Paramount Global is implementing a new approach to its streaming content strategy that aims to improve profitability and reduce subscriber churn. During the company’s earnings call, CEO Bob Bakish and CFO Naveen Chopra outlined their plan, emphasizing the need to create content efficiently.
Chopra mentioned that Paramount Global will focus on optimizing spending and content and marketing, which are the two largest expense categories in their streaming profit and loss (P&L) statement. The company will leverage its internal data to redefine its content slate and target specific audience segments more effectively.
“We’re accomplishing that goal by leveraging content across platforms more and more by leaning into franchises, and now that we’ve gathered more data, we’re increasingly able to use analytics to understand how to super serve these key audience segments,” said Chopra. This approach allows Paramount Global to move away from a volume-focused game and prioritize delivering the right content to the right audience at the right time.
A notable part of their strategy involved taking writedowns on content removed from Paramount+. By analyzing the data, the company discovered that sports viewers often watch entertainment programming as well. This insight enables them to fine-tune their strategy for specific viewers based on seasonal preferences. For instance, they can reduce content offerings for viewers who primarily watch NFL games during the fall and focus more on other content outside of the football season.
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Furthermore, Paramount Global will also change its release strategy for streaming programs to ensure that each key audience segment has compelling content throughout the year. This approach strikes a balance, providing enough content to engage viewers without overwhelming them.
The goal of this content strategy revamp is ultimately to lower costs while increasing profitability and reducing churn. By leveraging data and analytics, Paramount Global aims to optimize its spending and create content that resonates with specific audience segments. This approach allows the company to maximize its existing resources and cater to the evolving preferences of its subscribers.
The company’s emphasis on efficiency aligns with the evolving landscape of the streaming industry, where competition is intensifying. Paramount Global recognizes the need to stay agile and adapt its content offerings to meet the demands of its audience. By leveraging its data and focusing on key audience segments, the company can allocate its resources more effectively and create content that drives engagement and retention.
In conclusion, Paramount Global’s streaming content strategy overhaul aims to strike a balance between cost efficiency and audience satisfaction. By leveraging its internal data and analytics, the company will focus on delivering targeted content to specific audience segments. This approach allows Paramount Global to optimize its spending while ensuring a consistent flow of compelling content throughout the year. Ultimately, these efforts aim to improve profitability and reduce subscriber churn, positioning Paramount Global for success in the competitive streaming landscape.
