Paramount CEO 'committed' to ending strikes as company adjusts CBS fall lineup
Paramount (PARA) CEO Bob Bakish weighed in on the ongoing double strike in Hollywood, stressing the "critical" importance of the content pipeline while also noting the significance of protecting the audience experience.
Last month, actors joined writers on the picket line for the first time since 1960.
"We're saddened that as an industry, we couldn't come to an agreement that would have prevented this. Our partnership with the creative community is critical to the health of our industry, so we remain hopeful for a timely resolution, and we are committed to finding a path forward," the executive said during the company's second quarter earnings call on Monday.
"At the same time, we have a responsibility to minimize disruptions to our audiences and other constituents. To that end, we've adjusted our CBS fall slate by leaning into the full power of Paramount's content capabilities," he continued.
Paramount announced last month that CBS will air "Yellowstone" reruns to help fill in the fall TV schedule, which will heavily rely on unscripted reality TV and game shows. Sports will also be critical to CBS's lineup.
Other new additions will include the Paramount+ series "SEAL Team," in addition to the sitcom "Ghosts," which was adapted to American television for CBS from the British series of the same name.
"The slate illustrates the strength of our global multi-platform asset base and strategy and it's one of the ways we're staying nimble," Bakish said.
Strike concerns weigh on media giants
Last month,SAG-AFTRA — the union that represents approximately 160,000 actors, announcers, recording artists, and other media professionals around the world — announced the strike after failing to negotiate a deal with the Alliance of Motion Picture and Television Producers (AMPTP), which bargains on behalf of studios including Warner Bros., Disney (DIS), Netflix (NFLX), Amazon (AMZN), Apple (AAPL), and NBCUniversal (CMCSA).
The Writers Guild of America (WGA), which represents about 11,500 television and movie writers, had called for a strike in early May. WGA leaders met with studio representatives on Friday to discuss restarting negotiations; however, no new negotiations have been set at this point.
Uncertainties remain the longer the strikes drag on — particularly surrounding film release schedules.
Late last month, Sony reshuffled its 2023-2024 film schedule, citing the strikes.
"Spider-Man: Beyond the Spider-Verse" — the sequel to the widely successful "Spider-Man: Across the Spider-Verse" — was quietly removed from the 2024 release calendar. It was expected to hit theaters on March 29, 2024.
Recent reports have said studios like Warner Bros. and Disney are also weighing changes to their respective slates as a direct result of the strikes.
Variety reported Warner Bros. is "strongly considering" pushing the highly anticipated "Dune" sequel to next year from its current Nov. 3 debut. Disney is reportedly weighing the same thing for films like "Wish" and "Poor Things," according to Bloomberg.
"With respect to our film slate, the good news is we have a significant number of films, of which production is complete," Bakish said, calling out completed films like "Killers of the Flower Moon," Jack Black's "Dear Santa," and John Krasinski's "A Quiet Place: Day One."
"Strikes do present some marketing challenges [and it's] something we're working to assess with respect to our release strategy. But again, we're well stocked," he continued, explaining Paramount+ is also in good shape, although there will be certain streaming originals that will have to be moved to 2024 due to strike-related production delays.
Still, the executive warned problems will arise the longer the strike drags on. Paramount CFO Naveen Chopra added that it's still "too early" to estimate the full impact.
"It all comes down to duration," Bakish added. "I want to reiterate that we're hopeful that we can solve this as an industry sooner rather than later because we'd all like to get back in the content production business. But in the near term, we're working to mitigate the impact to our consumers and other constituents."
Paramount reported second quarter earnings that beat estimates as streaming losses narrowed.
Free cash flow came in at $210 million in the quarter, "which included modest impact from the strikes," Chopra said. The executive added the company anticipates continued delays in production for the duration of the strikes.
"As such, we estimate free cash flow in the back half of the year will be significantly higher than previously expected," he continued.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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