As a combination of Showtime and Paramount+, we have some answers

January 31, 2023

Showtime’s cable channel survived this round of integration, but it seems some associates — and a Paramount+ plan — didn’t.

Paramount Global is making things (even more) official between Showtime and Paramount+. “Sometime ‘later this year,’ the Showtime linear television channel will be rebranded as ‘Paramount+ with Showtime,'” the company said Monday afternoon. The existing ad-free Paramount+ “Premium” tier without Showtime ($9.99/month) will be discontinued; the version with Showtime ($14.99/month) will also be known as Paramount+ in addition to Showtime, although the name makes more sense in this setup.

Paramount+ also has ad-supported plans for what it calls the “Essential” tier, which offers the option ($11.99) and without ($4.99) Showtime. With the rebranding, Showtime OTT ($10.99/month) and Showtime Anytime (an add-on to OTT or free with a Showtime cable package) will be “sunset” as separate apps, IndieWire said. “Throw it in the trash.”

We asked if the prices of the continuing plans would remain the same and were told that we would have more information on this in the coming weeks.

The combination of brands means that certain Paramount+ originals will air on Showtime’s linear channel. It’s also the penultimate step toward Showtime’s complete folding into Paramount+, which would mark the end of the linear channel. The two previously teamed up through a Showtime slot within Paramount+.

Paramount Global CEO Bob Bakish described the platform merger in a memo to staff, obtained by IndieWire, as “the first of its kind to integrate streaming and linear content in this way.”

“This new combined offering demonstrates how we can leverage our entire content collection to create a deeper connection with consumers and create greater value for our distribution partners,” he wrote. “This change also results in stronger alignment of our domestic and international Paramount+ offerings, as international Paramount+ already includes Showtime content. And very importantly, this integration unlocks operational efficiencies and financial benefits across our broader portfolio.”

“Billions”

Laurence Cendrowicz/Showtime

Cost cutting is all the rage these days, so synergies would be greatly appreciated. That “operational efficiency” is what scared the employees Bakish emailed this afternoon, as the term often means layoffs.

“We know this change brings uncertainty to the teams working on these brands and businesses,” Bakish wrote. “We are committed to being as transparent and thoughtful as possible throughout this process and expect to share more details in the coming weeks.”

Bakish will host a town hall in Los Angeles on Feb. 23, where employees will take questions.

In addition to this news, Showtime also picked up two shows, “American Gigolo” and “Let the Right One In,” and canceled “Three Women,” starring Shailene Woodley; now being shopped to other homes.

Last September, Paramount Global said it had “nearly” 67 million global direct-to-consumer subscribers. Of that, 46 million came from the main streaming service Paramount+. The company is no longer issuing subscriptions to Showtime and Showtime OTT (the stand-alone streaming app). Subscribers will be notified by the end of 2022, February 16, when Paramount Global reports fourth quarter earnings.

Wall Street was unaffected by Monday’s news. Shares of Paramount Global ( PARA ) are down a few cents in after-hours trading.

See Bakish’s full memo to staff below.

Jeremy Renner in ‘The Mayor of Kingstown’

Emerson Miller/ViacomCBS

Team,
Almost a year ago, we announced that ViacomCBS would become Paramount – leveraging the strength of our combined portfolio to become one integrated company. Since then, I’ve been extremely proud of the diverse ways we’ve worked together across platforms, brands and continents to consistently be a global leader in the future of entertainment.

In the same vein, I am pleased to share the next step in our company’s evolution. Today, we’re announcing that we will fully integrate SHOWTIME into Paramount+ later this year across both streaming and linear platforms—bringing viewers even more popular franchises and hit shows. To reflect this change, both Paramount+’s premium streaming tier and SHOWTIME’s linear network will be “Paramount+ with SHOWTIME” in the US.

SHOWTIME has captivated audiences for decades with ambitious original series that have defined premium content and fandom. His name has always stood for critically acclaimed, ground-breaking entertainment and creative excellence. Now that SHOWTIME content is integrated into our flagship streaming service, and Paramount+ originals join the linear offering, Paramount+ will be the definitive multi-platform brand in the streaming space – and the first of its kind to integrate streaming and linear content in this way. .

This new combined offering demonstrates how we can leverage our entire content collection to build deeper relationships with consumers and create greater value for our distribution partners. This change results in stronger consistency in our domestic and international Paramount+ offerings, as the international Paramount+ now includes Showtime content. And very importantly, this integration unlocks operational efficiencies and financial benefits across our broader portfolio.

Chris McCarthy will continue to lead the SHOWTIME studio and oversee network operations for the linear channel. In parallel, he works closely with Tom Ryan, who oversees the “Paramount+ with SHOWTIME” streaming business.

While we’re confident this is the right move for our company, consumers and partners, we know this change creates uncertainty for the teams working on these brands and businesses. We are committed to being as transparent and thoughtful as possible throughout this process and expect to share more details in the coming weeks.

In the meantime, I would like to ask for further focus. Thanks to your hard work, dedication and partnership, Paramount+ with SHOWTIME is set up for success. Thanks as always for all you do.

Best,
Bob