Bob Bakish Says Paramount Global Is Prepared for Ongoing Writers Strike: ‘We Have a Lot in the Can’

Jennifer Maas TV Business Writer Showtime research and scheduling chief Kim Lemon is exiting his post after 34 years with the company. Upon his exit, MTV Entertainment Studios and Paramount Media Networks’ Laurel Weir will be adding oversight of the Showtime brand (soon to be renamed Paramount+ With Showtime) to her purview. Most recently executive vice president of data strategy, research, scheduling and programming, Lemon began his career at Showtime more than three decades ago as a manager of marketing research. “Throughout his tenure, Kim has played an integral role in Showtime’s evolution from a linear network to a bonafide streaming service, establishing a first-in-class data science group,” wrote Showtime/MTV Entertainment Studios and Paramount Media Networks president Chris McCarthy and Paramount’s executive vice president and chief research officer Colleen Fahey Rush in a memo to staff Tuesday, which was obtained by Variety. “He is a pioneer in brand strategy, always prioritizing our content and being mindful of how it would inform our growth while showing great reverence for the creative process and our audience’s feedback.”

Jennifer Maas TV Business Writer SAG-AFTRA has struck a deal with celebrity video platform Cameo to cover the brand deals that members make through Cameo for Business (C4B) under a guild contract. The new pact, “C4B x SAG-AFTRA Agreement,” will allow SAG-AFTRA members to count C4B earnings toward health and pension benefits, just as those earnings become a growing concern for out of work actors while the Writers Guild of America’s strike against Hollywood studios and their organization, Alliance of Motion Picture and Television Producers (AMPTP), rages on. SAG-AFTRA has been a big supporter of WGA on the picket line over the first three weeks of the strike, with SAG-AFTRA president Fran Drescher being very vocal ahead of the the actors guild entering its own contract negotiations with the AMPTP on June 7.

Jennifer Maas TV Business Writer For its first-ever upfronts presentation, Netflix took a page out of broadcast networks’ traditional playbook and boasted about not just what series it has launching in the coming months, or even through the end of the year, but specifically calling out its fall 2023 slate. A staple of upfronts week — though not as much lately, first because of the COVID-19 pandemic and now because of the writers strike — has been the unveiling of ABC, NBC, CBS and Fox’s fall lineups. This was done so advertisers knew what they were buying ads against and therefore what demos and audience size it would be most likely to reach by promoting products during those programs.

Jennifer Maas TV Business Writer Warner Bros. Discovery kicked off its 2023 upfront presentation in a no-frills way, with an overall brand sizzle and ad chief Jon Steinlauf giving a few remarks on stage at the Theater at Madison Square Garden Wednesday. While the presentation covering HBO, Max, CNN, Food Network, HGTV, Discovery and more Warner Bros. Discovery brands was shorter than last year’s show (which was the company’s first since the merger that created it last April) the tight 90-minute presentation still covered each of its key divisions. Albeit, with much less sizzle, with no stars in attendance amid the writers strike. “Let me just start by saying I am hopeful that a fair resolution is found soon with the writers,” HBO and Max chief Casey Bloys said, adding that he hopes for a return of talent to the stage, “making this a far more entertaining show” compared to “me and my clips.”

Jennifer Maas TV Business Writer Warner Bros. Discovery has asked talent not to appear in-person at their Wednesday upfronts presentation, so as not to put those individuals in a position where they need to cross the Writers Guild of America’s picket line amid the ongoing writers strike, Variety has learned. A source close to the situation says this choice was made by WBD out of respect for both the talent and the writers on strike. However, talent will be represented in other ways throughout the show, and the event will cover all parts of the WBD business operations. The original pre-strike plan had been for a robust lineup, including big WBD stars like Magnolia Network’s Chip and Joanna Gaines, but has been trimmed down since the strike went into effect May 2, when the WGA and Alliance of Motion Picture and Television Producers failed to ink a new contract.

Jennifer Maas TV Business Writer The last-ever episode of “9-1-1” on Fox airs Monday, and it’s a bittersweet occasion for Oliver Stark, who has starred as Evan “Buck” Buckley on the Ryan Murphy-produced first-responder drama since its debut six seasons ago. While the show is ending its run on one network, it will be alive and well next season on ABC — the broadcaster that is owned by Disney, the parent company of “9-1-1” studio 20th Television, which not too long ago was owned by Fox — so Stark isn’t saying goodbye to his character, so much as a family he and his co-stars have established behind-the-scenes. Here, Stark discusses with Variety his reaction to the move to ABC for Season 7, and if he thinks spinoff “9-1-1: Lone Star” (which also hails from 20th Television) remaining at Fox for its fifth season means the chance at another crossover episode between the two series is slim.

Fox unveiled its 2023/24 programming slate this morning and the writers strike was front and center.

Jennifer Maas TV Business Writer Disney+ shed another 4 million subscribers in the first three months of 2023, marking the Disney-owned streamer’s second consecutive quarterly drop after closing 2022 with its first-ever decline. On the bright side, the Mouse House also managed to narrow its streaming business losses by $400 million, down 26% year over year. On Wednesday, CEO Bob Iger and Co. beat Wall Street estimates for Disney’s quarterly earnings and revenue due to an impressive Jan.-March showing at the company’s theme parks. That win comes during a fiscal Q2, which concluded April 1, plagued by companywide layoffs, a looming (and now active) writers strike, and a turf war with Florida Gov. Rick DeSantis.

Jennifer Maas TV Business Writer Layoffs will be hitting 25% of employees across the Showtime, MTV Entertainment Studios and Paramount Media Networks groups in the U.S. Tuesday, following months of internal deliberations about integration amid Showtime’s rebranding into Paramount+ With Showtime. Additionally, MTV News — which was significantly affected by layoffs more than five years ago — will be shutting down. Other units, most of which are operations, will be shuttered as well. In a memo to staff, Showtime/MTV Entertainment Studios and Paramount Media Networks president Chris McCarthy said that, despite Paramount’s “success in streaming, we continue to feel pressure from broader economic headwinds like many of our peers,” and that “senior leaders in coordination with HR have been working together over the past few months to determine the optimal organization for the current and future needs of our business.”

Kristin Dolan, who took over earlier this year as CEO of AMC Networks, said the company is “very well positioned” to manage through the WGA strike.

Jennifer Maas TV Business Writer Nexstar reported its first-quarter 2023 earnings Tuesday, revealing its overall ad sales were down 6% year-over-year but its digital revenue increased by a record 16.5%, in part due to the inclusion of the CW Network in its offering. Wall Street forecast earnings per share (EPS) of $2.67 on $1.24 billion in revenue, according to analyst consensus data provided by Refinitiv. Nexstar reported diluted EPS of $2.97 on $1.26 billion in revenue. “Nexstar’s first quarter financial results once again outperformed consensus expectations across all key financial metrics including net revenue, Adjusted EBITDA and attributable free cash flow. All-time high quarterly distribution revenue and the benefit of The CW acquisition more than offset the cyclical year-over-year decline in political and Olympic advertising, resulting in record first quarter net revenues for the Company. We returned nearly 60% of first quarter attributable free cash flow to shareholders in the form of dividends and share repurchases.

Taking the mic for the second time in a week, Paramount Global CEO Bob Bakish explained why the company slashed its dividend and talked streaming, advertising and weathering a WGA strike.

Jennifer Maas TV Business Writer Warner Bros. Discovery CEO David Zaslav responded to the writers strike following the release of the company’s Q1 earnings report Friday, shooting down claims that some companies are “glad” that the the Writers Guild of America (WGA) is picketing instead of writing. “We’re not glad,” Zaslav said during an interview on CNBC’s “Squawk Box” on Day 4 of the writers strike. “In order to create great storytelling, we need great writers, and we need the whole industry to work together,” the WBD chief said. “And everybody deserves to be paid fairly. So our number one focus is, let’s try and get this resolved. Let’s do it in a way that that the writers feel that they’re valued, which they are, and they’re compensated fairly. And then off we go. Let’s tell great stories together.”

Warner Bros Discovery’s hour-long earnings call with Wall Street analysts Friday morning included nary a mention of the WGA strike, unlike many other such calls in recent days.

In the last hour, the AMPTP made its first public remarks since the writers went on strike, calling its offer “generous”.

unable to reach a deal in contract negotiations with the Alliance of Motion Picture and Television Producers before Monday’s contract expiration. Picketing began in New York City and Los Angeles on Tuesday.The strike involves a long list of concerns that the writers want Hollywood studios to address, from the low pay involved in writing streaming series to reining in “mini-rooms” used to skirt contractual pay practices to addressing the use of artificial intelligence.

Paramount CEO Bob Bakish said today that “writers are essential in creating content and… we hope we can come to a resolution that is good for everyone fairy quickly. But it’s also fair to say there is a pretty big gap today, and it’s really a multifaceted kind of bid and ask.”

Todd Spangler NY Digital Editor Shares of Paramount Global tumbled as much as 22% in early trading Thursday after the media conglomerate reported disappointing first-quarter 2023 results and slashed its dividend. Paramount posted a Q1 net loss of $1.12 billion, as revenue of $7.27 billion was down 1% on shortfalls in its TV media and filmed entertainment units. The company’s streaming business, which includes Paramount+ and Pluto TV, saw revenue rise 39% in the first quarter to $1.5 billion. However, the direct-to-consumer segment posted a loss of $511 million, growing 12% compared with the year-earlier period. The company said Paramount+ added 4.1 million subscribers in the quarter, coming to a total of 60 million overall.

Brian Steinberg Senior TV Editor Paramount Global said it would it cut its dividend as continued investment in streaming weighed on the company while it saw declines in its traditional revenue from advertising and cable distribution. The owner of CBS, Nickelodeon and the Paramount movie studio said its first-quarter loss came to nearly $1.23 billion, or $1.81 a share, compared with a profit of $775 million, or 58 cents a share, in the year-earlier quarter. Revenue was essentially flat, down 1%, on shortfalls in its TV media and filmed entertainment units, while its streaming operations saw revenue rise 39%. “We are focused on continuing to drive market-leading streaming growth while navigating a dynamic macroeconomic environment,” said Bob Bakish, the company’s chairman and CEO, in a statement.

Jennifer Maas TV Business Writer With major cost-saving initiatives in effect at Disney, Warner Bros. Discovery, Netflix, Amazon, Paramount and more mega media companies and economic uncertainty on Wall Street, the content spend free-for-all is definitely over. Today, the focus is turning to scalable franchises that work for in a multiplatform media world where Hollywood will get the biggest bang for more limited bucks. According to Perkins Miller, CEO of media company Fandom, the financial focus for the next 18 months should be on mining IP and franchises for all their worth. “My view is that, you don’t want to stifle innovation, I think creativity is incredibly important and you want to see that breakout show that is interesting or that movie that was greenlit because the story was so remarkable that it breaks the mold,” Miller said on the latest episode of Variety‘s “Strictly Business” podcast. “And I wouldn’t suggest that anybody should stop those kinds of activities. I think that are important, obviously, from a creative standpoint. But from an economic one, which is the question you’re asking, what is the most economically smart thing to do, I think the most economically smart thing to do is to focus on franchises and figure out your scaled production against them.”