Paramount Pictures Extends Output Deal with MGM+ Through 2025

In a strategic move poised to reshape the streaming landscape, Paramount Pictures has secured an extension of its output deal with MGM+ until 2025. This extended partnership marks a continuation of the collaborative efforts between the two companies, solidifying their commitment to delivering a diverse array of captivating content to audiences worldwide.

Key Points of the Extended Deal

The extended deal between Paramount Pictures and MGM+ is characterized by several notable aspects that will shape the future of their content distribution strategies:

• Continued Theatrical Releases on Paramount+: Paramount Pictures’ theatrical releases will continue to make their exclusive streaming debut on Paramount+ before transitioning to MGM+. This arrangement reinforces Paramount’s strategy of establishing Paramount+ as the ultimate destination for its new movies in the United States.
• Paramount Pictures Retains Pay 1 Window Ownership: Paramount Pictures will maintain ownership of the Pay 1 window for films that are initially released on Paramount+. This strategic decision enables the studio to maximize revenue and retain control over its valuable content.
• Sub-licensing of Older Titles and Non-Paramount Movies: The deal grants Paramount Pictures the right to sub-license older titles and non-Paramount movies licensed by MGM+. This provision ensures that MGM+ maintains a diverse library of content to cater to the preferences of its subscribers.

Evolving Strategies in the Pay 1 Window Era

The extension of the Paramount Pictures and MGM+ deal reflects the evolving strategies surrounding the Pay 1 window in the streaming era. Traditionally, Pay 1 deals between studios and premium cable networks served as financial cornerstones for the film release model. However, the advent of streaming services and shifts in consumer behavior have prompted major media companies to reassess these traditional structures.

Peacock, NBCUniversal’s streaming service, has made Universal’s slate available in the Pay 1 window. This move has yielded positive results, with executives reporting that recent theatrical releases have played a significant role in driving new subscriptions.

Historical Context of the Partnership

The relationship between Paramount Pictures and MGM+ has undergone several transformations over the years, reflecting the ever-changing landscape of the entertainment industry:

• Initial Five-Year Output Deal (2017): The initial five-year output deal between Paramount Pictures and MGM+ was signed in 2017, coinciding with the launch of Epix as a co-venture between Paramount, Lionsgate, and MGM.
• MGM Acquires Full Ownership of Epix (2019): Subsequently, MGM acquired full ownership of Epix, buying out its partners. This move marked a significant shift in the ownership structure of the network.
• Modified Output Deal (2021): In 2021, Paramount Pictures and Epix reached an agreement to modify the original output deal, introducing new terms and conditions. This paved the way for Paramount Pictures to sub-license older titles and non-Paramount movies licensed by the network.

Impact on Paramount+ and MGM+ Subscribers

The extended deal between Paramount Pictures and MGM+ holds significant implications for subscribers of both streaming services:

• Paramount+ Subscribers: Paramount+ users can anticipate continued access to a steady stream of new Paramount Pictures releases, including highly anticipated titles like “Mean Girls” in 2024. This ensures that Paramount+ remains a must-have destination for movie enthusiasts.
• MGM+ Subscribers: MGM+ subscribers will benefit from an expanded library of older titles and non-Paramount movies, thanks to the sub-licensing arrangement. This diverse selection of content will cater to a wide range of viewer preferences, enhancing the overall value of the MGM+ subscription.

Conclusion

The extension of the output deal between Paramount Pictures and MGM+ through 2025 underscores the evolving nature of the entertainment landscape. As streaming services continue to reshape the film release model, studios and networks are adapting their strategies to meet the demands of a rapidly changing market. This extended partnership promises to deliver a diverse range of content to audiences, solidifying the positions of Paramount+ and MGM+ in the competitive streaming landscape.