The Paramount-HBO Max Pitch Scramble: Navigating the Post-Merger Landscape
The entertainment industry is abuzz with the potential merger of Paramount and Warner Bros. Discovery (WBD), a move that could reshape the streaming landscape. This deal, if finalized, will combine Paramount+ with HBO Max, creating a formidable force in the streaming wars. But the road to this merger is not without its hurdles, and the latest development involves a legal challenge from state attorneys general, led by California's Rob Bonta, aiming to block the deal.
Despite these obstacles, the merger's potential impact on the industry is undeniable. The combined service would boast an impressive 219 million subscribers, challenging Netflix's dominance. This scale-up, however, comes with its own set of challenges, particularly in the realm of leadership. The question of who will lead this new streaming giant hangs in the balance, with Paramount's Cindy Holland and HBO's Casey Bloys both in the running.
In the meantime, the industry is on hold, with a wait-and-see attitude prevailing among agents and producers. The uncertainty surrounding the merger has led to a pause in development, with a sense of 'so what?' lingering in the air. This is particularly evident in the recent Upfronts, where WBD's presentation was light on HBO Max, leaving many with the impression that everything is about to change.
However, unlike Paramount, which froze development before its acquisition by Skydance, HBO/HBO Max is continuing its programming efforts. Yet, the appetite for new content appears limited, according to industry sources. This contrasts with the more open approach of Paramount+, which has been actively seeking new projects after a two-year freeze.
The key to understanding the current climate lies in the recent MoffettNathanson Media, Internet & Communications Conference. Here, Dennis Cinelli, the new Paramount Skydance CFO, offered a glimpse into the future of the combined Paramount+/HBO Max streamer. He emphasized the importance of leveraging the global content portfolio, particularly sports and premium content, while also adding local flavor where needed.
Cinelli's comments highlight a strategic shift towards international markets and a desire to be a local buyer for creators. This approach could significantly impact the pitching landscape, with a focus on genres that complement the Taylor Sheridan universe, including female-driven thrillers. Additionally, CBS's development slate and its buying preferences are worth noting, with certain shows taking up a significant portion of network hours.
One notable trend is Paramount+'s decision to 'nix' comedy for now, a strategic move that could have implications for pitch strategies. Meanwhile, HBO drama execs are seeking fresh ideas beyond IP, indicating a shift towards original content. The challenge for HBO Max, however, is its reputation as a 'tough place to sell', requiring pitches that adhere to a specific model.
As the merger questions loom, the industry awaits the outcome, knowing that the post-merger landscape will be vastly different. The key for sellers and producers is to navigate this uncertain terrain, adapting their strategies to the evolving dynamics of the combined Paramount/WBD streaming service.
