The company also plans to implement a unified technology stack across Paramount+, Pluto TV, and BET+. So that it can drive cost efficiency and improve performance across its streaming platforms.
Paramount Skydance has announced plans to invest over $1.5 billion in incremental programming next year. It aims to expand its streaming video business and revive its film studio.
This news was announced after the company reported its first quarterly results after the merger of Paramount Global and Skydance Media in August, valued at $8.4 billion.
The newly established company is projected to earn a total revenue of $30 billion in 2026, with the expectation that the streaming business will become more profitable and the company will show great operational efficiency. Investors have responded positively, and its shares have increased by 5% in after-hours trading.
The merger of Paramount Global and Skydance Media has resulted in a new leadership team within the company. CEO David Ellison has quickly moved to restore the studio. He has already shown many major wins, such as getting the distribution rights for a new James Mangold heist film starring Timothée Chalamet after a fierce bidding war, getting the “South Park” creators Matt Stone and Trey Parker in a five-year exclusive deal, and partnering with Activision to bring its mega-popular “Call of Duty” video game to the big screen.
In a letter to investors, Ellison stated that the entertainment industry is undergoing a generational transformation and that Paramount is committed to leading the evolving industry, rather than just adapting.
In his letter, he discussed streamlining Paramount Skydance studio and distribution operations under one leadership. It was aimed at streamlining and restoring the studio, particularly after its 2025 film slate underperformed.
The company also plans to implement a unified technology stack across Paramount+, Pluto TV, and BET+. So that it can drive cost efficiency and improve performance across its streaming platforms.
According to eMarketer senior director Jeremy Goldman, Ellison’s approach was not about Hollywood nostalgia but about proving that a legacy studio can move with the speed of a tech company. He defended the claim that he is combining consolidation with investment, betting on the belief that a smaller company can achieve more growth than a large predecessor.
Paramount Skydance has also explored buying Warner Bros Discovery. It has shown a desire to expand by submitting three bids to take over its film and television studio, the HBO Max streaming service, and cable networks such as CNN and TNT.
Ellison declined to comment on the reports during the recent investor call, but when it comes to acquisitions, he states that the company does not view them as essential, instead weighing opportunities on a “buy versus build” basis.
Its assets include the CBS broadcast network, its flagship film studio, and cable channels like Comedy Central, Nickelodeon, and MTV.
The company posted income of $6.7 billion for the third quarter, which was below analyst expectations of $6.97 billion.
The company’s streaming income increased 17% year-over-year, due to the continued growth of Paramount+. However, television income declined 12% due to a decline in advertising sales, while the film division saw a 30% increase in revenue.
Paramount has raised its cost-cutting target to at least $3 billion, up from its original goal of $2 billion. The company is reducing its workforce costs, so it has announced layoffs of approximately 1,600 employees as it divests from Telefe in Argentina and Chilevision in Chile.
They have laid off employees, in addition to 1,000 previous layoffs in late October, and 600 employees accepted voluntary severance rather than returning to in-person work.
With these changes and investments, Paramount Skydance is betting on a streamlined, agile approach to capture its place at the forefront of the rapidly changing media industry.