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Paramount’s Future Looks Grim Amid Perfect Storm of Declining Cable TV, Streaming Woes

The future doesn’t look very good for Paramount Global, the Hollywood giant that owns CBS, Paramount Pictures, Comedy Central, BET, Pluto TV and many other media properties.

Paramount Global’s financial outlook took a hit Friday when S&P Global placed Paramount Global on CreditWatch Negative, citing concerns about the company’s cash flow. The report blames “the continued deterioration of the terrestrial television ecosystem and the shift to lower-margin direct-to-consumer (DTC) streaming models.”

Like other traditional Hollywood studios, Paramount is feeling the pain of tens of millions of Americans canceling their cable TV contracts. At the same time, the studio’s streaming services, including Paramount+ and Pluto TV, continue to lose money at an alarming rate.

The bad news comes amid takeover rumors that have been swirling around Paramount for months. Among the nominees is David Ellison’s Skydance, which helped raise the latest round of funding. Mission Impossible movies and top gun: maverick.

This month, Paramount began laying off about 800 people, or 3% of its workforce, in an effort to cut costs.

The layoffs are the latest disaster in Hollywood, following similar moves at other media giants including Disney, NBC Universal, Amazon MGM Studios and Universal Music Group.

Hollywood is also feeling the pressure of an advertising market that remains depressed due to deteriorating consumer sentiment caused by President Joe Biden’s economic policies.

As reported by Breitbart News, Warner Bros. Discovery recently reported that its latest quarter’s financial results took a significant hit due to weak TV ad revenue.

Follow David Ng on Twitter @moon_ooooooooo. Any tips? Please contact us at dng@breitbart.com

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