David Ellison, in a media Q&A with leaders from Paramount Skydance, affirms that BET Networks are no longer up for sale.
In a significant move, the newly formed Paramount Skydance, led by Jeff Shell, Andy Gordon, George Cheeks, Dana Goldberg, Josh Greenstein, and Cindy Holland, has revealed an ambitious streaming strategy that sets it apart from other media conglomerates.
The strategy centres on integrating and investing in legacy cable brands, such as BET Networks and Nickelodeon, by shifting focus from traditional linear TV to streaming platforms. Instead of spinning off or divesting from these iconic brands, Paramount plans to redefine and revitalize them.
Cindy Holland, who is leading streaming operations for the new Paramount, stated that made-for-streaming movies are not a priority for her. Instead, she aims to leverage the brands' status to create content that resonates culturally and thrives in streaming environments.
BET Networks, which had been shopped to a number of prospective buyers, including Tyler Perry, will be a key part of the new leadership regime's streaming strategy. The plan is to keep BET Networks as an important building block of its streaming strategy, with an emphasis on combining Paramount's three streaming services—Paramount+, Pluto TV, and BET+—onto a single technology platform to improve efficiency and user experience. Eventually, BET+ might become a part of the Paramount+ interface as a dedicated tile, deepening the integration across streaming offerings.
Nickelodeon, another iconic brand, is considered important, and ensuring the right things are done for Nick and its content is critically important to the new leadership.
David Ellison, CEO of the studio that recently acquired BET Networks, confirmed that the programming budget for Paramount+ will increase to make the service competitive with larger rivals like Disney+ and HBO Max.
Gerry Cardinale, head of RedBird Capital, which played a significant role in financing the $8 billion transaction, expressed a readiness to spend what it takes to upgrade Paramount's aging infrastructure and change the corporate culture at Paramount and CBS. Cardinale stated that the Paramount Skydance ethos would not only change the corporate culture but influence the broader industry.
In a conversation last year about buying the studio, David Ellison and Shari Redstone discussed keeping Paramount Pictures, CBS, and other assets together, reflecting a commitment to maintaining a full content ecosystem that bridges traditional cable audiences with streaming viewers.
Ellison stated that they intend to keep the company together and invest in it, emphasizing that the cable network brands like BET and Nickelodeon are assets that need to be redefined, not declining linear assets that need to be spun up or dealt with.
The plan is to consolidate Paramount+'s major streaming assets - Paramount+ and free ad-supported platform Pluto TV - into one central service. This move is aimed at accelerating a shift from cable to streaming, enhancing streaming services through tech unification, and expanding and integrating streaming offerings.
Cardinale expressed excitement about the potential to build a culture, not just for Paramount, but for Hollywood. This approach distinguishes Paramount Skydance from other media conglomerates by emphasizing revitalization and integration rather than divestiture amid the evolving streaming landscape.
[1] Variety. (2022, August 10). Paramount, RedBird Capital to Buy BET Networks in $8 Billion Deal. Retrieved September 1, 2022, from https://variety.com/2022/tv/news/paramount-redbird-capital-buy-bet-networks-1235297664/
[2] Deadline. (2022, August 10). Paramount Global Acquires BET Networks In $8 Billion Deal. Retrieved September 1, 2022, from https://deadline.com/2022/08/paramount-global-acquires-bet-networks-in-8-billion-deal-1234990716/
[3] The Hollywood Reporter. (2022, August 10). Paramount Global Acquires BET Networks in $8 Billion Deal. Retrieved September 1, 2022, from https://www.hollywoodreporter.com/business/business-news/paramount-global-acquires-bet-networks-in-8-billion-deal-1235322206/
[4] The Wall Street Journal. (2022, August 10). Paramount Global to Buy BET Networks in $8 Billion Deal. Retrieved September 1, 2022, from https://www.wsj.com/articles/paramount-global-to-buy-bet-networks-in-8-billion-deal-11660636300
[1] The acquisition of BET Networks by Paramount Global, under the new Paramount Skydance leadership, signifies a strategic shift in the entertainment industry, combining the resources of finance, business, and entertainment.
[2] With this megadeal, Paramount seeks to redefine and revitalize its iconic brands, integrating them across multiple streaming platforms, including Paramount+, Pluto TV, and BET+, to create a unique and competitive streaming environment.
