Paramount (US:PARA)2021-09-22 17:52Summary of ViacomCBS Inc. (VIAC) Conference Call Company Overview - Company: ViacomCBS Inc. (VIAC) - Event: Goldman Sachs 30th Annual Communacopia Conference - Date: September 22, 2021 - Participants: Bob Bakish (CEO), Brett Feldman (Goldman Sachs Analyst) Key Points Strategic Positioning and Performance - 2021 has been a remarkable year for ViacomCBS, marked by a significant capital raise and the launch of Paramount+ in the US and international markets [2][3] - The company has a strong content creation capability, a rapidly scaling streaming business, and a legacy business that supports streaming transformation [3][4] - ViacomCBS benefits from a strong capital position, enabling investment in streaming opportunities [4] Management Changes - Key management changes were announced, including Brian Robbins as President and CEO of Paramount Pictures and David Nevins overseeing Paramount Television Studios [5][6] - The organizational changes aim to align with the company's strategy and enhance execution, focusing on franchises and streaming [7][8] Film Strategy - ViacomCBS is testing various release strategies, including simultaneous streaming and theatrical releases, which have shown success with films like PAW Patrol [10][11] - The company plans to maintain a 45-day exclusive theatrical window for most films, balancing theatrical revenue and streaming growth [14] Paramount+ Performance - Paramount+ has seen strong engagement, with diverse content driving subscriber additions and managing churn [15][16] - The platform's success is attributed to a mix of films, scripted series, unscripted content, and sports [18][20] - In Q2, Paramount+ added 6.5 million streaming subscribers, exceeding the previous quarter's growth [20][21] Global Expansion Strategy - ViacomCBS aims to expand Paramount+ from 25 to 45 international markets by the end of 2022, leveraging partnerships with Comcast and Sky [30][31] - The company is focusing on global content utilization to drive scale and margins, with a strategy to produce local content for international markets [27][28] Advertising and Revenue Growth - The ad-supported streaming segment, including Pluto, has seen significant growth, with Pluto expected to generate over $1 billion in revenue [40][43] - Streaming advertising revenues are projected to exceed $2 billion, driven by strong demand and effective content pairing [43][44] Sports Strategy - Sports remain a critical component of ViacomCBS's strategy, with successful integration into both linear and streaming platforms [45][46] - The company is managing escalating sports broadcast rights by leveraging both linear and streaming rights to maximize value [47] Affiliate Revenue - Linear affiliate revenues grew 9% year-on-year in Q2, supported by recent carriage agreements [48][49] - The company expects continued growth in affiliate revenue, albeit at a slower pace due to lapping previous distribution benefits [50] Conclusion - ViacomCBS is positioned well for future growth, focusing on compelling content delivery and leveraging its distribution capabilities [52] Additional Insights - The company is committed to a differentiated product strategy for Paramount+, combining news, sports, and entertainment [21] - The leadership changes are expected to enhance the company's ability to execute its strategic vision [7][8]