Paramount Pictures, with its 112-year history of producing iconic romances like “GREASE” and “Breakfast at Tiffany’s”, is now at the center of a dramatic courtship involving streaming rivals, private-equity buccaneers, a billionaire’s son, and the owner of the Weather Channel. The wooing of Paramount Global, the studio’s parent company, has commenced as Shari Redstone, president of National Amusements, is considering selling the controlling stake in the firm. This battle for Paramount signifies the decline of a Hollywood dynasty and reflects the challenges facing the entertainment industry.
Paramount, the last major studio headquartered in Hollywood, has faced significant upheaval in recent years. Ms. Redstone had to reclaim control of the firm from her father’s former girlfriends after his passing in 2020. Paramount Global now encompasses the film studio, the Paramount+ streaming service, and traditional “linear” TV networks from CBS to MTV.
The company is in dire straits. Paramount’s revenue from linear TV, which accounts for nearly 80% of its income, is declining as cable subscribers cancel their contracts. The hope is that streaming will provide a lifeline. Paramount+ boasts over 60 million subscribers and a string of successful shows, including various “Yellowstone” spin-offs. However, it incurred a $1.2 billion loss in the first nine months of 2023 and seems years away from profitability. Paramount’s market value has plummeted by half in the past two years, now standing at under $9 billion.
2024-02-15 10:59:41
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