David Ellison Unveils Paramount’s First Earnings Report
David Ellison has made a significant move for Paramount, unveiling the company’s first earnings report under his leadership. The report, released on Monday, highlights the changes and ambitious targets set by Ellison, who took control of Paramount in early August 2023.
Paramount’s Strategic Overview
In a shareholder letter, Ellison emphasized that expanding its direct-to-consumer (DTC) operations is a top priority. He also announced a comprehensive strategic review, which will include evaluating the divestment of non-core assets, starting with Telefe in Argentina.
Financial Highlights
For the third quarter, Paramount reported:
- Revenue: $6.7 billion
- Operating Income: $324 million
- Net Loss: $257 million (though losses are decreasing post-Skydance takeover)
The company aims to achieve $30 billion in revenue by 2026, with an expected cost savings of $3 billion. This is an increase from the previously projected $2 billion.
Subscriber Growth
Paramount+ continues to grow, reaching 79.1 million subscribers, up from 77.7 million the previous quarter. Ellison announced plans to raise subscription prices in early 2026.
Investments and Innovations
Ellison detailed plans for next year’s incremental content investments, which will exceed $1.5 billion. These investments will focus on various areas, including UFC, scripted shows, and feature films.
Emphasis on Technology
The strategy aims to strengthen Paramount’s technological capabilities in response to competition from media companies in Silicon Valley. Ellison aims to integrate technology as a core competency without undermining creative workflows.
Employee Changes
To realign the workforce with new priorities, the company has commenced significant layoffs. So far:
- About 2,000 roles have been eliminated.
- An additional 1,600 positions are expected to be cut.
- Approximately 600 employees accepted buyouts linked to return-to-office policies.
Ellison has expressed the need for transparency regarding the reasons for these changes, which aim to address redundancies and focus on growth.
Future Directions
Since taking over, Ellison has actively pursued strategic partnerships and projects. Notably, he poached the Duffer brothers from Netflix and is working on a film adaptation of Call of Duty with Taylor Sheridan.
Ellison’s leadership comes in a time of transition, with assurances from Shari Redstone, the former owner of Paramount, that the new leadership will build on the company’s legacy for long-term success.
As Paramount navigates these transformative changes, the focus remains on sustainable growth and becoming a leader in the evolving media landscape.
