Paramount Global is feeling optimistic about its ability to create successful content after a string of recent box office hits, including Top Gun: Maverickand on the Paramount + streaming service, such as Alonemanagement said during the company’s second quarter earnings conference call Thursday.
“Nowhere is our popularity more evident than at the box office,” President and CEO Bob Bakish told analysts. “Look no further Top Gun: Maverick, which is already the biggest movie of 2022 and our fifth # 1 title. 1 this year. Indeed, Top Gun: Maverick it just grossed $ 1.3 billion at the global box office and became one of the 10 best national films of all time. Here we leveraged our portfolio brands, including CBS and MTV, to execute a major corporate consumer campaign that resonated with audiences around the world – a strategy that has proven highly effective when used against our major resources “.
He also advertised the other four No. 1 of the company at the 2022 box office, namely Donkey forever, He shouted, The lost city And Sonic the Hedgehog 2, saying their success was not a foregone conclusion, but required “the right strategy and strong execution” from the company. “In the early stages of the pandemic, we were very selective with our releases, holding onto some films until market conditions improved. Although we were unable to release Top Gun: Maverick And The lost city before, we resisted because we knew these phenomenal stories would bring audiences back to the cinema. That turned out to be the right call. Paramount continues to shine at the box office with numbers that have exceeded even our expectations. And we are excited about the future. We will conclude this spectacular year with that of Damien Chazelle Babylonwith Brad Pitt and Margot Robbie, which will begin its theatrical release in December ”.
The Paramount CEO also touted the studio’s slate for 2023, “anchored by new commercial interpretations of some of our most popular and new franchises, from Transformers And Teenage Mutant Ninja Turtles toungeon and dragons And Paw Patrolto name but a few. ”
Bakish also praised the success of originals such as Alone for driving Paramount + and its earnings for users. “Viewers hungry for incredible storytelling are also showing up in increasing numbers at our flagship streaming service,” she said. “The diversity and quality of our content is unrivaled, especially on Paramount +.”
The executive then indicated the data suggesting the streamer’s appeal. “Paramount + is the # 1 premium service. 1 in the United States for net subscriptions and additions of subscribers, both this quarter and year-to-date. And based on other third-party data, Paramount + is also the most popular premium streaming service in the US to add as a switcher. This means that people who have abandoned a service in the past 12 months are more likely to add Paramount + than any other service, once again proof that we are gaining market share. “
Overall, Bakish said: “Our content constantly attracts and entertains the mass audience. When I say public, I don’t just mean kids or adults, I mean the whole family, not just the shores, but the whole country, not just the US, but the whole world, not just the streaming audience, but the TV, theater and streaming audiences. Part of the reason is that we not only popularize content, but also content by leveraging our powerful platforms. “
Also in Thursday’s phone call, Paramount CFO Naveen Chopra reiterated the goal of spending $ 6 billion on streaming content in 2024, with streaming losses peaking in 2023. With streaming revenue and the number of subscribers growing, “our investment in content is working,” he said. .
When asked if Paramount + could raise its subscription prices over time, which Netflix has consistently done, despite high inflation. “Price will be part of the equation. And even if we don’t have any upcoming price changes, they will happen in the future, “he replied.” We will do so by also taking into account the evolution of our content offerings, looking at what kinds of packages and other promotional opportunities are available to our customers and, of course, thinking about our value proposition relating to competing services where I indicate I think today we offer a very strong value position ”.
And Bakish received a question about a major recent cricket rights deal concluded by the Paramount Viacom18 joint venture in India, making it the new online home of Indian Premier League cricket for the next five years, while Disney’s Star India will remain there. sports broadcaster on TV. “This is a deal that was made by our joint venture in India … which recently had a transaction in which they brought Bodhi Tree [the investment company backed by James Murdoch and Uday Shankar] as an investor and capital infusion, “Bakish said.
The executive added: “And I leave everything to the joint venture. But what they said is the streaming rights that can be part of a streaming offer for the Indian market, that one [the] the team will be launched in 2023. We also said that Paramount + will be launched with it, essentially, as another form of our grouping level. “