SkyShowtime board holds strategic review to decide streamer’s future
Pan-European streaming service SkyShowtime faces an uncertain future after the company’s board wrote to management warning it could be closed.
Yesterday, the board contacted CEO Monty Sarhan to inform him it is initiating a strategic review of the streamer, which is a joint venture (JV) between Comcast and Paramount.
The communication warned that, while no decisions have been made yet, closing SkyShowtime is one of the possible outcomes. The Hollywood Reporter was first to reveal news.
The board’s letter said: “SkyShowtime operates in one of the most competitive markets in our industry. Despite the excellent work of the team and the strength of what you and the team have built, the landscape continues to evolve rapidly and remains highly challenging.
“Against that backdrop, SkyShowtime’s shareholders are commencing a review of strategic options for the business, which includes the possibility of a wind-down. No decisions have been made and all options remain under consideration.”
It went on to explain that the streamer would continue to “operate as normal” while the board carries out the review, which is expected to stretch into 2027.
SkyShowtime staffers said that morale at the pan-European streaming service is “very low,” with employees worried about losing their jobs.
According to C21 sources, workers are clinging to the hope that widescale lay-offs can be avoided if SkyShowtime is integrated into Paramount+, should Paramount Skydance close its US$110bn acquisition of Warner Bros Discovery (WBD).
The future of the Amsterdam- and London-based company has been uncertain for some months now, with rumours swirling that Paramount bosses are unhappy that the OTT service has not yet turned a profit.
Sarhan shared the news with SkyShowtime employees yesterday, writing: “I know this news creates uncertainty and, as we work through what comes next, my priority and that of the leadership team is to be there and support all of you.”
Staff in both Amsterdam and London are today processing the news that they could lose their jobs.
“It’s a sad time for the team and most people wonder about their future,” said one employee who asked to remain anonymous. “Leadership is there for us but have no additional context to the letter from the board.
“Team morale is very low and has been for months. This news was somewhat expected, but most people didn’t think we would learn of it via email. We’re all in this together.”
SkyShowtime was rolled out in late 2022 following a lavish launch party in Amsterdam. Now active in 22 territories, the SVoD service boasts content from the combined catalogues of Universal Pictures, Nickelodeon, Paramount Pictures, DreamWorks Animation, Paramount+, Showtime, Sky Studios and Peacock.
The platform has also been active in commissioning original programming in markets such as Poland, Sweden and Spain.
However, it has been plagued by rumours that it is not making money and that Paramount might decide to pull the plug on the service to instead focus on the complex integration of Paramount+ and HBO Max.
Furthermore, Paramount’s proposed mega-merger with WBD’s HBO Max could put the David Ellison-run company in breach of its JV arrangement for SkyShowtime.
C21 understands that with the threat of lay-offs looming, staff are hoping that SkyShowtime can be folded into Paramount+.
A source said: “With the Paramount acquisition of WBD, the JV agreement between Comcast and Paramount will be no longer valid, since it prevents the parties from competing with each other. HBO Max is a direct competitor in our 22 markets and would be owned by Paramount after the merger.
“We expect the board’s review to take months, with content and budgets already locked in. Hopefully SkyShowtime will be integrated into Paramount+, which would mean an easy plug-and-play extension of the Paramount+ streaming service in 22 markets.
“That integration would mean keeping some teams in place – like Poland, Spain and the Netherlands – to launch Paramount+ in those markets. We hope for more news after the next meeting of the board, in around two weeks.”
C21 has contacted SkyShowtime for a response.
