Paramount Global said that it sold $1 billion in commitment to buy streaming advertising in the upfront market.
Speaking on Paramount’s second-quarter earnings call Thursday, Chris McCarthy, one of the company’s three CEOs, said he was pleased with the upfront results,
“particularly in the context of the evolution of the ad market and the scale of new entrants.”
McCarthy said that linear volume trends were “in line” with last year, and pricing on a cost-per-thousand viewers (CPM) basis were up on a bended basis, with sports and broadcast showing strength.
(Paramount took a $6 billion write down on its cable business and 2Q ad revenue for its traditional TV business was down 11%)
While a flood of new streaming inventory was expected to depress pricing, McCarthy called the digital marketplace healthy for Paramount.
Also Read: Paramount Pitches Performance of Programming, Ad Tech (Upfronts)
With our mix of pay and free, we offer the most efficient reach across premium video,” he said.
On the earnings call, McCarthy said that Paramount would be implementing its plan to cut costs by $500 million, partly by reducing its work force by 15% by the end of the year.
He added that Paramount is in active discussion about potential strategic partnerships in streaming.
The company is also looking to sell off some assets.
“While we have strong brands and businesses, we must reshape our portfolio to best compete in the future,” McCarthy said. “The assets under consideration are undeniably strong with exciting futures ahead, but will be better served on their own or as the centrepiece of another business.”
