Image: Criminal Minds, CBS
Among the major legacy firms, Paramount Global is the most affected by changing structural forces in the media and entertainment ecosystem. In a beleaguered industry, there may not be another conglomerate as beleaguered as Shari Redstone’s media empire.
A combination of an unprofitable direct-to-consumer (DTC) segment, a faltering studio operation, and exposure to linear TV has made Paramount Global’s problems outweigh its many strengths, such as owning one of the most valuable TV libraries and the rights to NFL for another decade to come. (Not having juicy theme park revenue to fall back on, à la Disney and Universal, also doesn’t help).
Paramount faces a dilemma regarding its future: should the company combine forces with a larger company, or dismantle and sell its various assets incrementally, becoming a supplier of content to other platforms in a competitive streaming industry? And what would Paramount+’s be role in any of these scenarios?
Paramount-owned networks are the main source of content for Paramount+. The four leading linear channels — Nickelodeon, CBS, MTV, and Comedy Central - are responsible for around one-third of the total demand for Paramount+’s entire TV catalog. CBS shows command more than one-fifth of on-platform demand. Most notably, these shows are made up of popular and rewatchable procedurals like Hawaii Five-0, NCIS, Criminal Minds and Blue Bloods.
This breakdown shows the platform's exposure to linear TV in at a time in which this model is rapidly declining. Paramount+ has popular originals, especially within the "Star Trek" and Taylor Sheridan franchises, but these do not yet provide a boost substantial enough for the platform’s TV catalog. Original shows are responsible for 14.7% of the on-platform TV demand, meaning they cannot support the entire streamer alone.
Paramount+ benefits largely from having access to titles from networks under Paramount Global’s corporative umbrella, providing the platform with a diverse library. Each network caters to a different niche. Analysis of the platform’s demographic distribution shows that CBS originals are more appealing to old and female audiences (with a few notable exceptions such as Criminal Minds and Big Brother, appealing to younger audiences, and Blue Bloods and 48 Hours with a predominantly male viewership). Comedy Central shows, on the other hand, skew towards an older and male viewer base. Paramount+ originals seem to draw older audiences across both genders.
MTV titles cater to young and female audiences on the platform, thanks to the network’s emphasis on reality TV. Most notably, The Challenge and Jersey Shore: Family Vacation were the most in-demand MTV shows on Paramount+ last quarter. For even younger audiences (both genders), Nickelodeon provides popular animations such as Avatar: The Last Airbender and The Loud House.
This diverse library is an asset for Paramount in a content supplier scenario. In a streaming landscape dominated by platforms owned by tech giants, segments of Paramount’s library could attract many potential buyers looking to enhance their streaming services and with more financial resources to expend.
