Paramount Global CFO Says Ad Market Weak But Nothing “Close To” Covid – Deadline

Advertising is smooth, mentioned Paramount Global’s prime finance government, however the company’s mixture of broadcast, FAST, SVOD, and cable “puts us in a very powerful position” to climate the market, as does the sale of an even bigger than regular chunk of stock on the upfront.

“The macro environment is going to continue to be a factor. There are some who have suggested that the current environment is worse than what they saw in COVID. We don’t see anything close to that, to be clear,” CFO Naveen Chopra mentioned at RBC’s media convention. He’s referring to a remark by Warner Bros. Discovery CEO David Zaslav on the identical venue yesterday that the advert market at the moment is worse than throughout Covid.

FAST stands totally free ad-supported streaming TV, like Pluto TV.

“If you were just selling cable network inventory, this would be a much, much more challenging environment,” Chopra mentioned.

On the upfront, he mentioned Paramount’s strategy “is starting to pay some dividends… We did not really try to optimize for the last dollar on price in this year’s upfront. We recognized there was some uncertainty in the marketplace, and so we really tried to optimize for volume.”

A troublesome macro setting has been squeezing advertisers and media shares. Paramount is down a hefty 7.5% at $17.55 right now.

Chopra referred to as adverts cyclical “and we have seen cycles before, and they are not necessarily that long – a few quarters.” He mentioned traders have develop into “very, very short-term focused” round streaming spend and profitability. Content feeds all home windows, not simply streaming, and will also be licensed.

Rivals have elevated costs for DTC companies and Paramount+ will comply with.

Chopra confirmed streaming losses will peak in 2023. Given the place the stock is buying and selling, “streaming has negative value,” which is not sensible, he mentioned.

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