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David Ellison’s Paramount Skydance reported its first quarterly earnings below its new identify, revealing an organization nonetheless deep in restructuring. The short-term outlook stays targeted on value efficiencies, at the same time as Ellison emphasizes long-term funding in content material.
The corporate posted $6.7 billion in income for the July–September quarter, basically flat year-over-year and barely beneath Wall Avenue expectations. Streaming income from Paramount+ rose 17 % to $2.17 billion, offset by a 12 % decline in TV promoting income. Paramount Skydance recorded a internet lack of $257 million, largely resulting from merger-related bills.
Paramount+ added 1.4 million subscribers within the quarter, bringing its international whole to 79.1 million. The hit present South Park was cited as the highest driver of recent signups. Whereas Paramount+ continues to develop, it stays a mid-tier participant in comparison with giants like Netflix, which boasts greater than 300 million international subscribers.
Subscribers, nevertheless, face larger costs forward. Paramount+ will elevate charges in January 2026, partly to cowl prices from its new seven-year, $7.7 billion UFC rights deal. The ad-supported plan at the moment prices $7.99 monthly, matching Netflix’s advert tier, whereas the ad-free plan prices $12.99 monthly, beneath Netflix’s $17.99 ad-free worth.
In the meantime, cost-cutting continues. Executives confirmed plans to remove 1,600 jobs—about 9 % of whole workers—as a part of a broader effort to cut back $3 billion in bills by 2026. The layoffs will have an effect on movie, TV, streaming and company divisions.
Paramount doubles down on content material spending
Regardless of the cuts, Ellison reiterated his dedication to content material funding. “We anticipate to make incremental programming investments in 2026 in extra of $1.5 billion, which incorporates our investments within the UFC, Paramount+ originals and third-party catalog licensing and the ramp in our movie slate,” he mentioned on an earnings name yesterday.
Ellison acknowledged that Paramount’s 2025 movie slate is underperforming, requiring what he described as a “recalibration.” A lot of the weak point, he famous, stems from prior management’s reliance on reboots of older IP that did not resonate with audiences. The Smurfs reboot, for example, struggled to recoup its manufacturing and advertising and marketing prices. The studio now goals to prioritize high quality over amount in its upcoming movie lineup.
Latest bulletins underscore that shift. Paramount Skydance has inked a five-year unique deal with South Park creators; a four-year partnership with Stranger Issues creators, the Duffer Brothers, for movie and TV initiatives; and plans for the first live-action adaptation of the online game franchise Name of Obligation, directed by Peter Berg and written by Taylor Sheridan. (Ellison has described himself as a “lifelong fan” of the video games, having spent “numerous hours” taking part in them.)
Starting in 2026, Paramount intends to launch a minimum of 15 movies yearly, up from roughly 11 to 14 in recent times.
No rush for WBD
Inevitably, Warner Bros. Discovery got here up in the course of the earnings name. Based on Selection, Ellison had reportedly informed associates forward of the Paramount–Skydance merger approval that he was additionally eyeing one other goal on the time: “We’re going after Warners.”
Requested whether or not a merger with WBD stays a precedence, Ellison mentioned there’s no rapid want for an additional deal. “It’s vital to know that there’s no must-have for us. We actually take a look at this as buy-versus-build, and we completely have the power to construct to get to the place we need to go,” Ellison mentioned. “We consider we are able to obtain our streaming objectives, that we are able to drive enterprise effectivity, and create worth and long-term free money circulate technology all by the constructing.”
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