Paramount Strikes Major Deal with Charter: What This Means for Paramount+ Subscribers

Los Angeles, CA – Paramount has announced a new multi-year distribution deal with Charter Communications, a move that could potentially impact the company’s strategic options regarding a possible buyout from Skydance Media, Apollo Global, and Sony. The agreement between the two companies ensures that Charter will continue to carry all of Paramount’s networks, including Showtime, CBS, and Paramount+.

Financial details of the deal were not disclosed, but industry analysts see this as a significant win for Paramount, particularly in light of Charter’s previous negotiations with Disney. Last year, Disney pulled its owned and operated channels, such as ESPN and ABC, from Charter Spectrum cable systems during their distribution agreement dispute. The standoff between Disney and Charter was eventually resolved with Charter offering select Disney streaming services at no additional cost to consumers.

For Paramount, the Charter distribution deal is seen as critical for the company’s future plans. Analysts believe that the resolution of this agreement could pave the way for potential progress on bids from Skydance Media or Sony/Apollo. The newly instated Office of the CEO at Paramount, led by a trio of senior executives, may now have more confidence to move forward with long-term plans.

MoffettNathanson analyst Robert Fishman noted that Paramount has successfully averted potential risks that come with negotiations, particularly concerning the provision of streaming services like Paramount+. The deal with Charter not only secures the company’s linear cash flows but also avoids the dramatic blackout that occurred during previous distribution disputes.

Overall, the new distribution deal between Paramount and Charter is seen as a positive development for the company as it navigates through potential buyout options and strategic decisions. It represents a significant step towards ensuring stability for Paramount’s networks and services in the ever-evolving media landscape.