Ellison outlines vision for new Paramount with focus on content and technology

Yahoo

3 days ago

By Dawn Chmielewski
LOS ANGELES (Reuters) -Paramount's new chairman and chief executive, David Ellison, outlined a plan to transform the century-old entertainment company into a technology-driven media enterprise in an open letter marking the completion of the merger with Skydance Media.
Ellison said the company would work to transform Paramount by investing in growth businesses that are anchored in its storytelling, working to scale its streaming business globally, and reorganizing the company to make it more efficient.
"We are in the midst of a generational change in our industry - and we understand Paramount has faced its own significant challenges, compounded by the reality of a merger process that stretched out over a considerable time period," Ellison wrote.
"But that time of uncertainty is now behind us. Moving forward, we will work with conviction and optimism to transform Paramount into a tech-forward company that blends the creative heart of Hollywood with the innovative spirit of Silicon Valley."
Paramount Global and Skydance Media Thursday completed their $8.4 billion merger that was announced more than a year ago, capping a long drawn-out deal process marked by political scrutiny and shareholder concerns.
Ellison said he plans to reorganize Paramount into three business units - studios, direct-to-consumer and TV media - to speed decision-making. He plans to move the company onto a single technology platform to reduce costs, and said the company would find efficiencies associated with labor, real estate and procurement, with the goal of achieving a previously announced $2 billion in cost savings.
New Paramount will direct resources "to what matters most," Ellison wrote, delivering more movies, television series, sports, news and games to global audiences.
Paramount will harness technology, not as a replacement for human creativity, but as a tool to amplify creativity.
"From virtual production stages that unleash filmmakers' limitless imaginations, to AI‑assisted localization that brings shows to new language markets overnight, to a proprietary ad‑tech stack that maximizes yield across streaming and linear platforms, we will thoughtfully integrate these tools into every aspect of our work," Ellison wrote.
Ellison said the company would prioritize growing its streaming business, increasing investment in high-quality exclusive content, which he called the "single biggest driver of subscriber growth."
Sports is a key component of the streaming strategy, as a tool to retain subscribers and keep them watching.
The company plans to move its subscription streaming service, Paramount+, and its free ad-supported PlutoTV service onto the same technology, to help save money and improve the consumer experience.
Ellison laid out the company's core commitments, including to its embattled CBS News division. He acknowledged the journalists' "unwavering commitment" to the news business, and added: "We take immense pride in CBS News' legacy of impactful journalism and look forward to continuing to foster a newsroom culture where journalists are empowered, trusted, and equipped to do their best work."
In its effort to gain regulatory approval of the merger, Skydance told the Federal Communications Commission that it would appoint an ombudsman to evaluate complaints of editorial bias or other concerns about CBS. It also offered assurances that they were committed to unbiased journalism.
Democrat Anna Gomez, the FCC's dissenter, accused Paramount of "cowardly capitulation" to the Trump administration. She also said the FCC was imposing "never-before-seen controls over newsroom decisions."