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Paramount (PARA) to Celebrate the 50th Anniversary of Hip Hop

Zacks Equity Research
·3-min read

Paramount Global PARA recently announced that it plans to celebrate the 50th anniversary of hip hop music and culture through various programs across multiple platforms. Its subsidiaries, including Showtime, BET, CBS andParamount Plus will offer original content to commemorate the milestone.

Showtime will develop a documentary feature around late hip hop legend Biz Markie after already airing several documentaries like Supreme Team, Cypress Hill: Insane in the Brain, You’re Watching Video Music Box and Ricky Powell: The Individualist, as part of the anniversary slate.

BET is set to produce a documentary on its iconic series Rap City, along with its signature shows, BET Awards and BET Hip Hop Awards.

CBS will honour the milestone during the 65th Annual Grammy Awards and will culminate the celebration later in 2023 with a special music event in partnership with the Recording Academy.

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On the streaming front, Paramount Plus will offer 50 of the most iconic episodes of MTV Entertainment’s original series Yo! MTV Raps for the first time since it premiered and episodes from the home-makeover series, Hip Hop My House.

MTV Entertainment Studios will develop a slate of hip hop documentaries, as well as new episodes of the classic music series, Behind the Music.

Paramount Strengthens Its Content Line-up

Paramount has been focusing and heavily investing on improving its content library across all divisions to stand out in the market.

CBS has been this year’s number one broadcaster. The season 2 premiere of Ghost and shows like Fire Country, the season's number one new show have gained massive traction. To add to this, Paramount has now announced 10 big football games to be aired on CBS and on Paramount+ that will kick off next season.

Paramount launched Sky Showtime, a joint venture with Comcast in Denmark, Finland, Norway and Sweden. This enables them to reach out to smaller markets and cater to their entertainment needs.

Paramount Global Price and Consensus

Paramount Global Price and Consensus
Paramount Global Price and Consensus

Paramount Global price-consensus-chart | Paramount Global Quote

Paramount Picture’s big theatrical hit Smile, which generatedover $200 million globally and Top Gun: Maverick, which is the fifth largest domestic release, is set to release on Paramount+.

The company also announced the revival of the popular FBI drama Criminal Minds, exclusively on Paramount+. Paramount expects this to tap into the franchise's large existing fan base, which will pay even bigger returns to Paramount+ after its subscribers grew to 46 million after the addition of 4.6 million subscribers in the third quarter of 2022.

What Lies Ahead for Paramount ?

Despite the solid library of movies and shows, Paramount faces certain headwinds. Advertisers continue to deal with supply-chain disruptions and labor shortages, and many others are contending with rising costs amid record inflation. This has led to cutbacks in spending on advertising and has hindered the top-line growth.

This Zacks Rank #5 (Strong Sell) company has lost 46.2% of its shares year to date compared with the Zacks Consumer Discretionary space, which fell 39.1% in the same period.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Paramount also faces stiff competition from companies like Netflix NFLX, Disney DIS and Roku ROKU, which have already created a brand name in the market.

Both Disney and Netflix are set to launch their ad-tier subscriptions for customers by the end of this year. This low-cost subscription is expected to gain traction with consumers.

The Roku channel added 29 new movies in October, including The Sandlot, John Wick and The Hulk. Another 27 movies are joining the library in November, some of which are War of the Worlds, Lethal Weapon, Office Space and Wall Street. This huge library is expected to aid the company’s growth.


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