By TeeJay Small
| Published
With all the money Paramount Skydance has been shelling out lately, you’d expect them to have a crop of massive investments right around the bend that will replenish the savings of their top executives and shareholders. Unfortunately, it looks like the billionaires running the show at the major movie studio aren’t up on their accounting, as CEO David Ellison tells Variety he expects “significantly lower theatrical revenue” for the remainder of 2026. Even though Paramount has dozens of blockbuster films slated for theatrical release, the corporation’s accountants are expecting to see a sharp loss, due to an overall decline in ticket sales.
So Much Merging, So Little Actual Cash
While it’s true that the entire movie theater industry is struggling to remain afloat in the streaming age, it’s shocking that Paramount would be in this position. For starters, the conglomerate owns multiple streaming services, meaning they can effectively control the competition for theatrical releases. They already have Paramount+ for original shows such as Tulsa King, Dutton Ranch, and Strange New Worlds, as well as Pluto TV, where they can soak up ad revenue on older classic films. Paramount even owns BET+, which must be pulling in tens of dollars per month worldwide, at least.
Now, as Paramount prepares to execute their merger with Warner Bros. Discovery, they’ll be taking over the entire DCU, HBO, the Harry Potter franchise, the Food Network, HGTV, the Discovery Channel, and more. Does David Ellison seriously not have the business capability to make money off any of these ventures? If not, then why is he buying them for a price tag that’s the length of an international phone number?
Phase One: Acquire, Phase 2: ???, Phase 3: Profit
Specifically, Ellison told Variety that Paramount and Warner Bros. “are actually making 30 films to date,” and that that figure is “accelerating” as the merger solidifies. Despite this impressive output, Ellison has assured shareholders that they can anticipate “significantly lower theatrical revenue year-over-year … as we build into our 2027+ slates.” Paramount and Warner will tout over 200 million combined streaming subscribers, along with a suite of some of the most recognizable IPs in human history, and they’re scrambling to figure out how to turn a profit.
Perhaps these comments represent an overall decline in the entertainment industry at large. Of course, it seems more likely that the wrong people have been put in charge. A brief doomscroll on any social media outlet will alert you to thousands of fans with great ideas, and untold sums of aspiring writers, actors, and filmmakers. These people can’t get jobs in Hollywood because out-of-touch billionaires are busy putting their dumb sons in everything, and locking anyone without direct connections out of the industry. If a few multi-billion dollar corporations need to hemorrhage money in order for bigwig execs to understand that, it may be a necessary evil.
