Paramount CEO Tries To Minimize Impact Of Strikes, Boasts Of Increased Cash Flow
Image Source: MarketWatch
Hollywood unions WGA and SAG-AFTRA are bringing the heat to the AMPTP with their strikes, but some studios haven’t felt the burn. After reviewing their Q2 earnings, Paramount is confident in their 2023 earning and release schedule. Paramount CEO Bob Bakish shared the studio’s trajectory, “With respect to our film slate, the good news is we have a significant number of films on which production is complete. That includes Killers of the Flower Moon, Bob Marley, John Krasinski’s If, as well as A Quiet Place: Day One, and Dear Santa with Jack Black. We also have the Mean Girls musical for Paramount+. Strikes do present some marketing challenges, something we’re working to assess with respect to our release strategy, but again, we’re well stocked.”
While Paramount's backstock of completed films is full for now, some releases have been pushed back to 2024. With both guilds on strike, no one is available to write or act in any uncompleted films. The strikes also prevent union members from promoting their projects. Bakish added that he was disappointed that actors, writers, and the studios couldn’t reach an agreement but stressed that Paramount has a duty to their consumers and constituents. Paramount executives claim they’re hoping for a timely resolution but predict a financial gain in the latter half of the year. Paramount CEO Naveen Chopra shared his thoughts, “We anticipate continued delays in production for the duration of the strikes, and as such, we estimate free cash flow in the back half of the year will be significantly higher than previously expected.”
RELATED:
Image Source: TBI Vision
Chopra concluded with the company’s strategy, “I want to emphasize that we remain focused on executing our strategy and that means continuing to scale streaming while maximizing our traditional business to deliver significant total company earnings growth in ’24 and create a more sustainable growth model in the process.” While Paramount is settled for the near future, the studio will eventually feel the strike’s effects if it continues into 2024.
READ NEXT:
Latest News
Featured
