Comcast and Paramount’s SkyShowtime could be closed down

Comcast and Paramount’s European streamer SkyShowtime could be shut down after the two parent companies launched a strategic review of the joint venture business.

No decisions have yet been made, but in a letter from the SkyShowtime board - shared by chief exec Monty Sarhan to employees and seen by Broadcast International - the possibility of closure or sale was noted.

“SkyShowtime operates in one of the most competitive markets in our industry,” the letter read. “Despite the excellent work of the team and the strength of what you and the team have built, the landscape continues to evolve rapidly, and remains highly challenging.

“Against that backdrop, SkyShowtime’s shareholders are commencing a review of strategic options for the business, which includes the possibility of a wind down. No decisions have been made, and all options remain under consideration.” 

SkyShowtime was launched in 2022 and operates in more than 20 countries across the Nordics, Iberia, CEE and the Netherlands.

However, its future has been unclear since David Ellison acquired Paramount, while the company’s subsequent deal for Warner Bros Discovery has fuelled further uncertainty at the streamer, which has struggled to turn a profit.

A person familiar with the deal noted that the review is ”entirely unrelated” to the porential WBD transaction, adding that it “is a joint review by both shareholders.”  

Broadcast revealed last month that a flurry of senior execs had left and that insiders were questioning its future, with suggestions that the service could ultimately be folded into Paramount+.

The board’s letter issued today added that the “most important question” it raises “is what it means for the SkyShowtime team,” adding that the update was “the beginning of a dialogue, not the end of one”.

The streamer remains in operation and the SkyShowtime board said any proposals affecting staff would follow due process as per each country’s requirements.

“Final decisions will be made after those conversations have taken place,” it added.

In an accompanying note from Sarhan, the chief exec wrote: “I know this news creates uncertainty and, as we work through what comes next, my priority and that of the leadership team, is to be there and support all of you.

“Together, we have created a community and culture with empathy, opportunity, and innovation at its heart. Whatever comes next, we will all continue to be there for one another.”

SkyShowtime offers a raft of shows from Paramount and Comcast divisions including Universal Pictures, Paramount Pictures, Nickelodeon, DreamWorks Animation, Paramount+, Showtime, Sky Studios and Peacock, as well as originals.

Titles range from flagship series such as Dexter, House, Star Trek and Yellowstone, to The Office, MobLand, The Day of the Jackal and Tulsa King.

News of the strategic review was broken by The Hollywood Reporter.