The future doesn’t look good for Paramount Global — the Hollywood large that owns CBS, Paramount Pictures, Comedy Central, BET, Pluto TV, and lots of different media properties.
Paramount Global’s monetary outlook took a success Friday when S&P Global slapped it with a “credit watch negative” score over issues concerning the firm’s money circulate. The report blamed “the ongoing deterioration of the linear television ecosystem and the shift toward a lower margin direct-to-consumer (DTC) streaming model.”
Like different legacy Hollywood studios, Paramount is feeling the ache from tens of tens of millions of Americans canceling their cable TV subscriptions. At the identical time, the studio’s streaming companies — together with Paramount+ and Pluto TV — continue to lose money at an alarming fee.
The unhealthy information comes amid ongoing acquisition rumors which have swirled round Paramount for a lot of months. Among the potential suitors is David Ellison’s Skydance, which helped finance the newest Mission: Impossible films and Top Gun: Maverick.
This month, Paramount began laying off round 800 staff, or 3 % of its workforce, in an effort to chop prices.
The layoffs symbolize the newest Hollywood massacre following comparable strikes at different media giants, together with Disney, NBCUniversal, Amazon MGM Studios, and Universal Music Group.
Hollywood can also be feeling the squeeze from the promoting market, which is still in the doldrums because of poor client sentiment tied to President Joe Biden’s financial insurance policies.
As Breitbart News reported, Warner Bros. Discovery just lately reported its monetary outcomes for the newest quarter took a considerable hit because of weak TV promoting income.
Follow David Ng on Twitter @HeyItsDavidNg. Have a tip? Contact me at dng@breitbart.com
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