Paramount CEO: 'We’re pulling all these levers' to keep content flowing amid Hollywood strike
Paramount (PARA) is walking a fine line as it works to move forward with programming amid the ongoing Hollywood actors and writers strikes.
"We’re saddened that we couldn't come to a resolution with SAG and the writers to avert this situation," Paramount CEO Bob Bakish told Yahoo Finance Live (video above) on Wednesday at the Goldman Sachs Communacopia and Tech Conference in San Francisco. "We’re pulling all these levers to keep people entertained and keep our entertainment content compelling."
Hollywood writers have been on strike since May after the Writers Guild of America (WGA)‚ which represents thousands of television and movie writers, failed to reach an agreement with production studios. In July, Hollywood actors joined writers on the picket line, seeking better compensation from streaming residuals and more protections surrounding the role of artificial intelligence in media and entertainment.
As the work stoppage continues, adding to job losses, film delays, and economic costs, Paramount is working to keep the content lights on. Bakish walked Yahoo Finance through that plan.
"We’re pulling product [from] international, like the UK version of 'Ghosts,'" he said. "We're pulling product from streaming like 'SEAL Team,' which used to be a CBS show, went back to Paramount Plus, and is now going back to CBS. Then there’s Yellowstone, which we were talking about before we went on air, which will run from Episode 1, coming out of 60 Minutes."
With the two strikes showing no sign of ending soon, Bakish and Paramount are already looking ahead into 2024.
"Obviously, we're now in a strike, … and we're hopeful that we can get to a resolution, but at the same time, we have a responsibility to consumers, people like you, and our distributors to engage people with great content," Bakish said. "We’ll just have to see how long this duration of strike goes, and, yes, that affects films in '24."
"The good news is that we have a number of films in the can, so we’re good for a while," he added, "but over time, we’ll have to see how to navigate it."
Some analysts on Wall Street seem convinced that Paramount will be able to ride out a number of challenges facing the entertainment industry.
"What we like most about PARA's strategic position is its diversified [revenue] streams with multi-decade relationships with theater owners, linear TV MVPDs, streaming platforms, etc," Needham analyst Laura Martin wrote in an Aug. 8 note. "PARA's linear TV business represents PARA's mature cash cow that is funding its high-growth [direct-to-consumer] streaming businesses. We believe that to win, [subscription video on demand] services must have news and sports, ... and PARA has both."
Paramount stock is down over 20% year to date.
Read more coverage of the 2023 Goldman Sachs Communacopia + Tech conference:
CrowdStrike CEO: 'Microsoft is always going to be a competitor'
Goldman Sachs chief economist: US consumer won't break in 2024
Potential FTC antitrust suit against Amazon may hang over the stock: Analyst
Disney must show turnaround success for its stock to rise from the ashes: Analyst
Yahoo Finance's Alexandra Canal contributed to this story.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
