Shares of the media conglomerate that owns CBS, Showtime,
Comedy Central, MTV, and other networks, which initially fell 3 manner, slipped
to a 6 manner loss as the company's two-hour presentation of its streaming
strategy continued after the markets closed.
ViacomCBS reported adjusted earnings per share of 26 cents
for October through December, below analyst projections of 43 cents.
The switch to Paramount, effective on Wednesday, was
announced as the company made a presentation to drum up excitement among
investors about its future strategy and programming.
"We know the opportunity at hand is massive, and we've
got the passion, the ambition and the discipline to deliver," Chief
Executive Bob Bakish said.
The company forecast it will have 100 million subscribers to
its streaming services by 2024, raising earlier guidance of 65 million to 75
million customers. To get there, spending on new streaming programming will
grow to more than $6 billion per year in 2024, the company said.
Executives announced a large slate of programming to help
draw new online customers who have several options from Netflix, Walt Disney,
and others.
Among them, ViacomCBS ordered a second season of upcoming
video game TV adaptation series Halo, a Yellowstone spinoff called 1932, and
two animated South Park movies every year through 2027.
Starting in 2025, all South Park episodes will be exclusively
available around the globe on Paramount+, executives said.
For younger viewers, the company will produce a Baby Shark
movie and a new Dora the Explorer series.
Tom Cruise, star of Paramount's Top Gun and Mission:
Impossible, franchises, appeared via video, saying he was "very, very
proud" of his 37-year relationship with the movie studio as an actor and
producer. Top Gun: Maverick is scheduled to hit movie theaters in May.
Starting in 2024, Paramount+ will become the exclusive home
for all of the company's theatrical movies after they play in cinemas.
The new Paramount name "will help advance our strategy
of harnessing all our strength and breadth in building the businesses of
tomorrow," Bakish and Chair Shari Redstone said in a memo to employees.
Earlier on Tuesday, the company said it added 9.4 million
global streaming subscribers in the fourth quarter, taking its total count to
56 million subscribers.
The company also benefited from the resumption of live
sports and a rise in affiliate revenue at its cable networks, which refers to
the fees collected from cable and satellite operators and online distributors.
Revenue rose 16 manner to $8 billion in the three months
ended December 31, compared with analysts' estimates of $7.51 billion,
according to IBES data from Refinitiv.
Operating income rose to $2.66 billion from $1.08 billion a year earlier. © Reuters
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