While the flurry of M&A activity we saw in 2021 and 2022 has died down considerably, the trend is still underway- and the latest to join ships together will be Paramount+ and Showtime. Entertainment attorney and industry expert, Blake & Wang P.A’s Brandon Blake, guides us through what we know.
Rebrand Ahead
Of course, with any merger comes a rebrand, and this one will be no different. The newly combined entity will launch as ‘Paramount+ with Showtime. As linear Showtime and streaming Paramount+ (or at least its premium tier) merge, we can expect both a rebrand and a whole lot of uncertainty for staffers at both entities, especially while we have so few details to work with. The newly combined entity will be focusing on ‘shows with franchise potential,’ another booming trend at the moment. Of course, a programming switch-up will be needed, too. For now, we know that Chris McCarthy will take the helm for the Showtime studio, while Tom Ryan will oversee the streaming side.
Layoffs Ahead
There has been a spate of high-profile layoffs in Hollywood and entertainment companies of late. Paramount CEO Bob Bakish seems keen to try and keep concern to the minimum, with an internal memo to staff members this week taking great pains to try and soothe uncertainty and panic, albeit without really offering any solid details to work on. Despite the fancy verbal footwork, however, it’s clear there will be cuts with the merger, we’re just waiting on the details. Additionally, we will also see some forthcoming details for those who hold both Paramount+ and Showtime accounts, which will necessitate a merger of its own.
As for programming? The new entity is set to ‘lean in’ to Showtime’s ‘brand strengths’. On the chopping block is programming that is netting less than 10% of either entity’s views. We’ve already seen American Gigolo and Let the Right One In canceled ahead of the merger, while Three Women has been jettisoned from pre-development despite having completed production.It is destined to be shopped to other outlets currently.
While the overall decline in linear TV is no secret, this new merger is doubtless intended to better position Paramount+ to compete with larger streaming entities like Disney and Netflix. As we know, there’s a merger ahead for the linear HBO, streaming HBO Max, and pre-existing Discovery+ on the cards for this year, in line with the merger of parent entities Discovery and WarnerMedia last year. The ground for this coming merger was also laid last year, when we saw Showtime added as a discounted bundle option to the wider Paramount+ package. While at the time the two apps were simply offered separately, now we will see the full merger.
As the streaming boom slows down and we see leaders emerge from the pack, this doubtless won’t be the last merger we see aimed at strengthening and rebranding smaller streaming entities to become more competitive on the wider market. The era where households will carry endless new subscriptions is fast coming to an end as it is. Will the gamble work out for Paramount+? We will have to wait and see.
