ViacomCBS Announces Leadership Transition at Paramount Pictures
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| Brian Robbins |
NEW YORK--September 13, 2021--ViacomCBS Inc. (NASDAQ: VIACA, VIAC) (“ViacomCBS”) today announced a leadership change at Paramount Pictures. Effective immediately, Jim Gianopulos, Chairman and CEO of Paramount Pictures, will transition oversight of Paramount to Brian Robbins, who has been appointed President and CEO of the studio in addition to maintaining his current responsibilities leading Nickelodeon. Gianopulos will serve in an advisory role at Paramount through the end of the year to help ensure a smooth transition.
In addition, Paramount Television Studios (PTVS) will now become part of the premium network group under the leadership of David Nevins, Chairman and Chief Executive Officer, Showtime Networks, bringing together the divisions’ premium scripted content capabilities. Nicole Clemens will continue to lead PTVS in her capacity as President, PTVS, reporting directly to Nevins.
As part of this transition, and in line with ViacomCBS’s previously announced streaming content leadership structure, Robbins will assume oversight of films produced for Paramount+ as well as continue to be responsible for kids and family content globally for the streaming service. Nevins and Clemens will also continue to serve in their current Paramount+ roles of Chief Content Officer, Scripted Originals, and President of Original Scripted Series, respectively.
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| Jim Gianopulos |
“Paramount is one of ViacomCBS’s crown jewels, delivering some of the most iconic moments in entertainment for more than a century. The moves we’re making today will build on Paramount’s strong momentum, ensuring it continues to engage audiences at scale while embracing viewers’ evolving tastes and habits,” said Bob Bakish, President and CEO of ViacomCBS. “A passionate storyteller who takes a holistic view of the entertainment ecosystem, Brian is an expert at building powerhouse global franchises by leaning into the unique strengths of new and established platforms – including theatrical releases, streaming, linear, consumer products and more. With Brian drawing on his extensive experiences across animation and live action, and David overseeing Paramount Television Studios, we will build on Paramount’s incredible legacy and chart a new path for the studio.”
Bakish continued, “Jim is a towering figure in Hollywood who has successfully led Paramount through an extraordinary period in the film industry. From the wild success of the A Quiet Place franchise to the Oscar-winning Rocketman to fan favorites like Sonic the Hedgehog and Mission: Impossible – Fallout, he has overseen the creation of films that have achieved both critical acclaim and commercial success. I want to extend my deepest gratitude to Jim for his leadership in establishing a revitalized Paramount.”
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| David Nevins |
Said Gianopulos, “I’ve been privileged to be part of this amazing world of film and television for almost 40 years, and at the heart, it was always driven by two principal things: the brilliant talent of storytellers, whose visionary expression excelled in every medium and whom I did my best to empower, and a fantastic team of colleagues who helped me make that happen. I’ve been honored to help guide the evolution and massive expansion of creative content, from the birth of video to global TV access, to the launch of iTunes, to ubiquitous internet availability, and now the streaming revolution. The opportunity to take the reins at Paramount and revitalize it, build first-class executive and creative teams, and restore it to both profitability and creative success has been a source of pride. Brian has a long and successful career, and having worked closely with him, I know he and the team at Paramount will have great accomplishments in the future. I wish them all the very best success.”
“Jim is nothing less than legendary in this business, and I am humbled and grateful to him for his years of mentorship and friendship during our time working together,” said Robbins. “I am excited about the future for Paramount Pictures, and I want to thank Bob Bakish for the opportunity to use this incredibly powerful and broad canvas to produce films for every audience and deliver them in the ways today’s consumers want to experience them.”
As President of Nickelodeon since October 2018, Robbins has overseen culture-defining content and franchises at the number-one entertainment brand for kids with a proven ability to successfully engage theatrical, streaming and linear TV audiences by understanding the power of each platform. Franchises such as PAW Patrol and Teenage Mutant Ninja Turtles reach hundreds of millions of young people around the world through TV shows, movies and consumer products, while SpongeBob SquarePants has become one of the most popular animated characters of all time.
Under Robbins’ leadership, Nickelodeon has become a powerful driver of subscribers and engagement at Paramount+ since its launch in March 2021. Programming for young audiences, such as PAW Patrol: The Movie and the series and films in the SpongeBob SquarePants universe, account for a double-digit share of total streams, and the platform’s slate includes numerous highly anticipated releases from the likes of Nickelodeon’s Avatar Studios.
Prior to his appointment at Nickelodeon, Robbins served as President of Paramount Pictures’ Paramount Players division, where he worked closely with legacy-Viacom brands to identify talent and properties to be developed into co-branded feature films. Previously, Robbins co-founded the multiplatform media company Awesomeness in 2012 and served as its CEO. He also co-founded Tollins/Robbins Productions and was the Founder and President of Varsity Pictures.
Robbins has executive produced numerous television and movie hits, including Kenan & Kel and All That, the latter of which Robbins adapted into the Nickelodeon feature film Good Burger; directed the Paramount films Varsity Blues and Hardball; executive produced Blue Mountain State for Spike TV (now Paramount Network); and also produced the television series Smallville and One Tree Hill, among others.
Robbins is the recipient of a Directors Guild Award, a Peabody Award and the International Academy of Television Arts and Sciences’ Pioneer Prize. He is also an Emmy Award nominee.
Gianopulos’s distinguished career in the global entertainment industry spans nearly 40 years. Gianopulos took the reins of the studio in April 2017, revitalizing the studio and restoring profitability consistently throughout his tenure.
During his time at Paramount, Gianopulos has been responsible for creating and restoring massively successful franchises including A Quiet Place and A Quiet Place Part II, with more films in the works; Sonic the Hedgehog, with a sequel slated for release next year; Mission: Impossible – Fallout, the most profitable and critically-acclaimed film in the franchise, with the seventh and eight installments in production; the highly-anticipated Top Gun: Maverick; and Bumblebee, which marked a reinvigorated Transformers brand, returning the franchise to both profitability and critical acclaim. Additionally, Gianopulos rebuilt the popular Tom Clancy franchise across both film and television and was responsible for the award-winning 2018 hit Elton John biopic Rocketman.
During his tenure, Gianopulos built a first-class team of film and television executives, including his hiring of former Twentieth Century Studios chief executive Emma Watts to oversee the motion picture group, as well as bringing on seasoned marketing leaders, including Marc Weinstock and Mary Daily, and re-establishing Paramount Animation under the leadership of Mireille Soria, among other key roles. On the television side, Gianopulos built Paramount Television Studios, with Clemens at the helm, increasing output to more than 20 shows consistently in production and on the air. High-profile projects in production include The Offer, about the making of The Godfather, for Paramount+ and American Gigolo for Showtime.
Prior to joining Paramount, Gianopulos served as the Chairman and CEO of Fox Filmed Entertainment from 2000 to September 2016. In this role, he was responsible for feature film production, marketing, and global distribution of film and television content in all media. During his time as Chairman and CEO of Fox, the studio had its most profitable years ever, and in 2014, Twentieth Century Fox broke the all-time industry global box-office record, earning more than $5.5 billion. Gianopulos also has the distinction of having championed two of the biggest film successes in history, Titanic and Avatar.
Gianopulos chairs the Board of the Motion Picture and Television Fund, serves as Treasurer of the Academy Museum of Motion Pictures Board of Trustees, and is a member of the board of the USC School of Cinematic Arts and a trustee of the American Film Institute.
About ViacomCBS
ViacomCBS (NASDAQ: VIAC; VIACA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, ViacomCBS provides powerful capabilities in production, distribution, and advertising solutions for partners on five continents. For more information about
ViacomCBS, please visit www.viacomcbs.com and follow @ViacomCBS on social platforms.
VIAC-IR
Gianopulos sent a memo to staff Monday afternoon after the transition was announced, thanking them for their work over the past 4 years.
“When I joined the studio in 2017, Paramount was in a period of turmoil —in many ways it seemed to have lost some of its soul, or at least its pride,” Gianopulos wrote. “Together, we reinvigorated it, with a commitment to its heritage, by putting great entertainment on the big and small screens for audiences worldwide, and in the process, restoring it to profitability, and infusing it with dedication, hard work, and perhaps most importantly, heart. After many years in this business, it has been a true joy and privilege to be part of the evolution of this singular industry, and to work alongside all of you as it continues to evolve.”
Read his full memo to staff, below.
Dear Colleagues,
As you have heard, I will be stepping down as Chairman and CEO of Paramount Pictures today. With this transition, I want to share some thoughts and especially my gratitude to you. Since my first day on the lot over four years ago, I have felt welcomed, supported, and embraced by all of you, and I have been utterly blown away by your optimism and hard work on our mission to rebuild this studio. Paramount is a storied institution, and we are the latest to be custodians of its great legacy. I have been immensely proud of the work we have done and what we have built together, and I’m grateful for all your contributions along the way.
When I joined the studio in 2017, Paramount was in a period of turmoil —in many ways it seemed to have lost some of its soul, or at least its pride. Together, we reinvigorated it, with a commitment to its heritage, by putting great entertainment on the big and small screens for audiences worldwide, and in the process, restoring it to profitability, and infusing it with dedication, hard work, and perhaps most importantly, heart. After many years in this business, it has been a true joy and privilege to be part of the evolution of this singular industry, and to work alongside all of you as it continues to evolve.
As we make this transition to a new era for the studio, I encourage all of you to reflect on your accomplishments over these past years and applaud yourselves for a job truly well done. I certainly applaud each and every one of you.
Since its inception, Paramount has been synonymous with great theatrical entertainment, and together, we have launched massive global hits like Mission: Impossible—Fallout, and helped build new cinematic worlds, like A Quiet Place and Sonic the Hedgehog, and elevated existing ones, like Transformers and, Star Trek (with new films in the works), among others. From cinematic biopics like Rocketman to targeted hits like Book Club, we’ve created films that we can truly take pride in, and that audiences have responded to. We’ve worked with and developed future projects with some of the greatest filmmaking and television talent in the world today, too many to mention, but also a source of pride for all of us. We’ve revitalized Paramount Animation, with films like The SpongeBob Movie: Sponge on the Run, which debuted on Paramount+ this year.
Time and again, you’ve shown that the cinematic experience matters to people: that if you build something special, they will come. And I have no doubt that with films like Top Gun: Maverick, Scream, jackass forever, the next two Mission: Impossible movies and others, Paramount will only reinforce this fundamental truth. I will be in the audience for films like Transformers: Rise of the Beasts, Dungeons & Dragons, The Lost City, Babylon, and others now in production, and have no doubt you will be celebrating their successes as well.
On the television side, we have established Paramount Television Studios as a highly respected provider of series entertainment with 20+ shows in production or on the air at various platforms and networks, including hits such as “13 Reasons Why” “Tom Clancy’s Jack Ryan,” “The Haunting of Hill House,” “Defending Jacob,” “Made for Love,” the upcoming series “The Offer,” about the making of The Godfather, for Paramount + and “American Gigolo” for Showtime, among many others.
These achievements would be a source of pride and accomplishment under any circumstances, but you’ve built these successes even while weathering an often debilitating global pandemic, and have done so with grace and grit. Time and again, you’ve proven that if you must be in the foxhole, this is the team I’d want to be with.
Our shared success has been driven by two core pillars: the brilliant talent of the storytellers we work with, and the fantastic team of colleagues of which we have all been so fortunate to be a part. The opportunity to revitalize Paramount, build first-class executive and creative teams, and restore it to both creative success and profitability has been and will remain something I will always cherish, and I owe that success to all of you.
I wish all of you continued success and joy, and thank you for all you have done. I have resisted naming any of you individually at the risk of being disrespectful to others, and I couldn’t possibly acknowledge each of you in this note anyway, but I am truly honored to have worked with my senior team, and all of you here and around the world. I’m sorry these past 18 months have limited our opportunities to be together and see each other, but from the bottom of my heart, I thank you all for making Paramount the incredible place that it is, and this experience leading you among the finest of my life.
I’m also proud of the enormous effort and resources we have dedicated to one of the most important aspects of our business today and in the future, diversity, equity, and inclusion. While there is still a lot of work to be done, the focus we have put on these efforts has shown results, and the potential for a more just and equitable industry for all.
As you know Brian Robbins, who is currently President and CEO of Nickelodeon and Chief Content Officer of Kids & Family for Paramount+, will be taking over the leadership, and many of you know Brian from his time working with us and building Paramount Players. I wish him great success and know that together you will continue to build the next chapter of Paramount’s great legacy.
Once again, my gratitude and fondest wishes to you all.
Jim
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From Variety:
Brian Robbins Officially Tapped to Lead Paramount
Brian Robbins has officially been named president and CEO of Paramount Pictures, replacing Jim Gianopulos as head of the studio behind the “Mission: Impossible” and “Transformers” franchises, and setting up a new era in the oversight of one of Hollywood’s big movie studios.
Robbins will take the reins while continuing in his current post as head of Nickelodeon and as the chief content officer of kids and family for Paramount Plus, the streaming service launched this year by Paramount’s parent company ViacomCBS. Gianopulos will serve in an advisory role at Paramount through the end of the year. The media conglomerate hopes that Robbins, who boasts digital savvy and a long history in kids programming, will help guide it as it looks ahead to a future dominated by streaming giants.
“Paramount is one of ViacomCBS’s crown jewels, delivering some of the most iconic moments in entertainment for more than a century. The moves we’re making today will build on Paramount’s strong momentum, ensuring it continues to engage audiences at scale while embracing viewers’ evolving tastes and habits,” said Bob Bakish, president and CEO of ViacomCBS. “A passionate storyteller who takes a holistic view of the entertainment ecosystem, Brian is an expert at building powerhouse global franchises by leaning into the unique strengths of new and established platforms – including theatrical releases, streaming, linear, consumer products and more.”
News of Robbins’ promotion leaked on Friday, stunning many studio insiders with the ouster of the well-liked Gianopulos, but a formal announcement came Monday. Robbins is a former child actor who once starred on ABC’s “Head of the Class.” He reinvented himself as a producer and director, overseeing such films as “Hardball,” “Varsity Blues,” and the critically pummeled “Norbit,” before becoming an entrepreneur. Robbins launched AwesomenessTV, a YouTube channel aimed at teenagers, which he later sold to DreamWorks Animation and then Viacom. After rejoining Viacom in 2018, Robbins led Paramount Players, a production division that created the likes of “What Men Want” and the live-action adaptation of “Dora the Explorer.”
Robbins reportedly sold ViacomCBS head Shari Redstone on his vision for the studio and his plans to shift its emphasis in the direction of feeding Paramount Plus with content as it struggles to compete with streaming giants like Netflix, Disney Plus and HBO Max. In his new capacity, Robbins will oversee films produced for Paramount Plus. His elevation could be destabilizing. Gianopulos has assembled a talented core of executives, many of whom, such as motion picture group president Emma Watts, worked with him previously during his long stint at 20th Century Fox. It’s unclear if they will stick around under a new regime.
At Paramount, Gianopulos restored the money-losing studio to profitability, oversaw box office hits such as “A Quiet Place” and “Sonic the Hedgehog,” and guided the company through the darkest days of the pandemic, selling movies like “The Trial of the Chicago 7” and “Without Remorse” to streaming services when theaters were shuttered.
He sounded a valedictory note in his statement. “I’ve been privileged to be part of this amazing world of film and television for almost 40 years, and at the heart, it was always driven by two principal things: the brilliant talent of storytellers, whose visionary expression excelled in every medium and whom I did my best to empower, and a fantastic team of colleagues who helped me make that happen,” he said. “I’ve been honored to help guide the evolution and massive expansion of creative content, from the birth of video to global TV access, to the launch of iTunes, to ubiquitous internet availability, and now the streaming revolution. The opportunity to take the reins at Paramount and revitalize it, build first-class executive and creative teams, and restore it to both profitability and creative success has been a source of pride. Brian has a long and successful career, and having worked closely with him, I know he and the team at Paramount will have great accomplishments in the future. I wish them all the very best success.”
“Jim is nothing less than legendary in this business, and I am humbled and grateful to him for his years of mentorship and friendship during our time working together,” said Robbins in his own statement. “I am excited about the future for Paramount Pictures, and I want to thank Bob Bakish for the opportunity to use this incredibly powerful and broad canvas to produce films for every audience and deliver them in the ways today’s consumers want to experience them.”
In addition to Robbins’ promotion, David Nevins, the longtime Showtime chief, will take on oversight of Paramount Television as the studio undergoes a restructuring and leadership change. Nicole Clemens, who has headed up Paramount TV since 2018, will now solely report to Nevins.
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From Deadline:
ViacomCBS CFO Sees New Paramount Chief Brian Robbins “Aggressively Embracing Streaming, Changes In Consumer Behavior”
ViacomCBS CFO Naveen Chopra — asked Tuesday about Paramount’s management shakeup — said outgoing studio CEO Jim Gianopolus “leaves some very big shoes to fill. There is no doubt he has helped revitalize the studio both creatively and financially. But I think Brian [Robbins] is really the perfect person to take the reins from here.”
Robbins heads Nickelodeon and will keep that role. At a virtual media conference Q&A by Bank of America Merrill Lynch, Chopra called the exec “a very passionate storyteller [who will] leverage the benefits of the traditional parts of the business, like theatrical distribution, while also aggressively embracing streaming and changes in consumer behavior.” Robbins assumes charge of films produced for Paramount+ and continues to oversee kids and family content globally for the streamer.
The change, announced officially yesterday, also has Showtime CEO David Nevins expanding his portfolio with Paramount Television Studios. Chopra called it “a very accretive move for us” — CFO speak — and said Nevis has “incredible track record of creating culture-defining content that is both commercially successful and critically acclaimed and now he will be able to do that with an even broader purview.”
“At the end of the day we are a content company and what Brian and David will be able to do is to take our content to the next level to feed multiple parts of our business.”
Asked by analyst Jessica Reif Ehrlich if the streaming wars have dimmed the overall value of movies , Chopra said no.
“Movies are extremely important to us and continue to be a very unique storytelling media that are critical to developing franchises and really being able to connect to audiences. Movies have always had the ability to be monetized through various different channels, and the difference is that today we have more distribution options for films than we ever had.”
He said Paw Patrol, released day and date with Paramount+, exceeded internal box office targets for an exclusive theatrical release – “meaning the release on Paramount+ and in theaters was synergistic.” He thinks cinema play did a lot to “eventize” the streaming release – it was one of Paramount+ most-watched originals – and visa versa.
If depends on the film and decisions will be taken one by one. He said Paramount recently pushed Tom Cruise’s Top Gun: Maverick into next year (and moved out Mission: Impossible 7). “The theatrical environment is still very dynamic and very different in different parts of the world, and we just have found that in order to maximize the value of those assets it makes sense to wait,” je said.
Chopra reiterated plans to boost streaming content spend to $5 billion by 2024 from $1 billion last year, and an estimated $2 billion-plus this year and said streaming revenue should more than offset declines in linear affiliate revenue. “We strongly believe that streaming is a net addition to our business, not a replacement.”
He said ViacomCBS will continue divesting non-core assets, as per CNET, Simon & Schuster and Black Rock, and could pursue acquisitions along the lines of its investment in Miramax and a push into local content production. It recently bought ChilevisiĆ³n from WarnerMedia. Chopra didn’t mention bigger deals but the company has been the focus of M&A speculation for months since a consolidation wave hit the industry as WarnerMedia and Discovery plan to combine and MGM to sell itself to Amazon.
ViacomCBS did ink two international streaming deals recently with Comcast’s Sky. The first is a commercial deal in big western European countries where Sky will distribute Paramount+ to pay TV subscribers that take its cinema tier. The second is a joint venture with Comcast focused on smaller markets mostly in Eastern Europe that creates a new streaming service called SkyShowtime.
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From Deadline:
ViacomCBS CEO Says New Studio Boss Brian Robbins “Understands And Values Today’s Multiplatform World”
ViacomCBS CEO Bob Bakish was out beating the Wall Street drum for new Paramount boss Brian Robbins, who, he told investors, will lead “the film studio of the future.”
“He’s a franchise builder and he’s a collaborator. He has a broad and strong content track record. He’s done film, he’s done streaming, he’s done television, he’s done digital [and] over the past few years “he’s completely rebuilt the Nickelodeon pipeline… leveraging franchises and creating new hits,” Bakish told a virtual media conference hosted by Goldman Sachs in his first public comments about a management shift at the company.
Robbins last week added the role of Paramount CEO to his duties overseeing Nick and helping shepherd Paramount+. He replaced Jim Gianopolus, whom Bakish also praised for turning the studio around. “He entered Paramount [when it was] in a very different position, and is leaving it in great shape.”
Asked what Robbins will bring in his new role, Bakish said the exec, “really understands and values today’s multiplatform world. He sees the role of theatrical distribution as a powerful franchise builder… He knows how compelling content drives streaming and he understands how social media drives the mix.” Robbins’ expanded portfolio will give him “incredible resources” to pursue that along the lines of what the exec did with Paw Patrol: The Movie, Paramount’s first a day-and-date release and a trifecta winner — on streaming, in theaters and on shelves, driving consumer product sales.
As ViacomCBS experiments with release strategies. Bakish said day-and-date is “a very good model for kids and family films, particularly in these Covid-impacted times.”
Paramount+ exclusives work well with lower budget fare like upcoming Paranormal Activity: Next of Kin and The In Between. For most others — and in general for bigger films like A Quite Place Part II — “I tend to think 45-days is the sweet spot for driving theatrical and streaming growth,” Bakish said.
“As we do that, theatrical definitely still matters.”
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From MarketScreener:
ViacomCBS : VIAC.OQ - ViacomCBS Inc at Goldman Sachs Communacopia Conference (Virtual) Transcript
[...]
Brett Joseph Feldman - Goldman Sachs Group, Inc., Research Division - Equity Analyst
All right. We're going to spend some time talking about all of that. But before we do, last week, you announced a few key management changes. You appointed Brian Robbins as President and CEO of Paramount Pictures in addition to maintaining his current responsibilities leading Nickelodeon. And you also announced that Paramount Television Studios will become part of the premium network group under the leadership of David Nevins, who is the Chairman and CEO of Showtime. Why are you making these organizational changes? And what operational or strategic changes should investors expect as Brian and David take on their new roles?
Robert Marc Bakish - ViacomCBS Inc. - President, CEO & Director
So sure. But before getting into it, I really want to highlight the amazing job that Jim Gianopulos did coming in. He really stabilized Paramount, turned it around and rebuilt it over the last few years. And as you know, he headed Paramount when it was a very difficult position. And he's leaving it in great shape. And for that, I, the Board, the company are very thankful to him.
Now at the core, the changes we announced are about better aligning our organization with our strategy and creating an environment to further strengthen execution. The changes will position Paramount to lean more into franchises and more into streaming while maintaining its extraordinary theatrical legacy including, as exemplified by the fantastic slate we have coming in 2022. And as you noted, it brings together Paramount Television and Showtime's premium content capabilities, which further scales our capabilities in that key sector of the market. So it's really about creating a studio for the future. And as we're doing that, I'm super excited about the leadership we have in place.
Let me start with Brian. Brian Robbins is a content creator, he's a franchise builder and he's a collaborator, which, to me, is an incredibly compelling combination of talents. You look at his resume, and he has a broad and strong content track record. He's done films, he's done streaming, he's done television, he's done digital. And over the last 3 years, he completely rebuilt the Nickelodeon pipeline. And that was by both leveraging franchises and creating new hits. I think equally importantly, he really understands and values today's multi-platform world. He sees the role of theatrical distribution as a powerful franchise builder. You saw that most recently with what he did with PAW Patrol.
He also knows how compelling content drives streaming, as he demonstrated with SpongeBob, iCarly, Rugrats and PAW Patrol on Paramount+ this year. And he understands how social media drives them in, and that really dates back to his Awesomeness deals. As you recall, he founded AwesomenessTV. And so the combination of him now leading Paramount, which, by the way, includes Paramount Players, and Nickelodeon gives him incredible resources to create incremental value through franchises and multi-platform execution.
Likewise, with television's side, David Nevins brings a lot to the table in his newly expanded role. He now has oversight of Paramount Television, which will be part, as you said, part of the premium network group. He, too, is an extremely strong creative executive and has a proven track record and really exceptional taste. So the change allows us to get more leverage from that and is thus additive to what we're doing in scripted content. And it really builds on the recent move we made to have him begin working with Paramount TV and more broadly on production for Paramount+. So I look really forward to, I'm sure, an incredible set of content that's going to now emanate from this larger studio operation he has.
[...]
Brett Joseph Feldman - Goldman Sachs Group, Inc., Research Division - Equity Analyst
Earlier, you just mentioned the success that PAW Patrol had at the box office. Despite the fact that it also debuted day-and-date on Paramount+, but you've indicated that most movies will continue to be released with 45-day exclusive theatrical exhibition windows. So I really have 2 questions here. The first is how are you thinking about your film strategy more broadly as the business becomes more streaming-centric? And then for films with theatrical releases, why does a 45-day exclusive window continue to make sense where we've seen some other studios go to windows as short as 17 days?
Robert Marc Bakish - ViacomCBS Inc. - President, CEO & Director
Yes. So I don't think it will surprise you when I tell you we're spending a lot of time on release strategy and really testing different models to maximize the value of that film slate in this evolving landscape, particularly in this COVID-ruled space. So most recently with PAW Patrol, that was actually our first day-and-date release. When I say day-and-date, I mean streaming and theatrical simultaneously. We think that's actually a very good model for kids and family films, again, particularly in this COVID-impacted time, because it gives consumers optionality to view the product where they feel the most comfortable and we did a bunch of research on that. The result of that move, though, was a film which did very well both theatrically and it was a significant driver for Paramount+, where it's actually now one of the most watched originals to date.
So to us, it's clear that, that combined strategy really drove the incremental performance. And in fact, if you look at the box office piece of it, it actually outperformed our green light. And the green light was done assuming it was a traditional theatrical-only release. So very compelling on the performance side, and it really demonstrated the potential for us to [event-ise] content, really leveraging the full set of ViacomCBS platforms to do so. And that even included our consumer products business. I mean we promoted PAW Patrol both through theaters and on Paramount+ on over 2 million boxes at retail. So that, too, helped to build excitement around it.
So we like the day-and-date strategy for families. We are also doing some direct to Paramount+ exclusives. We've got 2 coming shortly in the form of Paranormal Activity and The In Between. And so we think exclusive availability, particularly at lower budget levels, which these films are lower budget levels, is a compelling value creation opportunity for streaming.
And then in general, for the bigger films, as you said, we do like to fast follow theatrical to pay one strategy of 45 days. I continue to think that's the sweet spot of driving theatrical revenue and streaming growth in general. We used that strategy very effectively for A Quiet Place Part II. So it's not that we're going one direction for every film. We're actually using a strategy which has a range of tactics, again, designed to maximize the value of a film across this now broader ecosystem. But as we do that, theatrical definitely still matters.
Brett Joseph Feldman - Goldman Sachs Group, Inc., Research Division - Equity Analyst
All right, talking a bit now about Paramount+. One of the most important metrics in a subscription-based business model is churn. And in the streaming world, low churn is generally reflective of high engagement. So once again, I kind of have a 2-part question, which is can you just provide some color on how Paramount+ subscribers have engaged with your content? And really, the second part is more of a follow-up, which is we're trying to think about the benefit of original series versus reboots versus movies versus sports because you flowed all of that content into the service since it's been launched.
Robert Marc Bakish - ViacomCBS Inc. - President, CEO & Director
Yes. So Brett, look, the good news is we're really seeing a diversity of content popping on the service. It's driving both subscriber additions and engagement. The engagement piece is obviously important to managing churn. We really think this is, again, another validator of our thesis of the value of a broad service, and it really sets the stage for continued growth and momentum for Paramount+.
When you look under the covers at what's driving the consumer, there is no question our film product is working in the stream. And again, as I just mentioned, it's definitely a film-by-film strategy. We talked about the success of PAW Patrol. I mentioned A Quiet Place II. By the way, A Quiet Place II, great from both an acquisition and engagement perspective. And as part of that, we put A Quiet Place I on the service, and that really had very good engagement as well. And that adds -- or in addition to that, we are using like the whole library for Paramount. And in fact, if you looked at August, library titles, not new releases, but library titles accounted for about 2/3 of the total film minutes consumed. So we're really seeing films kick in as a powerful and multifaceted part of Paramount+.
At the same time, Nickelodeon is really working for us. The best example probably, which I talked about on our earnings call, was iCarly. But we've also seen strong performances from Rugrats, the new Camp Coral series and also the broader new library. So that's a place where we're taking our legacy leadership in kids and transitioning that leadership into streaming, and it's definitely happening. They're scripted, which everyone loves scripted on streaming, particularly probably the people on this call. And scripted is working for us, too. We have titles like Why Women Kill, The Good Fight, of course, multiple Star Treks, and they are all nicely contributing to acquisition and to engagement.
Something that I think is undervalued outside our company, but recognized within our company is unscripted. That's really starting to kick in for Paramount+. MTV's The Challenge worked really well for us. RuPaul, who, by the way, just became the winningest black talent in history from an Emmy perspective, really working well for us, particularly on the acquisition side. So it's a broad range of entertainment product that's driving the consumer.
Add to that sports. There's no question, sports has been an engine. That, too, is part of our thesis. Remember, Paramount+ news, sports a mountain of entertainment. We believe in the linkage between sports and entertainment, and we're seeing it. We made a real commitment to soccer, European football, and we're very happy with how that's doing. And now, of course, football is back, American football. The NFL, 2 weeks in, once again, proving its value and the FCC as well.
So put it all together, we really like what we're seeing in the metrics, both in terms of subs and what we're seeing as a trend line on churn. And it's that mix of entertainment, including movies, franchises, particularly in kids, plus sports and events, it's a real differentiator for Paramount+, and it's definitely driving success.
Brett Joseph Feldman - Goldman Sachs Group, Inc., Research Division - Equity Analyst
Let's talk a little bit more about subscriber trends. You added 6.5 million streaming subscribers in the second quarter. That was actually higher than the net adds that you captured of 6 million in the first quarter, which was the quarter you launched Paramount+ with a lot of marketing behind it. But the streaming market does appear to be getting more competitive and consumers continue to emerge from lockdown. What do you see as the primary drivers of Paramount+ subscriber growth in the back half and going forward?
Robert Marc Bakish - ViacomCBS Inc. - President, CEO & Director
So we start, Brett, with like I'm thrilled with the momentum we're seeing at Paramount+. When we came up with the idea and strategy for it, I fundamentally believed in it. I believed in this idea for a differentiated product. I just mentioned it, one that's broad, includes news, sports and this full spectrum of entertainment and one that can benefit from our extensive reach and relationships globally. And you're really seeing that thesis prove out and it's going to keep going.
So in terms of going forward, I think the drivers for Paramount+ are a mix of both content and continued expansion. On the content side, we're in the late innings or the third quarter. We've had a great third quarter. Films, I mentioned A Quiet Place II and PAW Patrol. On the soccer side, both CONCACAF and now UEFA and American football, the NFL and the SEC. On the episodic television side, we got Big Brother, Love Island, Star Trek: Lower Decks. On the kids side, we have Camp Coral coming back for a second season and Rugrats. And then you look to Q4, which is about to start, you got the whole CBS fall slate, which looks fantastic. By the way, we won the first night of the broadcast season, which is the first time we did that since 2017. We've got the first of our original South Park movies from a new deal we did with Matt and Trey. And then we got compelling new scripted shows, including from Yellowstone creator, Taylor Sheridan, and that's both the Yellowstone prequel, Y: 1883, and a totally new show, Mayor of Kingstown.
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From the Wall Street Journal:
Brian Robbins Goes From ‘Head of the Class’ to Head of Paramount
The actor-turned-producer is set to guide the iconic studio in the streaming era
When “Paw Patrol: The Movie,” a big-screen adaptation of a Nickelodeon show, became an unexpected hit this summer in theaters and on the Paramount+ streaming platform, few in Hollywood thought its success would catapult Nickelodeon chief Brian Robbins to the top of Paramount Pictures
But just one month later Mr. Robbins was promoted to run the iconic movie studio by parent company ViacomCBS Inc. and bring new energy to the studio that has become something of an also-ran in Hollywood.
When “Paw Patrol: The Movie,” a big-screen adaptation of a Nickelodeon show, became an unexpected hit this summer in theaters and on the Paramount+ streaming platform, few in Hollywood thought its success would catapult Nickelodeon chief Brian Robbins to the top of Paramount Pictures.
“There were a lot of people who didn’t think a preschool movie could carry the weight of a theatrical release,” Mr. Robbins said in an interview. Instead, the movie is going to be very profitable and has boosted consumption and engagement on Paramount+, Mr. Robbins said, adding that it was a “win in franchise building” and one of the reasons ViacomCBS Chief Executive Bob Bakish “put me in this seat.”
Before his surprise appointment, Mr. Robbins oversaw the Nickelodeon children’s channel, a role he will continue in for now. Before that, he ran Paramount Players, a production arm of Paramount, which made movies including “Dora and the Lost City of Gold” and “What Men Want.”
Mr. Robbins’s elevation signals a changing of the guard across the entertainment industry, not merely generational but also in focus, as studios once fixated on the big screen turn their attention to attracting younger audiences and direct-to-consumer streaming services. At Paramount, he is already looking at the studio’s library of years-old hits and finding ways to update them for this new market, where film and TV collapse into one giant content machine.
A Brooklyn native, the 57-year-old Mr. Robbins started his show-business career as a teen heartthrob in the 1980s sitcom “Head of the Class.” He segued into producing with credits that include the hit teen dramas “Smallville” and “One Tree Hill.” Movies he produced or directed include “Varsity Blues” and the Eddie Murphy comedy “Norbit,” which was critically panned but a box-office hit.
He also founded AwesomenessTV, a digital content company that programmed for the Generation Z audience and eventually sold to DreamWorks Animation.
Longtime associates of Mr. Robbins say he could provide a jolt to the studio.
“There needs to be the opportunity for new blood,” said Jeremy Zimmer, the chief executive of United Talent Agency, the talent representation business that works with Kevin Hart and other stars.
He sees Mr. Robbins’s appointment at Paramount as an opportunity to break from calcified ways. “Potentially one of the reasons there is such a lack of momentum and energy in the traditional movie business may be a lack of evolved leadership,” Mr. Zimmer added.
Mr. Robbins’s film experience pales in comparison with that of his predecessor, Jim Gianopulos, a well-liked veteran who ran Paramount for nearly five years and Twentieth Century Fox for 16 years. But Mr. Robbins’s background in creating shows and movies for teens and his digital experience appealed to ViacomCBS brass, including Chair Shari Redstone, who like other traditional media executives, are giving priority to streaming.
“Look at Disney, Universal and Warners. What’s the conversation? It’s about streaming,” Mr. Robbins said. “We know where consumer behavior is going. Not only is there a chance to reach and capture a bigger audience, but for the first time, media companies are going to have a direct relationship with their customers,” he added.
Wall Street has signaled its approval too. Share prices of media companies over the past year have risen or fallen on the success of streaming subscriber growth.
Once considered the nucleus of Hollywood moviemaking, home to classics like “Chinatown” and a sun-soaked back lot, Paramount’s profile has declined in the past decade after several years of diminished output and few hits.
Under Mr. Gianopulos, Paramount was somewhat revitalized with hits like “A Quiet Place” and the successful integration of other properties such as Sonic the Hedgehog.
Faced with a landscape of closed theaters this past 18 months, Paramount under its old leadership opted to sell off much of its movie slate to streaming services that could debut the titles in people’s homes. The romantic comedy “The Lovebirds” went to Netflix, as did the Oscar-nominated “The Trial of the Chicago 7.” The big-budget summer release “The Tomorrow War” made its debut on Amazon.com Inc.’s Prime Video service.
Mr. Robbins now has to decide what to do with the theatrical releases the studio has retained, including the long-awaited sequel to “Top Gun” and two more “Mission: Impossible” installments, both starring Tom Cruise. The former is now slated for release in May 2022 after several delays. Mr. Robbins says he suspects theatrical moviegoing will have returned to some semblance of normalcy by then.
When he took the job at Paramount, observers in Hollywood suspected—and some creators worried—that Mr. Robbins’s leadership would usher in a streaming-first mentality that largely did away with the theatrical release. Mr. Robbins said he is committed to keeping the big screen in the Paramount diet, adding that he hopes the studio is still releasing in 2025 as many theatrical releases as it did before Covid-19.
“I’m not one of these guys who thinks theatrical is going away,” Mr. Robbins said.
He already has his eye on Paramount’s collection of franchises, from Teenage Mutant Ninja Turtles to Star Trek and Transformers. Each of these properties has given the studio some of its biggest hits in the past decade, but they have also either collected dust or disappointed in recent years. Mr. Robbins outlined new plans for each of them, from TV shows to theatrical releases, that he hopes will revive the characters, provide a steady stream of content to Paramount+ and give the studio the kind of franchise-model success that rivals like Walt Disney Co. have enjoyed.
At the same time, he said he doesn’t plan to turn away from non-franchise movies or smaller films. The challenge will be finding the best means of distribution for those genres.
Those who know Mr. Robbins say it would be foolish to see him as a children’s television executive who may be out of his depth heading a movie studio, a description used by some of Hollywood’s old guard and longtime industry observers after his appointment.
“People underestimate him,” said Jordan Levin, a media executive who worked closely with Mr. Robbins when Mr. Levin was a network chief, and who also succeeded him as head of Awesomeness. “He is laser focused on trying to understand the consumer and how you win the next generation,” he added.
Mr. Robbins said he was trying to avoid the negativity from some Hollywood circles about his appointment, noting that when Barry Diller leapt from broadcast TV to head of Paramount in the mid-1970s he was derisively labeled by Hollywood insiders as “that TV-movie guy at ABC.”
Corrections & Amplifications
United Talent Agency no longer represents the actress Angelina Jolie. An earlier version of this article incorrectly listed her as a client. (Corrected on Sept. 29.)
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From Forbes:
Brian Robbins Tapped To Lead Paramount Into The Future
Brian Robbins is moving up at Paramount Pictures. The Wall Street Journal has published a piece on how the actor turned producer has taken over for Jim Gianopulos as chairman and chief executive of Paramount Pictures.
Robbins started his entertainment career as a teen heartthrob on the 1980’s sitcom, Head of the Class. He went on to produce teen dramas such as Smallville and One Tree Hill. He later worked as a director and producer on films like Norbit. He also ran Paramount Players, a film production label of Paramount Pictures, which made movies including Dora and the Lost City of Gold. Robbins also serves as the President the children’s channel, Nickelodeon.
During his time at Nickelodeon, the studio released Paw Patrol: The Movie on Paramount+ and in theaters. The success of the movie made a strong case for Robbins’ leadership. “There were a lot of people who didn’t think a preschool movie could carry the weight of a theatrical release,” Mr. Robbins said previously on the movie. New ideas and children’s media seem to be what Paramount needs in the streaming landscape.
Focusing less on blockbusters is a new direction for the company. With theater closures leading to an escalation of the streaming wars, having new blood might be what the studio needs.
“Look at Disney, Universal and Warner. What’s the conversation? It’s about streaming,” Robbins said to the Wall Street Journal. “We know where consumer behavior is going. Not only is there a chance to reach and capture a bigger audience, but for the first time, media companies are going to have a direct relationship with their customers.”
While streaming is now a part of the conversation, Robbins also hopes to have the studio releasing as many theatrical releases by 2025 as it did before the COVID-19 pandemic. The last year saw the company sell much of their movie slate to other streaming services before they debuted their own, Paramount+.
While Paramount is hopeful under the new chairman, the shake-up in leadership may have caused internal confusion. Variety reported on alleged internal strife due to new leadership.
Robbins is set to push the company towards being a contender in the streaming space and a background in youth TV may help him directly do that. A focus on the next generation of streaming users may allow Paramount and more specifically Paramount+ to advance in the highly packed field of streaming services.
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From The Hollywood Reporter:
How Will Paramount’s New Film Chief Remake the Studio?
Brian Robbins hopes to convince A-list talent (he calls Tom Cruise daily) that he cares about theatrical and big-budget bets as he restructures the division for the streaming era.
The Beverly Hills Hotel and its Polo Lounge are symbols of Hollywood, the intersection of executives, celebrities and the ultimate power lunch. So it was a fitting place for a meeting between Brian Robbins, the newly anointed president and CEO of Paramount Pictures, and Emma Watts, the president of its motion pictures group.
Following the unceremonious ouster of her former boss, veteran studio chief Jim Gianopulos on Sept. 13, the future of Watts became the focus of much speculation around town. Many assumed Robbins would bide his time letting her go, given his lack of experience making big-budget studio event pics. But after his lunch with Watts at the Polo Lounge, less than two weeks after Gianopulos’ exit, she was out.
Studio culture can be brutal. Nearly all newly appointed studio heads reshape the ranks upon their arrival. That includes Gianopulos, who joined Paramount in mid-2017 after running 20th Century Fox for years. Robbins — the child actor who rose to Nickelodeon chief before his ascension to Paramount chief — is moving much more quickly. In addition to Watts, he quickly cut ties with communications chief Chris Petrikin, who, like Watts, was a Fox alum, and animation president Mireille Soria.
Robbins is lucky to have been handed a well-stocked cupboard of potentially huge 2022 and 2023 movies that largely were put together by Watts and Gianopulos. Whether Robbins — who continues to run Nick and oversee family content at ViacomCBS fledgling streaming service Paramount+ — can persuade A-list talent, filmmakers, agents and producers to work with the studio beyond that is to be determined; the big reveal will come when his regime begins announcing projects. For now, many remain skeptical; on the film side, his credits include Coach Carter, while he directed the critically panned Eddie Murphy hit Norbit, which earned nearly $170 million at the global box office in 2007. His Paramount Player years included Dora the Explorer and What Men Want.
The flight of top-level executives appears to be over for now, while sources close to Robbins discount speculation that he cares only about growing Paramount+ at the expense of theatrical. (ViacomCBS doesn’t break out Paramount+ subscribers but said in its Aug. 5 earnings disclosure that it had 42 million paid global streaming users for services including Paramount+ and Showtime.) Sources insist Robbins has no plans to release Top Gun: Maverick or other event titles simultaneously in theaters and on Paramount+ once the pandemic is over and that he believes in an exclusive cinematic window (how lengthy he thinks that window should be is unclear).
He also intends to stay in the tentpole business instead of relying solely on such small- and midsize budget family fare as PAW Patrol: The Movie, a film he made at Nick that has been a sleeper box office hit — and reportedly was one of the reasons he got the studio chief job. The movie was released day-and-date in cinemas and on Paramount+ in early August and earned more than $117 million globally against a $26 million budget. ViacomCBS said the film attracted new subscribers to Paramount+ (the company didn’t release streaming numbers).
The star-packed roster of titles Robbins inherits includes the next installments in the Mission: Impossible, Transformers, Quiet Place and Teenage Mutant Ninja Turtles franchises, plus the long-delayed Top Gun: Maverick. There’s also The Lost City of D, a romantic actioner with Sandra Bullock, Channing Tatum and Brad Pitt; award-winning filmmaker Damien Chazelle’s drama Babylon, starring Pitt and Margot Robbie; and an untitled movie for late 2023 starring Ryan Reynolds and John Krasinski. And the studio is on track to make J.J. Abrams’ new Star Trek film for 2023. Add to the mix Dungeons and Dragons and the superhero pic Secret Headquarters, for which the studio harbors hope to launch a franchise. Robbins has been making calls daily to Tom Cruise (Top Gun, M:I) and is getting to know others, like Bullock and Krasinski.
“By far, we have one of the strongest slates of anyone rolling out in the next 12 to 24 months, and I’m looking forward to discussing how we’re going to maximize its impact and keep building for the future,” Robbins wrote in a recent companywide email. Adds an insider on giving big films an exclusive theatrical release, “These are all movies that are meant to be seen on the big screen” and Robbins is “determined to make sure people experience them that way.”
Those familiar with Robbins’ thinking say there is no plan to hire a No. 2 to replace Watts, a force in her own right. “Robbins wants to be the guy in the room and hear the pitches and make the deals,” says another source.
In past eras, a major studio such as Paramount might release 25 to 30 titles a year, making it nearly impossible for one person to do the job. But the business has changed — even before the pandemic — with most major studios scaling back. Disney, for example, only releases about 10 titles a year yet is often the town’s top box office earner. (Sources suggest 10 is a good target for Paramount once box office normalizes.)
Robbins is known for surrounding himself with executives he trusts, then fostering them. Instead of looking outside to replace Watts, he promoted her proteges Daria Cercek and Mike Ireland, whom he was impressed with, to co-heads of the motion picture group. The duo previously served as co-presidents of production under Watts. And he tapped Nick Animation chief Ramsey Naito to succeed Soira and run Paramount Animation in addition to her ongoing duties.
He likewise did immediate housecleaning when ViacomCBS chief Bob Bakish tasked him with recharging Nickelodeon in fall 2018 and hired Naito, a longtime colleague who has filled the Nick pipeline with more than 70-plus new projects.
Hollywood’s film industry has always been suspicious when a studio head comes from the television side of the aisle, although Robbins stands apart in that he has also made movies, whether as a producer or when running Paramount’s youth-centric label Paramount Players during the Gianopulos tenure and prior to Nick. The track record is mixed; Michael Eisner dazzled as Disney’s film chief after running ABC; years later, cable mogul Rich Ross flamed out at Disney.
“Brian may do a great job, but can he make the big bets, which are the most profitable for a film studio?” asks one film financier. “Paramount needs new IP. When you make a $100 million-plus movie, you’re committing to a $100 million-plus marketing budget, so you’re in it for at least $200 million or more. You can’t just just have a family studio. You never know what an executive can do until they do it.”
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Originally published: September 13, 2021.
Additional source: The Hollywood Reporter.
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