David Ellison

Source: Skydance Media

David Ellison

The new Paramount plans to reach its goal of releasing “at least” 15 theatrical films a year in 2026, the studio said this week in announcing its third quarter financial results. Also planned for the first quarter of next year is an increase in the US subscription price of the Paramount+ streaming service. 

The moves were revealed as the company reported its first quarterly results since completion in early August of its $8.4bn deal with Skydance. The studio said soon after completion that its goal would be 15 releases a year, rising eventually to 20, but did not specify a timetable.

On a call with analysts after the results were reported, new Paramount chairman and CEO David Ellison said that the studio had been releasing eight films a year when it was acquired by Skydance. 

On the call, Ellison avoided discussion of Paramount’s reported recent bids for Warner Bros Discovery. But asked about the company’s approach to mergers and acquisitions he said: “There’s no must-haves for us. We really look at this as buy versus build, and we absolutely have the ability to build to get to where we want to go.” 

He added: “We’re fortunate that we have the balance sheet to be able to be opportunistic when we think that M&A will accelerate our goals, but we’re also long-term disciplined owner-operators.” 

In Paramount’s letter to shareholders accompanying the results, Ellison said the studio’s 2025 film slate “has underperformed, with most titles expected to miss their lifetime profit targets. This presents an opportunity to recalibrate, and we are focused on making the necessary improvements to our future slate.” 

Paramount’s total revenue for the third quarter on a pro forma basis was $6.7bn, flat from the pre-merger third quarter of 2024. 

Pro forma revenue from the filmed entertainment division was up 30% year-on-year, primarily due to the consolidation of Skydance licensing and other revenue. 

Revenue from the studio’s direct to consumer businesses increased by 17%, driven by a 24% increase in Paramount+ revenue. The company said it expects to make incremental programming investments in 2026 of more than $1.5bn. 

Paramount’s overall net loss was $257m, compared to net earnings of $1m from the previous year’s third quarter.

 

 

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