Will Skydance Transform Paramount, CBS Into A 'Modern' Media Company?

• by Wayne Friedman , Staff Writer, Yesterday

Could CBS make a dramatic move now with Jeff Shell at the helm as president of Paramount Global -- in cutting back on programming in certain time periods?

For years, TV network executives floated the idea of cutting back on programming/production costs.

That in turn has meant reducing the time periods -- especially in prime time -- where it generates major value from advertisers.

In 2022, Jeff Shell, then CEO of NBCUniversal, mulled the idea of giving back the 10 p.m. hour to network affiliates.

Ultimately -- for a number of reasons -- NBCU did not make the move. Hollywood producers, agents, and talent resisted this approach.

In addition, NBC had a long-time major relationship with “Law & Order” producer Dick Wolf, as the network where much of his programming airs.

Much of the 10 p.m. time period continues to be filled with crime/procedural dramas for networks including ABC, CBS, and NBC. (But not Fox).

For more than a decade, however, there has been a rapid decline in viewing for prime-time programming, and especially in the 10 p.m. time period.

Currently on CBS its 10 p.m. weekday lineup includes “NCIS: Origins,” “FBI: Most Wanted,” “Elsbeth,” and “Blue Bloods.”

Now two years later, with streaming platforms continuing to make gains, there is a higher expectation that Shell could make some dramatic, industry-shaking moves at CBS.

This would work with the vision of the new incoming Skydance ownership of Paramount Global. CEO David Ellison wants to transform Paramount and CBS into more of a “modern” media company. But that would also have ripple effects.

If indeed CBS gives up time periods, longtime affiliates would need to re-evaluate their production/programming needs in terms of being able to foot higher programming costs in filling time periods.

Without high-value prime-time shows, local/regional advertisers would be shifting their media campaigns elsewhere.

Do local TV stations then need to develop their own TV shows, or perhaps tap into the national TV syndication market, either purchasing other original or library programming to fill those time periods?

The flip side to all this is that legacy TV broadcast networks are still generally in a positive revenue-generating position. Prime-time shows act as a marketing launchpad of sorts for their TV series that then move to their respective streaming TV platforms.

Prime time, however, continues to trend down due to cord-cutting -- which in turn has meant declining advertising revenue. Long-time TV network marketers continue to seek more reach -- and that means tapping into streaming platforms.

The betting this time around is that big show-stopping changes are coming under Shell. It’s a new TV season.