Paramount (PARA) is merging its Paramount+ and Showtime streaming services into one offering — dubbed "Paramount+ with Showtime" — as the company eyes a greater integration between linear television and streaming in an increasingly crowded landscape.
In an internal memo obtained by Yahoo Finance, and first reported by Variety, Paramount CEO Bob Bakish wrote to employees:
This new combined offering demonstrates how we can leverage our entire collection of content to drive deeper connections with consumers and greater value for our distribution partners.
This change will also drive stronger alignment across our domestic and international Paramount+ offerings, as international Paramount+ already includes Showtime content. And, very importantly, this integration will unlock operational efficiencies and financial benefits across our broader portfolio.
The new offering and name change will launch later this year and only involve the premium tier of Paramount+ and the SHOWTIME linear network in the U.S.
Bakish's memo did not outline any new pricing structures for the offering, but said additional details will be shared in the coming weeks. Paramount is expected to report quarterly results on Feb. 16.
Chris McCarthy, who serves as president and CEO of Showtime and Paramount Media Networks, explained in a separate staff memo the rebrand will allow Showtime to utilize more resources in order to build out the brand.
"To do this, we will divert investment away from areas that are underperforming and that account for less than 10% of our views," he added. "We have already begun conversations with our production partners about what content makes sense moving forward and which shows have franchise potential.”
Paramount stock was little changed in after-hours trading on Monday following the news.
Alexandra is a Senior Entertainment and Media Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at firstname.lastname@example.org