABLE way back in 2021! Despite all the noise, it's focus and execution that matters. And our world-class, entrepreneurial Paramount Streaming team has that in spades. #paramountplus #plutotv #streaming #growth #execution

🖥️✅ NextTV (8/7): “Meanwhile, the company added around 700K Paramount+ subscribers during the quarter — vs. forecasts of a customer loss — upping the service’s total base to 61MM users. The Paramount+ additions come after rival Warner Bros. Discovery lost 1.8MM customers in Q2 across HBO, Discovery+ and the newly rebranded Max. Viewing hours across Paramount+ and the ad-supported Pluto TV were also up 35%. Meanwhile, despite a sluggish ad market and distribution losses from video cord cutting, Paramount’s linear “TV/media” revenue declined only 2% in the quarter to $5.157B. Advertising revenue declined 10% in Q2.” ⬇️ #streamingtv #ctvadvertising https://lnkd.in/ekVkj_SV

#Paramount Pictures and streamer facing interesting merger/purchase during changing #film industry. Shari Redstone in exclsuive sales talks for iconic #filmstudio brand and assets. #SkydanceMedia is believed by many to already have tentative deal. Latest in ever evolving #streaming industry. #motionpictures #TV #streaming #PR #content #entertainment #keynotespeaker #ethicsspeaker #expertwitness

Paramount Global revenue in the first quarter climbed 6% year-on-year as Paramount+ added 3.7m subscriptions to reach 71m-plus and the streaming business cut losses by more than 40%. Less than 30 minutes after the company announced the departure of CEO Bob Bakish and the establishment of a new leadership triumvirate comprising divisional heads George Cheeks, Chris McCarthy, and Brian Robbins, the trio led a whistlestop earnings call before signing off to the strains of Mission: Impossible without taking analysts’ questions. Overall revenue for the period ending March 31 climbed 6% year-on-year from $7.4bn to $7.7bn, while operating loss improved 66% from $1.2bn to $417m.

Will and can Sheri Redstone go it alone with Paramount and a streaming deal with Peacock? How quickly could regulatory concerns over the Sony/Apollo deal be resolved? It's likely that this would take months, rather than days/weeks. Paramount is being sued by a shareholder for details of the Skydance negotiations? Is Sheri Redstone acting in her own interests, and being neglectful of small shareholders? "Redstone’s control over Paramount’s fate lies in the company’s unorthodox ownership structure. National Amusements, the family’s holding company, owns her stake in Paramount with 77 percent of preferential voting shares but roughly five percent of common stock. This gives National Amusements the power to oversee Paramount’s operations while only maintaining a ten percent equity stake." #paramount #sheriredstone #skydance #sony #apollo #peacock #paramountplus #showtime #cbs #nbcuniversal #entertainmentindustry