Media giant Paramount Pictures Studios and cable networks including Comedy Central and Nickelodeon is cutting 3% of its workforce by notifying affected US-based employees on Tuesday, according to CEO Bob Bakish’s memo.
Shari Redstone’s National Amusements is said to be seeking a buyer for its company.
CBS Recorded Super Bowl Viewership
Totaling 123.4 million viewers tuned into Super Bowl LIII to watch the Kansas City Chiefs defeat the San Francisco 49ers in an exciting overtime victory, making it the highest-attended telecast ever. That includes both traditional television viewers such as CBS Television Network subscribers as well as streaming services such as Paramount+. Nielsen ratings will be released Tuesday; final estimates indicate it may surpass last year’s Super Bowl, which drew 115.1 million.
Likely contributing to its immense viewership was Patrick Mahomes and Travis Kelce playing stellar performances, as well as Taylor Swift cheering her girlfriend Karlie Bowers of Chiefs wide receiver Karlie Bowers during her halftime appearance – likely factoring heavily into its popularity.
Paramount Global has taken steps to cut costs amid its Super Bowl success by cutting approximately 800 employees – approximately 3% of its workforce at CBS, Nickelodeon, MTV and Comedy Central parent company Paramount Global. These layoffs represent about 3% of their overall workforce; as part of an ongoing restructuring that includes merging Showtime and Paramount + into one entity as well as shutting down MTV News; plus taking steps against media mogul Byron Allen’s takeover offer and negotiations over possible mergers with Warner Bros.
Subscribe today if you want to keep informed on these matters; subscribing is free and easy so don’t miss a beat on any key developments impacting corporate finance! Subscription to CFO Daily will keep you abrune of how issues and executives shaping corporate finance today – plus stay ahead of what matters in a fast moving industry! It’s free and simple! Signing up is free.
Streaming Platforms Lose Audience
Streaming companies have shaken up the media industry by using advertising revenue as the main source of their income. But Wall Street is now demanding profits, and many services still aren’t profitable yet; it will likely take some time before we see whether this model works or not for their respective industries.
Paramount Global is one of the biggest players in this space. The company owns Paramount Pictures movie studio, television networks such as Comedy Central and Nickelodeon as well as streaming platforms Paramount+ and Pluto. Furthermore, Paramount Global owns shares in Britain’s Channel 5 as well as stakes in some other companies.
Even as its Super Bowl broadcast drew in 123.4 million viewers both on television and online, CBS is facing a difficult environment in which its streaming operations operate. Many popular services are losing subscribers or incurring financial losses as subscribers drop.
Even winners like Netflix and Amazon Prime are still adapting to this new paradigm, while some more aggressive players such as Disney+ and Warner Bros. Discovery could potentially incur losses while spending heavily on original content creation; this may become especially evident as more services combine intellectual property with live sports broadcasts (such as HBO Max/Discovery Plus merger).
The Paramount Global’s Future
Paramount Global’s layoffs remain uncertain in their impact; the company will announce fourth-quarter results after market close on Feb 28. Their stock has fallen 27% this year despite solid box office performances with movies like Mission: Impossible Dead Reckoning and Teenage Mutant Ninja Turtles: Mutant Mayhem.
However, Paramount Global faces challenges due to a changing advertising landscape and tough economy as household spending on things such as entertainment is squeezed by rising costs for food, insurance, rent and utilities. Furthermore, Paramount has recently been subjected to merger and acquisition rumors with media mogul Byron Allen offering $14.3 billion for National Amusements which owns Paramount.
Bakish remains hopeful about Paramount Global’s future despite these layoffs, noting Sunday’s Super Bowl ratings as evidence of their ability to reach audiences, along with CBS’ new primetime shows and Jon Stewart’s return to Comedy Central’s “The Daily Show” on Monday night as evidence. He further mentioned their investments in digital and streaming opportunities such as their upcoming Yellowstone TV series which could mark its first major original programming launch since it was formed in 2017. Those affected will receive notification Tuesday; those based in the United States will likely be targeted.
- Friday Intraday Trading Sees Nvidia’s stock Market Cap Momentarily Cross $2 Trillion
- Trump’s January 6 Civil Cases Proceed While Criminal Case Is Halted
- Trump Delivers Speech at the Columbia Black Conservative Federation Gala
- Trump Declares Strong Support for IVF Following Alabama Supreme Court Decision
- Schumer in Ukraine Declares US Backing During House Aid Standoff
