Yahoo News Paramount Plans to “Optimize” Content Spend Around Audience Segments in Rethink of Streaming Strategy
Paramount Global is embarking on a rethink of its streaming content strategy, one that executives suggest will lower the cost of content (to help profitability), while also reducing churn among its subscribers.
On the company’s earnings call, CEO Bob Bakish and CFO Naveen Chopra outlined the plan, with Bakish referencing the company’s “evolving content slate.”
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“As Bob pointed out, there’s no question we make great content, but it matters just as much that we do it efficiently,” Chopra told analysts on the company’s earnings call.
To that end: “In streaming, we’re focused on optimizing spending and content and marketing, the two largest expense categories in our streaming P & L,” he added.
Chopra said the company is using its internal data to change its content slate, and will focus on “carefully-defined specific audience segments.” The company, Chopra noted, has “evolved our programming strategy to super serve them in an even more efficient manner.”
“We’re accomplishing that goal by leveraging content across platforms more and more by leaning into franchises and now that we’ve got more data, we’re increasingly able to use analytics to understand how to super serve these key audience segments,” the CFO said. “And so we can get away from — call it a volume focused game — and be more focused on making sure that we have the right content for the right audience at the right time.”
That includes the decision earlier this year to take writedowns on content removed from Paramount+.
“I think it also goes to the fundamental premise behind our thesis, and that is broad,” Bakish said. “We talked about Paramount+ as news, sports and a mountain of entertainment. And the fact of the matter is when we look at the data under the covers, we are seeing conjoined analysis if you will of sports viewers watching entertainment programming… For example, we probably need to do less for that viewer who’s an NFL viewer in the fall and do more for that viewer outside the fall because we can rely on the NFL. That’s an example of fine tuning our strategy.”
To that end, the release strategy for streaming programs will also change.
“Our programming slate is designed to ensure that each key audience segment has compelling content to enjoy throughout the year,” Chopra says. “Not too little, but also not too much.”
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