Paramount Global Class B (PARA)

History and Background

Paramount Global (formerly ViacomCBS) was formed in 2019 from the re-merger of CBS Corporation and Viacom. Its roots trace back to CBS's founding in 1927 and Viacom's creation in 1952 as CBS's syndication arm. Key milestones include various acquisitions and the launch of streaming services.

Core Business Areas

• TV Entertainment: Produces and distributes television content across various networks, including CBS, Showtime, and MTV.
• Filmed Entertainment: Produces and distributes feature films under the Paramount Pictures banner.
• Direct-to-Consumer: Operates streaming services like Paramount+ and Pluto TV, offering a mix of original and licensed content.

Leadership and Structure

Bob Bakish (CEO). Organizational structure includes distinct divisions for TV Entertainment, Filmed Entertainment, and Streaming, each with its own leadership team reporting to the CEO.

Key Offerings

• Paramount+: Streaming service offering a wide range of content, including original series, movies, and live sports. Competitors include Netflix, Disney+, and Amazon Prime Video. Subscriber numbers reported at approximately 63 million globally (Q1 2024).
• CBS: Broadcast television network known for shows like 'NCIS' and live sports. Competitors include NBC and ABC.
• Paramount Pictures: Film studio responsible for franchises like 'Mission: Impossible' and 'Transformers'. Competitors include Disney and Warner Bros.

Industry Overview

The media and entertainment industry is undergoing a significant transformation due to the rise of streaming, changing consumer habits, and increased competition.

Positioning

Paramount Global is positioned as a major player in the media landscape, with a diversified portfolio of traditional and streaming assets. Its competitive advantage lies in its vast library of content and its ability to create original programming.

Total Addressable Market (TAM)

The global media and entertainment market is estimated to be worth over $2 trillion. Paramount is well-positioned to capitalize on growth, targeting a substantial portion of the market through its diverse offerings and strategic initiatives.

Key Competitors

• NFLX
• DIS
• WBD
• CMCSA

Competitive Landscape

Paramount Global faces intense competition from larger, more established players in the streaming market. Its competitive advantage lies in its content library and brand recognition. However, it needs to improve its streaming profitability to compete effectively.

AwesomenessTV

• Year: 2018
• Acquisition Price (USD millions): 0
• Strategic Rationale: Strengthened digital content and reach with Gen Z audience.

Historical Growth: Growth has been moderate in recent years, driven primarily by the expansion of streaming services.

Future Projections: Analysts project continued growth in streaming revenue, but overall profitability remains a concern. Future growth depends on Paramount+'s ability to attract and retain subscribers.

Recent Initiatives: Focusing on streaming growth, cost-cutting measures, content investment, strategic partnerships.

Paramount Global is navigating a challenging media landscape with its streaming ambitions facing stiff competition. While it possesses valuable content and established brands, profitability remains a concern. Paramount needs to execute its streaming strategy effectively and manage its debt to achieve sustainable growth. Continued growth in streaming is crucial for the long-term success of the company.

Data Sources:

• Company filings, analyst reports, market research reports

Disclaimers:

This analysis is based on publicly available information and is not financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.