The news: Media giant Paramount Global is undergoing a “restructuring and streamlining” of its top-heavy management while simultaneously laying off several dozen staffers this week.
Paramount's mix of broadcast, free ad-supported streaming (FAST), subscriber video on demand (SVOD), and cable puts the company—whose brands include CBS, BET, Comedy Central, Pluto TV, Paramount Pictures, Smithsonian Channel, and Nickelodeon—“in a very powerful position" to weather the market, finance chief Naveen Chopra said at RBC’s media conference this week.
How we got here: Earlier this month, the company announced a 5% rise in third-quarter revenues, but the figures fell short of projections due to cord-cutting and a decline in ad revenues.
The Paramount+ imperative: It’s clear that the company’s flagship streaming service will be critical to its fortune in quarters to come as cable and broadcast TV continue to lose consumers.
We don't talk about Pluto: The company’s FAST service, which provides a range of content through digital linear channels created to mimic the feel of traditional broadcast TV, shouldn’t be slept on.
Our take: Paramount Global has been top-heavy, particularly since the 2019 merger of Viacom and CBS, so an executive shakeup was overdue.