Paramount and Showtime streaming services are being merged as the company looks for a greater integration between linear television and streaming in an increasingly crowded landscape.
In an internal memo obtained by Yahoo Finance and first reported by Variety, Paramount CEO Bob Bakish wrote to employees:
The new offering and name change will only be launched later this year and will only involve the premium tier of Paramount and the SHOWTIME linear network in the U.S.
Bakish's memo did not outline any new pricing structures for the offering, but said additional details will be shared in the coming weeks. On February 16 there is a chance that the company will report quarterly results.
In a separate staff memo, Chris McCarthy, who serves as President and CEO of Showtime and Paramount Media Networks, explained that the rebrand will allow Showtime to use more resources in order to build out the brand.
He said that to do this, we will divert investment away from areas that are underperforming and account for less than 10% of our views. We have started conversations with our production partners about what makes sense moving forward and what shows have franchise potential. After the news, the stock of Paramount was little changed after-hours trading on Monday.
Alexandra is a Senior Entertainment and Media Reporter at Yahoo Finance. Follow alliecanal 8193 on Twitter and email her at alexandra.canalyahoofinance.com.