David Ellison's Paramount Skydance Posts First Earnings Report as Newly Merged Studio
The newly merged studio of Paramount and Skydance has released its first quarterly earnings report, revealing a company still navigating heavy restructuring. Despite posting revenue of $6.7 billion for the July-September quarter, which is essentially flat year-over-year, the short-term outlook remains focused on cost efficiencies.
Ellison emphasized long-term investment in content, stating that the company expects to make incremental programming investments exceeding $1.5 billion in 2026. However, some film releases have underperformed, including a reboot of "The Smurfs," which struggled to recoup production and marketing costs. The studio now aims to prioritize quality over quantity in its upcoming film lineup.
Paramount+ reported a 17% increase in streaming revenue to $2.17 billion, driven by the addition of 1.4 million subscribers, bringing the global total to 79.1 million. However, prices are set to rise next year, partly to cover costs from a new seven-year, $7.7 billion UFC rights deal.
To address a mid-tier status compared to giants like Netflix, Paramount Skydance plans to release at least 15 films annually starting in 2026. This marks an increase from roughly 11-14 films released in recent years.
Ellison also addressed speculation about a potential merger with Warner Bros. Discovery, stating that there's no immediate need for another deal. Instead, the studio is focused on building through investments and cost-cutting measures, aiming to drive enterprise efficiency and create long-term value and free cash flow generation.
The newly merged studio of Paramount and Skydance has released its first quarterly earnings report, revealing a company still navigating heavy restructuring. Despite posting revenue of $6.7 billion for the July-September quarter, which is essentially flat year-over-year, the short-term outlook remains focused on cost efficiencies.
Ellison emphasized long-term investment in content, stating that the company expects to make incremental programming investments exceeding $1.5 billion in 2026. However, some film releases have underperformed, including a reboot of "The Smurfs," which struggled to recoup production and marketing costs. The studio now aims to prioritize quality over quantity in its upcoming film lineup.
Paramount+ reported a 17% increase in streaming revenue to $2.17 billion, driven by the addition of 1.4 million subscribers, bringing the global total to 79.1 million. However, prices are set to rise next year, partly to cover costs from a new seven-year, $7.7 billion UFC rights deal.
To address a mid-tier status compared to giants like Netflix, Paramount Skydance plans to release at least 15 films annually starting in 2026. This marks an increase from roughly 11-14 films released in recent years.
Ellison also addressed speculation about a potential merger with Warner Bros. Discovery, stating that there's no immediate need for another deal. Instead, the studio is focused on building through investments and cost-cutting measures, aiming to drive enterprise efficiency and create long-term value and free cash flow generation.
still kinda weird how they're focusing on cost efficiencies tho, like, i get it, but can't they just chill for a sec and let some of those movie budgets breathe? 
anyway, the whole thing with paramount+ seems legit, 17% increase in streaming revenue is no joke 
guess that's why they're planning to raise prices next year, don't wanna be left in the dust 
also, 79.1 million subscribers? wow, thats some serious numbers 
david ellison is doing a great job with this new merger, and i'm so hyped for the future of paramount skydance!! 
they're investing big in content and movies, and that's gonna bring in some serious cash 
and yeah, maybe the smurfs reboot wasn't their best move 
but hey, we can't judge yet! 
anyhoo, i'm all about supporting our fave studios and their efforts to bring us more awesome movies and shows 
. On one hand, it's sick that Paramount Skydance just hit $6.7 billion in revenue for Q3 - that's a serious number 
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. Fingers crossed that they can make it all work 
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. the thing is, they want to focus on quality over quantity, which is smart, 'cause people are getting tired of all these crappy movies out there 
. and yeah, releasing more films in 2026 will definitely help them get back on track... or at least try 
. its also cool that paramount+ is doing so well with streaming revenue 
. the only thing thats a bit worrying me is this new UFC deal... $7.7 billion is huge 
... They're basically merging two major studios and now they're putting out their first earnings report? It's like a big experiment, you know? They're trying to figure out what works and what doesn't in this new hybrid model. Revenue is kinda flat, but at $6.7 billion, that's still a pretty decent chunk of change 
. But those prices are gonna rise next year, partly due to a massive UFC rights deal 
... Not sure what that has to do with the rest of their business, but I guess it's just another layer to consider.
Paramount Skydance seems like it's still trying to figure out its footing after the restructure. $6.7 billion in revenue isn't too shabby, but those costs aren't gonna cover themselves! 
you gotta be careful with your spending and make sure you're investing in the right things for long-term success. but what if they focus too much on cost-cutting and not enough on taking risks? that's when you might miss out on big opportunities 
and $1.5 billion in 2026 is a big ask, i hope they can make some magic happen. and wow, UFC rights deal? that's a lot of cash