PRO Tip Sheet: 5 Insights From This Week

This week we reported on Paramount’s options after the Skydance window closed, on what media executives got paid in 2023, on how the NBA’s rights deal is impacting live sports and why Wall Street turned its back on Disney’s streaming profit milestone 5Insights From WrapPRO]( More big entertainment companies released their quarterly earnings. This week we delved into Paramount’s options after the exclusive negotiating window with Skydance ended, which include a Sony-Apollo deal or Office of the CEO management. We also detailed what major media executives got paid in 2023, reported on how the NBA’s $76 billion TV rights deal is impacting the future of live sports, explored why Wall Street knocked down Disney’s shares despite its streaming profit milestone and explained how Max is the first streamer with its bundle with Disney to shy away from the “everything for everyone” game. — Alexei Barrionuevo 1. [Paramount’s Options: Apollo-Sony or Skydance? The CEO Office Might Win Out]( By Waxman | Source:WrapPRO]( - Paramount's board is now considering a $26 billion offer from Sony Pictures Entertainment and Apollo Global Management, alongside an internal plan from the newly-formed Office of the CEO to address the company's $14.6 billion debt through cost-cutting and asset sales. - The CEO triumvirate's plan, which seeks to reduce debt, explore strategic streaming options and restore dividend payments, is receiving positive feedback from the board as an alternative to selling to Skydance or Sony-Apollo. - While Sony and Apollo's offer is complicated by regulatory barriers, including Sony's Japanese ownership and CBS ownership issues, Paramount's situation remains unresolved and there is no indication there will be a decision anytime soon. [Keep Reading]( 2. [What Every Major Media Executive Got Paid in 2023]( By Lucas Manfredi | Source:WrapPRO]( - Despite production halts in 2023, top media and entertainment executives saw a 16% increase in total compensation, with 21 executives amassing $641.82 million, highlighting ongoing scrutiny over executive pay packages amidst industry-wide challenges. - Charter Communications' CEO Chris Winfrey led with $89 million in total compensation, followed by Endeavor's Ari Emanuel with $84 million, reflecting substantial pay jumps mostly due to stock options and dual roles. - While shareholder support for executive pay proposals increased slightly to 90% in 2023, concerns persist over diversity and the effectiveness of annual “say-on-pay” votes, prompting calls for more periodic discussions on compensation practices. [Keep Reading]( 3. [NBA’s $76 Billion TV Rights Deal Is Setting the Future for Live Sports]( By Kayla Cobb | Source:WrapPRO]( - The NBA's TV rights negotiations have escalated to unprecedented levels, with a rumored $76 billion deal over 11 years attracting major players like Disney, Amazon, Warner Bros. Discovery, and Comcast. - Disney, Amazon and Comcast are leading contenders with offers surpassing $2 billion annually, posing a threat to Warner Bros. Discovery and highlighting the high stakes involved in securing lucrative sports rights. - Beyond financial implications, the NBA's quest for global expansion aligns with streaming platforms' hunger for flagship content, reflecting the broader trend of live sports becoming essential in an increasingly fragmented media landscape. [Keep Reading]( 4. [Wall Street Turns Its Back on Disney’s Streaming Profit Milestone]( By Alexei Barrionuevo | Source:WrapPRO]( - Disney's entertainment streaming platforms, including Disney+ and Hulu, turned a quarterly profit for the first time, but Wall Street responded negatively due to ESPN+'s ongoing losses and projections of continued overall streaming deficits. - CEO Bob Iger emphasizes a strategic shift towards sustainable growth, focusing on cost-cutting measures and content quality amid the challenges of a post-strike recovery. - While Disney's Experiences segment, notably theme parks and cruises, saw robust growth, the company faces persistent struggles with ESPN+ and linear TV networks, underscoring the complexities of balancing traditional revenue streams with streaming ambitions and shareholder expectations. [Keep Reading]( 5. [With Disney+ Bundle, Max Is the First Streamer to Get Out of the ‘Everything for Everyone’ Game]( By Alexei Barrionuevo and Adam Chitwood | Source:WrapPRO]( - Warner Bros. Discovery's partnership with Disney on a streaming bundle reflects a strategic move to combat subscriber churn and ensure survival in a contracting streaming landscape. - The bundling strategy allows WBD to refocus on its strengths in premium drama while leveraging Disney's expertise in kids and family content, indicating a shift towards specialized content offerings to retain and attract subscribers. - As WBD makes progress in its streaming business, the bundling strategy shows how it is trying to compete against tech giants like Amazon and Apple, emphasizing the importance of both content and distribution in the evolving media landscape. [Keep Reading]( With a focus on delivering actionable intelligence, the PRO Tip Sheet empowers readers to stay ahead of the game in the industry. Want to go deeper? 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