US studio’s chief exec says third-party deals can affect ability to attract talent
Paramount will not stop selling its shows to other streamers and networks, with chief executive David Ellison describing its distribution activities as an “incredibly meaningful” part of its business.
The US studio has been a frequent source of programming for buyers over the past decade, in a strategy that has sometimes seen some of its biggest IP sold to rivals.
Kevin Costner-starring Yellowstone was picked up by Peacock in the States, while a deal was struck with HBO Max and Netflix for South Park, leading to some querying the impact of such deals on in-house streamer Paramount+.
South Park has since been brought back into the Paramount fold following the acquisition of the US studio by Ellison’s Skydance, but the exec did not rule out future third-party pacts.
Ellison, who is in the midst of trying to tie up its $110bn acquisition of HBO owner Warner Bros Discovery, discussed his sales strategy on a Q1 earnings call and said deals with non-group companies would continue.
“There are certain series and shows that you’ll want to keep exclusively on your owned and operated platform, but there are other series that absolutely make sense to sell to third parties,” he said.
Ellison pointed to the theory that selling some IP – typically early seasons of longer running shows – to third parties could help drive audiences back to the newest episodes on Paramount+, adding that each deal was being “evaluated on a case-by-case basis.”
The chief exec also said third-party sales helped support the studio’s bid to attract talent.
“When it comes to a showrunner, for example, it’s really critical to be in a position in which you are offering that particular piece of talent with the most opportunities to get their show made. We think it is powerful from a platform perspective to say we can sell into our owned and operated [service].
“But if, for any reason, it doesn’t make sense for our owned and operated [service], we can also sell into third parties. We own those shows. They generate revenue for us. And it makes you a much more desirable place from a talent perspective.”
Ellison said the approach had “served us really well”, adding the company planned to retain the same strategy for “the foreseeable future.”
Revenue rising, subs disappoint
The comments came followed Paramount’s 2026 Q1 results, which saw total revenue up 2% on last year to hit $7.35bn versus expectations of $7.28bn. (Comparisons are on an adjusted basis following Skydance’s acquisition of Paramount last year.)
Net earnings were $168m (15c per share) as analysts expected, but Paramount+ subscribers were only up 700,000 to 79.6m, against expectations of 1m new additions.
DTC revenues ticked up 11% to hit $2.4bn, but the TV Media arm, which houses linear TV networks including CBS, saw revenues dip 6% to $3.7bn and miss Wall Street estimates of $4.1bn, as cord cutting continues.
Landman has become the most watched show ever on Paramount+, the company said, while series produced for third parties such as The Corrections for Netflix and upcoming Neuromancer for Apple TV among studio output highlighted.
Paramount added that it expects revenues to hit $30bn in 2026, with EBITDA of $3.8bn in 2026, while CFO Dennis Cinelli said that the WBD deal was making “steady progress”.
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