Damian Lewis as Bobby Axelrod in the unique collection “BILLIONS” airing on Showtime.
Jeff Neumann/SHOWTIME
Paramount Global govt David Nevins, who joined Showtime in 2010 and has run the premium community since 2016, is leaving the corporate on the finish of the 12 months.
Along along with his departure, Paramount Global is restructuring Showtime in ways in which might give the corporate flexibility to successfully finish Showtime because it’s existed for many years — as an unbiased premium cable community churning out status hits reminiscent of “Dexter,” “Weeds,” “Billions,” “Homeland” and “Yellowjackets.”
Paramount Global introduced Thursday that it is transferring Showtime’s community enterprise beneath the management of Chris McCarthy, who runs different linear cable networks reminiscent of MTV and Comedy Central, and the streaming service beneath Tom Ryan, who runs Paramount Streaming.
The strikes come as the corporate is contemplating the concept of merging Showtime into Paramount+ and utilizing the community’s hit programming to gas Paramount+ subscriptions, based on individuals acquainted with the matter. The firm’s purpose is to have Paramount+ be one of many 5 largest world streaming providers, together with Warner Bros. Discovery’s HBO Max, Amazon’s Prime Video, Netflix and Disney+, stated the individuals, who requested to not be named as a result of the discussions are personal.
No choices about Showtime’s future have been made, and no adjustments are imminent, the individuals stated.
“We are at all times exploring choices to maximise the worth of our content material funding by giving shoppers entry to nice Paramount content material — together with the enduring, groundbreaking and premium content material choices of Showtime — throughout an array of providers and platforms,” a Paramount Global spokesperson stated.
“This change has additionally given us the chance to extra carefully align our studios, networks and streaming operations as we execute on our imaginative and prescient and technique for the longer term,” Chief Executive Officer Bob Bakish stated within the assertion.
Showtime’s hazy future
Paramount+ has 43.3 million world subscribers and expects to hit 100 million by 2024. The firm hasn’t detailed its variety of Showtime subscribers however final reported about 64 million subscribers throughout all of its streaming providers — Paramount+, Showtime, Noggin, BET+ and another smaller merchandise. Bakish additionally stated earlier this 12 months that Showtime misplaced 500,000 subscribers within the first quarter as hundreds of thousands of individuals cancel linear pay TV annually.
Paramount Global introduced a bundled promotion in August, permitting Paramount+ subscribers to look at Showtime’s content material inside the Paramount+ app for $7.99 per thirty days with promoting or $12.99 per thirty days with out commercials. That supply was step one towards doubtlessly making Showtime a tile inside Paramount+, totally merging the 2 providers, the individuals stated.
One impediment to pushing Showtime along with Paramount+ is present pay TV distributor agreements. The Wall Street Journal reported final month that Paramount has mentioned merely shuttering the standalone Showtime streaming service with no less than one pay-TV accomplice.
Another concept into account by Paramount Global executives is to maneuver Paramount+ originals and flicks to Showtime, successfully making Showtime a mirror to Paramount+’s content material that does not seem on different TV networks, two of the individuals stated. That might assuage pay-TV suppliers, who might regulate pricing in opposition to the merged streaming product.
Showtime’s potential evolution into Paramount+ displays a bigger pattern in media and leisure. HBO, Starz, Showtime and Epix — premium cable networks which have lengthy existed as add-ons to primary cable — do not have the size to outlive in opposition to the largest streaming providers. As a outcome, they’re in search of methods so as to add content material and broaden their audiences. HBO content material is featured on HBO Max, which can merge with Discovery+ subsequent 12 months. Starz is seeking to separate from Lionsgate so it might doubtlessly merge with different content material suppliers to achieve scale.
Eliminating Showtime as an unbiased entity would additionally include price financial savings from head rely reductions, reminiscent of Nevins’ departure, and know-how and advertising and marketing duplications.
WATCH: CNBC’s full interview with Paramount Global CEO Bob Bakish
