JACK: MY GUEST KNOWS ABOUT
QUALITY TELEVISION BUT FOR THE
NEXT 5 MINUTES HE IS STUCK WITH
ME.
PARAMOUNT GLOBAL PRESIDENT AND
CEO BOB BAKISH, TELL ME THE
LATEST ON ADVERTISING.
EVERYONE IS WATCHING FOR SIGNS
OF A SLOWDOWN NOT JUST ON TV
BUT ACROSS DOT.COMs.
>> THERE IS HEAD WIND AND
TAILWIND, WE CLOSED THE SECOND
QUARTER WHERE WE DID SEE
CHALLENGES, THE DIGITAL MARKET
IN PARTICULAR.
THAT WAS MACRO ECONOMICALLY
DRIVEN.
WE ARE SEEING CATEGORIES LIKE
AUTO STRUGGLING WITH SUPPLY
CHAIN, PACKAGE GOODS WRESTLING WITH INFLATION ISSUES AND
WITH INFLATION ISSUES AND
INGREDIENT COSTS.
ON THE POSITIVE SIDE, SOME
CATEGORIES, TRAVEL AS AN
EXAMPLE, JUST CLOSED OUR BEST
MULTIPLATFORM UPFRONT.
CABLE USUALLY TUCKS IN UNDER.
OF TWO CATEGORY TAILWINDS,
PHARMACEUTICAL CAME BIG FOR US,
THAT IS A BIG CATEGORY.
WE ARE EXCITED ABOUT THAT AND
WE’VE GOT POLITICO IN THE BACK
HALF OF THE YEAR AND WHAT IS
GOING ON IN THE MIDTERMS IS BIG
BUSINESS AND USUALLY THAT IS
BIG NEWS BUT WITH TARGETING BIG
BUSINESS.
JACK: NETFLIX AND DISNEY WILL
ADD CHEAPER AD SUPPORTED TEARS.
THAT VALIDATES WHAT YOU HAVE
BEEN DOING AT PARAMOUNT BUT IS
MORE COMPETITION FOR YOU.
SUPPOSE IT IS NEXT YEAR, I COME
TO YOU FOR THE PITCH, WHICH OF
THESE STREAMING PLATFORMS TO
SPEND MONEY ON, WHAT IS THE
PITCH FOR YOURS?
>> WE’VE BEEN BELIEVERS IN
ADVERTISING IN STREAMING FROM
THE BEGINNING.
PEOPLE WONDERED WHAT IT WAS
BACK THEN.
AT THE END OF 18, A $70 MILLION BUSINESS, WE CLOSED 21 IN $1
BUSINESS, WE CLOSED 21 IN $1
BILLION, ADVERTISING WORKS ON
STREAMING, AND IN REVERSE
ORDER, VALIDATION THAT WE
BELIEVED ALL ALONG.
AD SUPPORTED HERE ON PARAMOUNT
PLUS.
WE APPEAL TO DIFFERENT TYPES OF
CONSUMERS, SOME DON’T WANT THE
INTERRUPTION AND SOME ARE FINE
HAVING IT.
WITH RESPECT TO THEM ENTERING
THE AD MARKET, THE AD MARKET
HAS BEEN COMPETITIVE FOR A LONG
TIME.
WHAT IS IMPORTANT IS A STRONG
POSITION HERE AND LOOK AT OUR
ASSET PORTFOLIO, AND IN
STREAMING.
THE COMBINATION, THE ECOSYSTEM
PROVIDES 1 TRILLION A YEAR.
JACK: THE FUTURE OF
STREAMING/TELEVISION IS LIQUID
ABOUT LEGACY TELEVISION, I’M
JUST THE MAGAZINE GUY WHO TURNS
ON THE TV A COUPLE TIMES A WEEK
BUT IT IS A HUGELY PROFITABLE
BUSINESS.
IS THE FUTURE AS PROFITABLE?
>> WE SEE A STRONG FUTURE.
WE ARE IN THE MIDDLE OF
TRANSFORMATION.
WE OPERATE IN THE TRADITIONAL
MEDIA SEGMENT, BROADCAST,
CABLE, THEATRICAL, FILMS, AS
WELL AS THE MOST IMPORTANT
GROWTH MARKETING MEDIA WHICH IS
STREAMING.
WE OPERATE A FREE STREAMING
SEGMENT AND THE PAY SEGMENT
WITH PARAMOUNT PLUS AND OTHER
PRODUCTS.
WE ARE IN A TRANSITION OF
CONSUMER BEHAVIOR FROM LINEAR
TO STREAMING.
I HAPPEN TO BELIEVE LINEAR
BEHAVIOR WILL STICK AROUND FOR
A LONG TIME.
PEOPLE LIKE HER LEAN BACK
EXPERIENCE AND EVEN TODAY HAS
MORE CONSUMPTION THAN THE
STREAMING SPACE BUT NONETHELESS
WE ARE BUILDING A STREAMING
FUTURE.
WHEN WE LOOK AT THAT STREAMING
FUTURE WE SEE THE MARGIN
CHARACTERISTICS APPROACHING TV
MEDIA TODAY.
WE JUST GOT TO GET IT TO THE
SCALE IT NEEDS TO BE.
JACK: YOU BROUGHT OUT A NEW
JACKASS AND A NEW BEAVIS AND
BUTTHEAD FOR CULTURE SNOBS LIKE
MYSELF.
TOP GUN IN THEATERS, THE
BIGGEST HIT EVER, WHAT DO YOU
DO TO FOLLOW THAT UP.
WHAT IS YOUR NEXT TOP GUN?
>> WE ARE THRILLED WITH TOP GUN
MAREK.
IT HAS BEEN AN INCREDIBLE FILM
THAT PERFORMED ABOVE
EXPECTATIONS.
IT APPEALS TO CONSUMERS YOUNG
AND OLD.
IN THE CENTER OF THE COUNTRY
AND ALL OVER THE WORLD IT IS
ANOTHER FILM.
PEOPLE ARE GOING TO WATCH IT
MULTIPLE TIMES AND IT HAS BEEN
GREAT IN THEATERS AND ONCE IT
GETS TO PARAMOUNT PLUS IT WILL
BE GREAT THERE AS WELL.
IN TERMS OF FOLLOW-UP WE HAVE
AN INCREDIBLE SLATE AT
PARAMOUNT.
IF YOU LIKE TOM CRUISE FILLS WE
HAVE MISSION IMPOSSIBLE 7 AND
MISSION IMPOSSIBLE 8, WE ARE
EXCITED ABOUT THAT.
IF YOU LOOK AT YOUNGER KIDS WE
HAVE ANOTHER MOVIE,
TRANSFORMERS MOVIE COMING NEXT
YEAR.
WE HAVE A TAKE ON THE DUNGEONS
AND DRAGONS FRANCHISE,
INCREDIBLE PRODUCT COMING.
JACK: THERE HAS BEEN INCREDIBLE
INFLATION, STILL A GOOD DEAL,
THE RIGHTS THAT YOU HOLD FOR
GOOD RETURN ON INVESTMENT?
>> WE ARE IN THE SPORTS
BUSINESS, ONE OF THE PREEMINENT
BRANDS WITH MARQUEE PROPERTIES
LIKE THE NFL AND THE NCAA AND
PGA, UP IMPORTANT COMPONENT OF
OUR BUSINESS, TRADITIONAL
TELEVISION AND STREAMING AS
WELL.
WE LIKE THAT POSITION.
THERE HAS BEEN INFLATION IN
SPORTS RIGHTS FOR SURE BUT THE
BUSINESS MAKES SENSE FOR US.
ON A STAND ALONE BASIS AND IN
COMBINATION, WHAT YOU HAVE IS
WHAT WE CALL COHORTS.
PEOPLE WATCH THE NFL BUT ALSO
SURVIVOR OR SOMETHING LIKE
THAT.
THAT COMBINED USAGE IS
IMPORTANT.
JACK: DO I HAVE TO PLAY
DUNGEONS AND DRAGONS TO