Paramount to pull back on international output, refocus on ‘Hollywood hits’

Harrison Ford and Helen Mirren in Yellowstone spin-off 1923, a Paramount+ original

US studio Paramount Global is set to pull back on its international content investment as it refocuses on “Hollywood hits,” according to CEO Bob Bakish.

In a memo sent to staff on Thursday, Bakish said the US-based media company would “produce fewer local, international originals” for its platforms, except for its free-to-air networks in Australia, Argentina, Chile and the UK.

“For our audiences and partners around the world, it’s become very clear that our Hollywood hits are the biggest draw. So, in 2024, we’re focusing our resources on the most powerful, resonant franchises, films and series that perform across platforms globally,” he said.

Given that all the US-based studios and streamers are cutting costs, it is not enormously surprising that Paramount Global plans to spend less on international shows. However, its decision to reduce its international output stands in stark contrast to some of the proclamations made less than two years ago about ramping up its non-US commissioning business.

Bob Bakish

Paramount’s key priority for the year is driving earnings growth, said Bakish, which will be achieved by “closely managing costs.” In addition to pulling back on international content spending, he said the other key goals for the year are moving closer to reaching streaming profitability and streamlining its operations.

On the streaming profitability front, Bakish said Paramount will “lean even further into large markets like the US, the UK, Canada and Australia, where we have a strong multiplatform presence, our US studio content resonates best, and where there is the greatest revenue potential.”

In other markets across Europe, Latin America and Asia, the media company will continue with a “market by market” strategy that will ensure it is “operating with the best model to drive local scale and viewership, while managing costs,” said Bakish.

In the third quarter, SVoD service Paramount+ added 2.7 million subscribers to reach 63 million globally. The streamer’s roster of originals includes Special Ops: Lioness, Mayor of Kingstown, Tulsa King, the Frasier reboot and Yellowstone spin-offs 1883 and 1923.

It also saw its direct-to-consumer losses narrow to US$238m, compared with US$343m in the same period the year prior. The company will report its year-end earnings on February 28.

In terms of streamlining the business operations, Bakish acknowledged that more lay-offs are on the way.

Recent reports have suggested that between 800 and 1,000 jobs will be eliminated across the breadth of the business, with those cuts set to begin next month.

“We will continue to be as thoughtful as we can be, communicate when there is information to share and support our teams throughout,” added Bakish.

Paramount is facing issues on numerous fronts, including a soft advertising market and accelerating cord-cutting, which have made it the most speculated-about acquisition target in Hollywood over the past six months.

Earlier week, David Ellison’s Skydance Entertainment made a preliminary offer to acquire Shari Redstone-owned National Amusements, which is the parent company of Paramount Global. Other companies have also shown interest in exploring a deal, with Warner Bros Discovery CEO David Zaslav meeting with Bakish last month and private equity firm Apollo Global Management also reportedly expressing interest.