Paramount Global (PARA) 8 Aug 242024 Q2 Earnings call transcript

Good afternoon. My name is Felicia, and I'll be the conference operator today. At this time, I would like to welcome everyone to Paramount Global's Q2 2024 Earnings Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Jaime Morris, Paramount Global's EVP, Investor Relations.

You may now begin your conference call.

everyone. afternoon, Good taking second for to us join Thank XXXX the earnings our quarter call. for you time

Joining me available Naveen for Chris today's schedules the discussion are Paramount's have we website. George that addition trending and earnings note release, McCarthy supplemental Co-CEOs, Cheeks; our our Please CFO, information Chopra. containing in to on and Brian Robbins,

and and are to statements made certain are we Before forward-looking that more our you statements remind detail start risks this SEC. filings afternoon, that uncertainties. involve in discussed with risks this uncertainties I call These want in on the

Some focus be in and case, can of found section Reconciliations Investor financial which in of can earnings in these each Relations our schedules, today's information, or release remarks on adjusted the of supplemental found in measures be our our will non-GAAP website. financial trending results. contains

over will turn the I Now Brian. call to

Good my the and on the afternoon, DXC I'm to plan. for the and and call. strategic you look of we on Robbins, I'm updating we optimizing have our progress asset streamlining our CEOs, mix. and our earnings That quarter forward you fellow organization, the joining second everyone. includes Cheeks. Today, Thank results here quarter transforming Chris with Brian made George McCarthy

moments since been jump we in, our plan have the Stockholders We aggressively out with June. advancing spend transaction But before we'd few we at in a it laid on this Skydance Annual to early Meeting Media. of like

Global includes XX-day definitive agreement which merger X, you a As a know, period. with July announced the of Paramount signing on go-shop Skydance,

the strategic to business and next to half deal we are teams support usual. close our first the plan, of We RedBird year. as meantime, In the and the Skydance continuing operate expect in

progress. get let's quarter and of into financials take details through the more our Naveen that, will us our in results Then depth. With share second

company both highlights strong driven adjusted saw XX% growth we quarter, our Paramount+ in total few DXC. revenue A results in include and by increased our improvement year-over-year. in content. of the OIBDA, terms In XX% financials largely

TV, renewed to theatrical. affiliates, show of our continues we our and streaming long-standing strength And Our expanded content Charter. across partnership with largest one and

the As partnership this continued carriage is very example Also portfolio doing been Charter modernizing a distributors, stations. multiyear cable our of and we've around Paramount+ linear includes broadcast linear of essential Charter's Labor innovative said focused Day, our will that. our tier relationships and networks with and how prime of ad-supported with available operated renewal we before, The to customers. we're on be CBS-owned

delivering it lower engagement, to to distributor we And linear them enhancing And the road as our we're renewals. big our costs, the partnership streaming. churn. for yield broad map for acquisition customer more providing much has we're for lower even consumers, and ways expand this one reach potential across value Together, watch potential us, view our and hits and future

Charter, addition week, a last the across network In affiliations television XX with country. markets just Nexstar multiyear to to CBS agreement renew in we announced

with we So our have partners. to continue momentum good

upfront the call I'd Chris plan. to of Now over turn through you the and to to the like highlights take our

good you, afternoon, and Brian, Thank everyone.

relatively line sports with pleased a volume the on were blended evolution and in up and CPMs of new broadcast, scale market were upfront our driven are We which were strong. the entrants. of results, context ad of trends the the in basis, and last by particularly Linear year, with

reach our scale across billion mix offer secured streaming healthy. marketplace video. We The quality of the and was pay assets. reflecting premium free, $X the most excess commitments of portfolio, digital both and our With our the we of also in across efficient

the annual starting efficiencies Skydance. against company. run June This our $XXX organization. that savings million we've progress announced by We through with walk the identified in included cost we're across of in in streamlining billion the let's $X making $XXX strategic identified million Now plan, rate is the cost

U.S.-based head XX%. technology take we approximately marketing and reducing the actions streamlining by first, our count largely other To savings, and are these will legal, weeks will our areas: our functions And communications; workforce corporate finance, support reducing These be in the focused we of coming in realize functions. completed end second, redundant structure, the within by and on place are year. X primarily

As are to make. difficult you decisions these imagine, can

a have incredibly the they We for these our at necessary are to Rather, reflection of people contributions. not and actions their organization future. talented Paramount, are transform

Next, transforming streaming.

In was the segment. million We are X performance million pleased the QX, growth with for totaled the we've our profit and past $XXX and quarters. of $XXX made Direct-to-Consumer year-over-year that progress nearly

up industry For service, our delivering highest X.X that row, X% billion the in broad driven Paramount+ global consumption films. TV sign-ups, And a continues the the distributed in to series big marks our fourth most and XXXX. for be FAST of That's and leading by first Pluto ever. year-over-year, blockbuster widely half is the hit year hours

Now confident looking that XXXX. reach profitability will ahead, domestic in Paramount+ remain we

addition, are In strategic are to active our partnerships to in potential engagement, scale we and discussions. with and accelerate further multiple increase exploring profitability parties and

asset our optimizing mix. Finally,

over our the we are as be served We will Global quarters. And We better strategic to future. with highlight The our coming through the linear. in reshape portfolio the over to about set today of portfolio on call strong And but have key were a strong you coming forward balance evaluating The the ahead compete aggressively what's look talk of to we futures or of on quarter assets businesses, and undeniably make George goal consideration with and our centerpiece plan our I'll that our progress in to updating wins business. are must content up rise best built brands assets under improving of another turn next. own the their exciting sheet. while Paramount up the now our against

Chris. Thanks,

advantage. first our as as hits. competitive is centers Our on This well best: do big, priority core our creating mission what we broad

finished the new XX #X as Sydney. the Tracker, of most season Now in in the X broadcast series wins. QX, NCIS Elsbeth total with 'XX-'XX broadcast X of and network year, consecutive XXth for we watched shows the key had a and viewers the CBS number with top

Paramount+, the Chi. Kingstown, slate return strong excellent Drag The of RuPaul's including of Race Mayor and Minds, Criminal On our results, drove Evil,

shows also South We Final P+ new Obesity, brought well. Marley: and The Moscow Knuckles like Park Champions Love and in as UEFA from Gentleman One special, Hedgehog launched League series to the the the Bob spin-off End Sonic Showtime. QX of A the

Daily IF is domestic delivered over over performance, box office Over saw worldwide office best box million Xx. franchise #X On significant John posting with is engagement performance while date. Paramount Day Jon grossing $XXX And Pictures, another last Quiet launch. Krasinski's Place: season industry to expectations Comedy and Central, outperforming Paramount+ by The in Stewart on A Show beating gains One at

slate, NFL box off college returns Sheridan's Big for our series new biggest Now Also slate new in in a to Clooney. are Sin. Landman finales football. primetime Taylor to office Evil And from recent the keep this This seasons hits, Dexter: ever the as most the of with season going, as The of yet CBS George kicks Paramount+. slate well The Ten series full Agency first Team. and the King heading and momentum includes new the Lioness in ambitious we in September, new Original Tulsa franchise November series season hit plan new December, Showtime and Paramount+ Showtime's with October series SEAL of

I've next The schedule primetime strongest is CBS of one season's on the seen.

Johansson. to the viewed the contemporary Chris voice In year sequel addition to we're a #X X. profitable That's of the its reimagining Scarlett the films history. Gladiator universe. And Ridley to and NCIS of starring in Hemsworth arena X, shows the will ever of Sonic Then series just highly Hedgehog cast Scott the anticipated a Young followed comedy the to November, one by on releasing for theaters, studio's most classic Paramount. the XX the the we'll with Smile the one Transformers TV, which returns to first film trailer Sheldon, nearly returning with finish most and Matlock XX first series, saw In new animated spin-off Sir soon include become in movie addition coming a years, new of the X, the

want content and we're business, to deliver at We've millions to around continue center. for of the really in fans commitment grateful we Look, We'll our for world. with contributions. the the underscore creatives best-in-class incredibly business operating the got best their to the

turn Thanks much I'll so for joining today. with it And that, over Naveen. us to

Thank you, afternoon, good and George, everyone.

and and margin. growth business, in top our strategies results which distribution adjusted line evolution to translated our monetization power Financially of in is improvement speaking, XX% OIBDA, creative execution, of the this reflecting operating growth and demonstrate Our significant ongoing DXC healthy improved QX strong continued delivering our engines.

the since turn Additionally, leverage balance of QX. a improved X/X by of sheet end

always, press QX you'll results comprehensive find a in of our As review release.

to going of on focus note. few So a areas I'm today,

viewing company and trends negatively from In First, comprised QX, domestic a advertising. increased TV with impacted along hours advertising in benefiting Direct-to-Consumer across grew in advertising the fact Pluto domestic of basis, to X% overall by in Paramount+ that CPMs. total that were sports declined Media, higher In fact dynamic TV, the the XX%, has than nonsports QX. year-over-year inventory smaller advertising a masked it share This quarters. recent On quarter. growth advertising somewhat relative improved

of second 'XX Looking trends ahead, new sports, live QX. to contribution with advertising to fall of and advertising spend. to the And expect similar in improve in QX be from return DXC growth we we expect the linear, programming in half political

and me X% which grew subscription QX. to let Next, in turn revenue, affiliate

a did Sports XX% This points. place by year's the Showtime due Paramount+ the second QX last rate basis reminder, a growth reduced As XXX quarter year with subscription the revenue that XX% end grew quarter, this subscription year-over-year. event not revenue DXC exit pay-per-view of take to XXXX. from up in our comparison at Showtime included

quarter than of X.X the subscribers, million million XX.X finished Paramount+ QX. lower which the is with end

of contributed were of Korea, quarter, Now the which OIBDA. was the South biggest factor X with exit subscriber far a full number and partnership year. bundle for sizable our growth this but subs both Tving of planned by impacted our The hard which limited in into factors expectations built revenue

churn though hindered that elevated by Second, of for QX. joined still domestic sub Super growth, cohort the was subscribers in the from Bowl positive,

net Paramount+ strike. impacts second cadence We to return of content subscriber from that we a beyond we're to year more consistent benefit expect the as in the of the of half growth now original the

for growth year. subscriber normalized We remainder international the also of expect the

our XX% the as of to Paramount+ in the well expanded of shift of effect in global mix higher a price in quarter, reflecting base as the markets. took the increase that ARPU subscriber QX ARPU international XXXX impact

cost as required and subsequent and that take new $X.XX affiliate a essential MVPD revenue increase the available be the Paramount+ Recognizing will the Charter seeks from ad-supported Charter users ongoing trends. bundle will to counted subscription expect of to domestic the customers existing customers. only bundles can the across Paramount+ international our distribution similar Paramount+ grow tier Monthly markets first we Paramount on effect segments. We new Paramount+ who by of type is and TV through price will changes later move price important the customers. In to the Paramount+ no given subscribers be many an will ad-supported new distribution an Monthly the in with price. we linear Existing bundle in our full transition applies basic viewing announced until will at streaming. pricing ad-supported the to current and on participants from believe the our These incremental the year-over-year, impact price this QX, because customers for same largely June, with changes consumer. and in efficient in the shared experienced increase tier tier future Charter, bundle an to TV for month. MVPD TV and we've modernize And grandfathered pricing increase new $X.XX. that our the yield pricing X% agreement ecosystem, subscribers, in between make Paramount+ time a on our MVPD Showtime to to adopted will announced activate are be deals Accordingly, and ecosystem both approach. to tier increase U.S. of Media way financial don't $X long-standing be a segment, benefits the from QX, where meaningful of our this in We revenue which will a as we've Media to multiyear relationship. Starting cable ensure implement $XX.XX to with pay channels reflecting distribution DXC declined the Paramount+ distributors QX

impact the modestly QX, Looking exiting dynamics of I reflecting and expect growth ahead TV affiliate to just to mentioned QX, Media the revenue to Showtime we decelerate relative Sports.

Next, on licensing. I'll touch

declined licensing other Our XX%. and revenue

bumpy deliveries. growth in to I've case be to XXXX. As that the QX noted licensing QX timing were in to previously, there of the be the relative fewer to continued as deliveries And of due period revenue tends

included in the For also example, the The of impacted QX of a lower delivery Jack final by of last licensing year Ryan. quarter season secondary of volume market. was

to We although return fall modest of the expect expect licensing half growth QX, we full to the the for do a year, with new second CBS a licensing in of on return in revenue the particularly decline revenue year. in slate

In to streamline with incremental George opportunities identified you've organization cost also $XXX yield we've cost we're as are revenue, And focused efforts unlocking our described, parallel heard to of million reductions. maximize savings. and to Chris, that annualized on expected highly the Brian

by and included $X of them. aligned is million we're cost realize identified Skydance, to quickly efficiencies in the Importantly, this billion moving in $XXX

to can reach in QX, we that enter which we million over weeks full these the cash million the connection expect $XXX charge reduction of these a in with rate the execute next in $XXX to approximately expense we million several of actions incur quarters. impact occur such will $XXX restructuring XXXX. to actions, the run We coming as And expect

to The quarter. recorded goodwill charge I part the our of want last QX results is address the in impairment

fair market assessed indicators affiliate including we value impact total value recent transactions factors could the the Skydance and by company the the our units, in QX, reporting During indicated the marketplace. that linear relevant of estimated

network a supporting TV at charge our recorded we Media. unit impairment result, for billion a cable goodwill noncash As $X

before on some year. questions, for our the moving additional remainder regarding expectations of like Now I'd share to information the to

OIBDA. was Paramount+ the profitable the DXC XXXX. profitable means content QX of to will free relative Our in although DXC course XXXX, quarter we're launched expenses, first continue segment generate profitability losses for segment we XXXX. domestic profitability expect in this QX our company And Paramount+ quarter, due And full since achieve in in significant cash on the growth flow the to years X.X year will timing to And and ago. progress total to grow

approach balance create XXXX, investing We continue results. is content We on transaction our improving the on goals execution deepening interim believe period focused the that sheet. We but finding during profitability, assets, long for over We're key deleveraging environment, value not standing expense to for our this operate which in achieving means efficiencies, dynamic producing in clear still and it's this before focus a closes. our partnerships will shareholders term. remain

With open that, for operator, line please the questions.

Thank you.

Guggenheim. The first question comes from Michael Morris from

I about business referenced, like some my after between wanted those the about also, what Skydance the how first things on when that are teams Is when question. long-term close. making business? then goals follow that aligned and that that's in with up transaction these comments will And that you to the first you're involved hold for uncertainty ensuring motivated you on period So steps you that period? strategic there's you the completed? the are the may keep these the now operating taking things how How sure is Skydance interim during the do Brian's are during transaction partnerships future

maybe for at goodwill were Naveen, the And indicators given on has the why And going while, indicators? triggered the you then linear that, with have for as mentioned? the that. the noted been time on marketplace Could quite beyond triggered a on transaction do expand you were the What agreement? that that now the Did recent part you was Charter charge, it to cord just that recent of cutting all? was affiliate what in

first. I'll Sure, jump This Brian. Mike. in is

It's the business. said supportive of we remarks, continue business very the usual and strategic as of our projects plan. us, course Skydance is greenlight to I normal for in prepared As in

exploring aggressively very Now optimize ongoing would We've plan are actions that the in value terms the and with strategic on. But advancing will organization, the prepared we streamline teams. just mix. our shareholders in it we question, Paramount+ plan them expect part we the to about future, limited you your believe consult for discussions of any Skydance term. second involvement, long create to are M&A during our what transform is There remarks And we for things our the partnerships focus of with our talked asset transaction. will to our as our specific over on the

Brian. Thanks,

Mike, so goodwill me let on And your going couple respond the a really to of There's question things impairment there. charge. on

value But linear drives the need the magnitude the transaction. reporting because is other of that's implied this obviously, the first, So really units analysis we transaction implied for to that by here. of are is enterprise part entire accounting the our on the works value the the charge, the reconcile that's way this of of goodwill the by individual with declines is impairment company Skydance the value part the

is combination goodwill noncash it's those network cable to specific And unit. of what So really our the in billion that the things. $X that impairment results reporting is charge basically

The from comes Fishman MoffettNathanson. Robert question from next

all you're more broadly you to? were you Paramount+ just licensing you are licensing the approaching Anything share JV content? how exploring Maybe the that of that on in context that evaluating can or speaking. talking Or the just structures other originals of

Charter any within content about whether to sports note, updated using And -- of other as you on Paramount+ distribution NFL influence to is part agreements are that those that TV strategies the a thinking the importance premium Paramount+ separate thoughts or deal trying then ecosystem. just include guys or or understand pay how not given future the the and and

first Robert, pass George that, then it's half piece. sports Chris. to to the and about talk I'll of I'll the take

date XX our subscribers. both to our global is * had those here. and start content, the our of me hard work originals the that Paramount+. and It's library, lot business. amassed we're And with driving -- doing very the let a by million of that power our with driving subscribers saying we've success First, pleased We've

profitability. path think Now look there's forward both an in opportunity we're to and globally. domestic that to domestic on just we as we hit But in XXXX, accelerate

form and ventures. series And looking the better profits value greater reduce in scale, the here our long-term improve so costs offering, partnerships our And at content get to in both term and strategic or and we're joint increase they the whether of come opportunities, a short term. of benefit the really drive long is

opportunistic and we're about And very opportunities these be to we're that. exploring all going

of partnerships licensing. a that involve to licensing series So could be in addition that. content we'll includes also that But some potentially

me let to George over talk it So pass to sports. about

Chris. Thanks,

So strategy our the so broadcast on that growth. and point, and unduplicated basically, sports streaming together resolve drive is and audience linear and here focus streaming really our an

we of we're both looking because on look our beauty seeing portfolio, both So this at when is we're sports it growth sort the of through at sides. angles that

on NFL up For example, Paramount+ CBS last NFL XX%. more than on year-over-year, X% is season, streaming the audience was up and

affiliates, our for growth and seeing we're streaming. growth seeing we're So in

Next question comes Stanley. Morgan Ben from Swinburne from

bit tell share could extent cash how to flow year where kind of that us and thinking year-end, little you a might the Naveen, you you're you think second with the at can end free half about leverage of about us?

that South And plans. update about losses improve I your Do think you know the you would are and of be the the front areas in to well. international the reduce you there? then have mentioned United And or streaming an talked reevaluating the on in kind this or an I the see kind what's there? guys update Just of maybe as But optimize States that interested one business changes of Korea. guys opportunity profitability evaluating outside

Yes.

flow, international then on Chris question over first on of the take it thoughts and comment I'll Ben, streaming. turn to your I'll to So cash on part our

playing pretty to beginning adjusted -- year our the straightforward. cash significant answer the said that out And alongside continue that in the in flow growth We year think flow I the of was deliver out 'XX, that at free plan actually -- way. well in I growth cash is excuse OIBDA. to me, see playing OIBDA

expectations. change our no real to So Chris?

global we with Naveen. have Thanks, and -- expect Paramount+ excuse footprint. global -- have, plan or me, a to footprint continue we today, have Pluto. to moving forward, Ben, we a listen, we And

content Now footprint overwhelming U.S. are of be majority driven of as going options to are how to today going they very change. be We're all looks out that in economics about may exploring the space. here. The the our of opportunistic the market

And want internationally. each thoughtful market we so a about we at take be -- approach to how look

reducing that tremendous already platforms our venture in own scale with our who in value great, a not or by Or amount could form greater to come in the reach of we joint have drive and partnerships come Now have strategic platform, case, could long-term get of in which greater can the and be maybe which they having case, SVOD profits. cost a a more one with form players, platform. of increase and we'll

many in different So partners we of as all to have exploring And progress. lots area, this that. updating look forward of interest and from we we we're you

LightShed Next question comes from from Rich Partners. Greenfield

couple. got I a

allocation, turn you is now linear trying on going revenue from very in scheme of I'm billion help then just the subscribers. going million of think X billion how much what cost-cutting that all accomplish your Skydance those if the various to Skydance, numbers. And commensurate the those you're First, the $XXX be being think, reduction between giving could in you I the inclusive a a to media $X the own? between the million high as like with networks think billion to you actually on to, a allocation obviously dollars I to to of agreement Do referenced, there Just meaning just Paramount+ video the $X.X on Charter $XXX the this level, about pretty X to couldn't for to us Could million company talked XX shift affiliate understand meaning million difference $X you small understand this you've how a world. you trying now understand the without more Paramount+? is account of about divisions, subscribers. from Charter's I be about is Skydance. your you

it subs point, I is think does that as Paramount's are Charter's -- on subscriber counted? get a treated get or Or every housekeeping activate you you a that just and mentioned, that subscriber Paramount+ only is then And books?

of I'll Naveen. on try to it's Rich, those. all touch

So your one. with savings. it's $XXX on that's But starting forward sort moving of we're pointed that to cost million understand as out, savings, I you step think question on cost of important

working are reduction variety Those also of all long-term plans other are of time. won't a the that are point part material. cost same on We They our necessarily plan. They're happen in at significant.

well. significantly to $XXX you'll head -- costs think, the And are they $X We've go of headcount. opportunities related, as in those that helped count beyond Skydance see most in million that savings billion of there reduce I made but referenced. the areas think the is that comprise a near term have that other do And inform ideas plans, the has number we

Charter start those not on set P+ sort someone them, amount that sub. with we receive will that count do Charter then the subscribers way And who allocate a Charter to reverse meaning And if account this subs their fees they Paramount+ your activate they a as P+. associate we from to a respect question is, in they that when activate, deal, subscribers. of will, works the does credentials, the benefit, certain activate of as of to are yes, we count don't if With order, that you

segment. a will the bundle, be as financials between in and split externally result providing or from be TV like credentials see you'll in DXC Media segment is reported we're of that our deals Charter, the that revenue the Paramount What shared where a

comes The John Hodulik UBS. from next from question

Just to a question. follow-up Richard's

tell the -- deal? but maybe could us doesn't on you all just it's anymore the you matter anything Charter side, Charter and Just it pricing together, the blended got about linear on because

activate going or sub penetration get DXC sort to of well? then they there Or sort you consumption But going a engagement for guess is the the And of activate you one, to I then then get within And as paid paid. issue do guys have market -- they to guys standpoint, from sort sort number Once what to those can you do you drive are of Charter subscribers of once, forward. an base? service?

just sense that of the Just trying of overall what any I'm a color. get are. to deal economics really

sure, Naveen It's again. John. Yes,

to try me bit. little Let clarify a that

to broadcast deal, may remember deals going total and on our and That not structure be company premium helpful linear with I'm be and get is distributors, to the think I with into networks. largely that economics. any it about that specific to way used a focus cable we

of includes it all Paramount+. obviously, things plus, those Now

independent those things be I contractual said reporting, those And purposes, our our may as Media delineated so of DXC fees between, how and we segment. for for TV financial our allocate segment earlier,

revenue somebody whether It's part we the contingent on with activates receive not. not the So distributor. all is that economics the or of arrangement our overall of

comes Cahall Steven from The next question from Fargo. Wells

with it's is one have for half year, especially value Paramount+ expect just a into So Can much And the the And that housekeeping year few amortization how little of you you think content back that a to do Naveen, just this next you move a going grow in about talk value profitability. guidance the perspective, 'XX? heavier? more it. when you content on the of as on you on Paramount+ year an from

] be for in XX that from full year? Is you'll a profitable said XXXX. number for different [ as the in You Paramount+ positive X

things And then indicating decline affiliates, CBS Paramount+. even also, like reverse been have with out fees the are fair networks relationships think do margin. than margins station of higher about lot you to a CBS George, or streaming their to cost the think I those start How national and some because moderate what of CBS TV of there station programming? lot that shift should comp a is really affiliate

cash-generative cost a share those this economics, way I'm entering into about. especially fair cutting think you just all to company talked about what as you is that So mode is wondering and the more

the Yes. Steve, to address to Naveen. second and then it part George hand I'll it's the first start part. on

Paramount+, expense a on things in few of mind. in keep So content terms to

the obviously, is last there and XXXX have one, in half seasonality back in different our of sort was that a year did strike in on that remember we're 'XX, more given going going number relative a expense. impacted * to content year. Also to basis So we look content 'XX than highly is year-over-year 'XX it of just to

the it reasons a sports excuse segment back was quarter half one don't of as expense we of the In we as -- because QX was was So profitable the have in lighter that was the particular, me, profitable in Paramount+ in much in terms the DXC do year. of content. quarter

goal. is intended for is question, reasons goal the frankly, your be profitability and on, one the to driving is Paramount+ relates main why part to we're And in domestic that, obviously of focused a I other just this in the profitable which the business XXXX, of that the measure George? on profitability, that basis. but quarter not more think full a is is a year particular And important full sure year is making of

Sure.

we're the and affiliates changing of facing. our are dynamics So Steve, that challenges industry aware the keenly

as news Now this we've means to in our sports is continue and to to content got in with best-in-class programming a role this producing invest our reach. provide hit in partnership network maximum shows, And rights. investing

in the And is #X news is in content daytime, #X of fair Now on all of the CBS #X offering. by I terms late determined mean here night. our we're fair delivering is really value strength the good the in in value, prime, that fronts.

including sports portfolio but college and incredible NFL We have NCAA the led golf. an football, by

providing So charge best-in-class them. job to the we're that we again, content is for our affiliates justify sure that make our fees to content

last Thanks, question. Steve. we have time for Operator, one

from comes from Bank. last Kraft Deutsche question The Bryan

could. X, had I I if

one of licensing be outlook But licensing interim content the that lot Paramount's of don't Or period have know driver this over parties I kind the that the renewal I that currently you about the -- of merger? talked for wondering pursue -- is for growth to company. And just be up of regime? think or be I a second is the still to rest there third a coming the before And the that would year you pieces is the for for was with then licensing, whether if are sports you the and first, Would is realize couple be interested XXXX sports. related, company the this next years bit approaching in might will you talked Naveen you about moving rights something strikes. after will closes? revisited post relative Just importance prior how additional of a merger question in the

This Bryan. of question. I'll first take part is the Brian. the Sure,

for more owned through licensing on revenue, driving and operated or us, and advertising, more. is foremost, subscription about I affiliate not whether and For that's our of actually more first the content. think revenues. first-run channels, and we're focused It's our more either/or. relevance But content reach It's maximizing on platforms our value

do by increases also not that by people's of we other more and our that eyeballs it believe only demand then to the drive revenue our content demand. content third-party platforms. other it of on key. still but driving to platforms platforms. on then, to our we licensing And And our is windowing in to It's it been demand it's always and And from for in has And is license content to platforms, new we own. course, third-party fortunately will consumers, continue platforms from in us, key, demand and opening own back up

going we We're focused our given and of continue business to timing is licensing but creating license. always control be are for compelling a our performance, the very long dynamics So will content opportunity term, greatest to the IP, us. on power And that there's IP. reflected continuing in while to

sports And on this Bryan. on George then the is -- your question,

really, about sports portfolio. being opportunistic. We've So we say core feel good our we'll always said, that got first of current our But be franchises. would really marquee all, I

soccer and In recently closed EFL fact, with we A. deals X Serie

but the to is goal streaming. sports the open going be make giving for to this in broadcast we're and will always right disciplined that So approach always we our that portfolio both for ensure we're market, and sure take

out. I'm behalf on this you it thank co-CEOs, fellow And close to to my we'd like for George. is call And Chris. for of today. going us Thanks, joining our

As the strong the you half in very of our a against can from well see we're year, strategic results, first plan. off to our start executing

to our continue blockbuster biggest, We films company. power the the taken to performance strengthen some we've and the ratio. high that content this with And hit quarter that deliver reflects broadest hit of series of TV a actions the and

about have updating ahead, everyone, to joining will you, and that a our work clear-eyed are us, evening. for on Now forward and progress. looking look confident deliver. we're We additional Thank we the good we needs happen, to

Thank you, everyone. concludes today's call. This

lines. your now may disconnect You