TV Advertising Up For ViacomCBS, Now To Be Called Paramount

“My dad’s vision is being brought to life,” declared ViacomCBS Chair Shari Redstone as she hailed the cross-platform success of the company in a multimedia event for investors that focused largely on the streaming business.

The biggest news was a renaming of the company built by the late Sumner Redstone — eliminating his long-used Viacom, while CBS remains for the TV network. But beginning Wednesday, Feb. 16, the parent company will called Paramount. Shares of Paramount will trade on the Nasdaq as PARAA (class A common), PARA (Class B common) and PARAP (preferred stock), beginning with trading on Feb. 17 at 9:30 a.m. ET.

President-CEO Bob Bakish did hail the top shows on CBS as examples of how the company is leading on all platforms. But the focus of the long presentation was clearly streaming — primarily Paramount+, with some mention of Pluto TV and Showtime OTT. But Paramount+ is clearly the lead streaming brand, with Bakish raising the target to predict 100 million subscribers by 2024.

“In Q4, CBS had the top scripted broadcast drama with NCIS, the top comedy with Young Sheldon, and the top three new programs with FBI: International, NCIS: Hawai’i and Ghosts, the company said in its earnings announcement. “Also, The NFL On CBS averaged over 18 million viewers, more than any primetime television sports, entertainment, or news series on any network this season,” it reported.

TV Entertainment advertising revenue for the quarter rose 2% to $1.54 billion. That was credited to improved pricing and an increase in original programming, partially offset by lower political advertising. Affiliate revenue rose 5% to $721 million, driven by growth in reverse compensation.

Appearing an hour and a half into the lengthy presentation, CFO Naveen Chopra explained that the company will be reporting financial results differently this year. The Direct-to-Consumer business is getting its own segment for reporting, so Paramount+ will no longer be merged into the TV Entertainment numbers and Pluto TV will no longer be part of Cable Networks. The broadcast and cable operations will now be the TV Media segment and Filmed Entertainment (the movie business) will continue as a separate segment.

Chopra noted that TV Media would have posted positive adjusted OIBDA in the past year without bearing the costs of growing the streaming business. For 2022, the CFO said to expect results to be similar to the past year, adjusted for the 2021 Super Bowl.