#BlockTheMerger: Could Sony And Apollo's Possible Acquisition Of Paramount Global Be A Good Thing For MTV And Nickelodeon?

Not long ago, it was reported that Sony and Apollo would be making a joint bid to acquire Paramount Global. This comes after Paramount Global had rejected Apollo's initial offer as talks are still underway with Skydance over a possible restructure.

Similar to Canal+, Sony faces legal hurdles as foreigners are given restrictions pertaining to ownership of a local company. Apollo Global Management is basically their BBBEE or another case they're way of securing the entertainment company. 

Sources had outlined that Sony was looking to distance themselves from the streaming wars years after closing and selling their linear operations. Apollo was looking to possibly merge Paramount+ with another streamer putting its future in a dark corner.

Not that the content would be phased out in the process but if you're living abroad and getting a portion of this content on Paramount+. Them closing and merging it with another broadcaster further lessen the lineup.

Same goes with the Paramount trademark in general as it could as well be folded under Sony.

As for their linear operations, don't expect much improvement there content wise as consumption and revenue for these channels continue to decline. If anything, don't be surprised if they choose to close/sell a few if not all channels globally.

Apollo had hinted at that when making the initial bid for Paramount with film studios. When you look at it, Nickelodeon and MTV would probably be more like CW reliant on third party content and archived material from Paramount while first run content are shipped to other platforms. 

This is an endeavor we envision could await local consumers in the United States while other countries go through a similar fate as Disney's FOX and Disney XD channels.

New Series Alert: Never Late For Love Coming This May To Zee One

Zee One, a freemium based TV channel operated by Zee Entertainment Enterprises that distributes various content from India is set to rollout a new series Never Late For Love. Known as Tu Tevha Tashi in the Marathi language is a romcom for the oldies.

The plot revolves around two people in their forties who have experienced many ups and downs in their lives. Anamika Dixit and Saurabh Patwardhan were college classmates reconnect after a long separation and begin a new chapter in their lives.

It starred Swapnil Joshi as Saurabh Vishnupant Patwardhan, Shilpa Tulaskar as Anamika Dixit, Abhidnya Bhave as Pushpavalli Moropant Eadke, Swanand Ketkar as Neel Nana Jalgaonka and Suhas Joshi as Rama Joshi.

Never Late For Love debuted on Zee Marathi from 20 March 2022 to 26 March 2023 with 334 episodes produced each with a 22 minute duration. Through a poll on Etimes TV, 68% respondents praised the show while 32% disliked it.

The series will air daily at 6PM on Zee One from 3 May replacing Devoted Daughter once it comes to an end days prior. This is one of the few series to have launched in Africa with English audio as the latter such as We Mamezala and Onesipho is in Zulu on Zee Zonke.

Recap To The Week: Arise News Channel Goes Live In South Africa, 9 Other Southern African Countries On DStv

ARISE News Channel, Africa’s premier broadcaster, has announced its expansion into South Africa and nine other Southern African countries.

The channel is now available on MultiChoice's DStv Channel 416 in South Africa, Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, and Zimbabwe.

With this expansion, ARISE News Channel is now live in 54 African countries, including Kenya, Tanzania, Rwanda, Uganda, Cameroon, Sudan, Ghana, Senegal, and Cote d’Ivoire, among others.

Celebrating its 11th anniversary on January 31, ARISE News Channel continues to showcase Africa’s diversity in business, politics, technology, commerce, science, sports, show business, and fashion, while projecting the best of Africa and its cultures globally.

Chairman and Editor-in-Chief of ARISE News Channel, Nduka Obaigbena, expressed determination to launch the channel in all countries worldwide, stating, “The move to Southern Africa reaffirms ARISE News Channel’s position as the leading broadcaster in Africa with independence and clear thinking. We are determined to celebrate the best of Africa and tell the African story in the global marketplace.”

He added, “We shall continually showcase the emerging African century where Nigeria and other African countries will be some of the leading economies around the world. This is a marathon and not a dash: we will do for Nigeria and Africa what the CNN, the BBCs, and Aljazeeras have done for their nations and regions. In the emerging African AI- driven new information highway, no one will shape your narrative better than you.”

The Canal+/MultiChoice Effect: Sony Reportedly In Talks To Join Bid With Apollo To Acquire Paramount Global

Even as Paramount Global continues to hold exclusive talks with David Ellison’s Skydance and Gerry Cardinale’s Redbird Capital, another potential buyer group is considering its own moves.

It has been confirmed that executives at Sony Corp., including Sony Pictures chief Tony Vinciquerra, have been in touch with Apollo Global Management about making a joint bid for the entertainment company.

Apollo had previously made a $26 billion offer for Paramount, inclusive of equity and debt, though it was reportedly dismissed. But partnering with Sony would likely eliminate any cash or financing concerns.

The New York Times first reported the Sony talks, adding that no offer has been made, given that the exclusive negotiating window is still in place. The Times reported that one structure under consideration would see Sony and Apollo effectively take Paramount private, with Sony owning a majority of the company, with Apollo operating as a minority owner..

The actual structure of the deal is not clear, though the Paramount film and TV studios would likely fit in nicely with Sony’s own studios. It would raise questions about both Paramount+, given Sony’s decision to avoid entering the streaming wars, as well as Paramount’s linear TV assets, including CBS. There are federal regulations restricting foreign ownership of U.S. broadcast stations, and as a Japanese company Sony could face scrutiny under such rules.

Meanwhile, the talks between Skydance and Paramount continue, with a source saying that the Ellison-led company has articulated a plan to deliver operating efficiencies, and to leverage the executive teams at both Skydance and Redbird (including former NBCUniversal CEO Jeff Shell), to help turn Paramount around. Paramount would remain a public company under the Skydance deal.

Some investors have complained about the decision not to pursue the Apollo deal, given the all-cash offer.

Shares in Paramount rose in after-hours trading, after reports about the talks were published.

Development Alert: Netflix Will Stop Reporting Subscriber Numbers By 2025

Netflix will no longer report subscriber numbers — which has been a key metric for streaming services for years — beginning with the first quarter of 2025.

The company made the announcement in releasing its first-quarter 2024 earnings Thursday. Netflix handily topped expectations for subscribers net adds, gaining 9.33 million in the period, to reach nearly 270 million globally. It also beat Wall Street expectations on the top and bottom lines.

Despite the Q1 earnings beat, Netflix shares dropped more than 3% in after-hours trading Thursday, possibly as investors reacted negatively to the news that the streamer will stop reporting quarterly sub totals.

In its Q1 letter to shareholders, Netflix said that engagement — time spent with the service — is its “best proxy for customer satisfaction.” As such, it will no longer report quarterly membership numbers or average revenue per member (which it dubs “ARM”), as of Q1 2025. Netflix said it will announce “major subscriber milestones as we cross them” but will cease disclosing quarterly subscriber numbers.

Netflix continues to see solid subscriber gains in markets around the world; for example, it netted 2.53 million new customers in the U.S. and Canada in Q1. But eventually those sub numbers will start to plateau, and the company wants to reorient investors toward time-spent-viewing metrics where it has more potential upside in the years ahead.

Co-CEO Greg Peters said on the earnings call that Netflix’s number of subscribers has been a decreasingly relevant measure for the health of the company’s business. He cited, as an example, Netflix’s paid-sharing initiative, which gives primary account holders the option to add an “extra member” for an incremental monthly fee (and those “extra members” are not counted as separate subscribers). Meanwhile, with Netflix’s advertising plan, higher engagement is tied to higher revenue per member, as opposed to the fixed per-sub revenue on the plans with no ads.

“As we’ve noted in previous letters, we’re focused on revenue and operating margin as our primary financial metrics — and engagement (i.e. time spent) as our best proxy for customer satisfaction. In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential,” Netflix said in the letter. “But now we’re generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth.”

The company continued, “In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact. It’s why we stopped providing quarterly paid membership guidance in 2023 and, starting next year with our Q1’25 earnings, we will stop reporting quarterly membership numbers and ARM.”

According to Netflix, it will continue to provide a breakout of revenue by region each quarter and the foreign-exchange impact “to complement our financials.” Going forward, the company will add guidance for annual revenue in addition to what it already provides: annual operating margin and free cash flow forecast and forecasts for quarterly revenue, operating income, net income and earnings per share.

Last December, the company released its first “Netflix Engagement Report,” inclusive of more than 18,000 titles and nearly 100 billion hours viewed between January-June 2023, representing 99% of all viewing during that period. In the report, Netflix divulged streaming performance metrics for licensed content. It plans to release the data twice per year — mainly to highlight the massive engagement across a wide range of content on its service.

“Success in streaming starts with engagement,” Netflix said in the shareholder letter in discussing the decision to stop reporting subscriber numbers. “When people watch more, they stick around longer (retention), recommend Netflix more often (acquisition) and place a higher value on our service. It’s why we’ve been providing progressively more information on engagement, starting with our Top 10 weekly and most popular lists and more recently our biannual report into viewing on Netflix (which covers ~99% of all video watch time on our service). This is more information than any of our competitors provide, and we expect to provide even more over time.”