Showtime chief’s departure signals Paramount is moving forward on plan to merge streaming services

Paramount Global enforcement David Nevins, who has tally the premium web Showtime since 2016, is leaving the institution astatine the extremity of year.

Along with his departure, Paramount Global is restructuring Showtime successful ways that could springiness the institution flexibility to efficaciously extremity Showtime arsenic it's existed for decades — arsenic an autarkic premium cablegram web churning retired prestige hits specified arsenic "Dexter," "Weeds," "Billions," "Homeland" and "Yellowjackets." 

Paramount Global announced Thursday that it's moving Showtime's web concern nether the enactment of Chris McCarthy, who runs different linear cablegram networks specified arsenic MTV and Comedy Central, and the streaming work nether Tom Ryan, who runs Paramount Streaming.

The moves travel arsenic the institution is considering the thought of merging Showtime into Paramount+ and utilizing the network's deed programming to substance Paramount+ subscriptions, according to radical acquainted with the matter. The company's extremity is to person Paramount+ beryllium 1 of the 5 largest planetary streaming services, on with Warner Bros. Discovery's HBO Max, Amazon's Prime Video, Netflix and Disney+, said the people, who asked not to beryllium named due to the fact that the discussions are private.

No decisions astir Showtime's aboriginal person been made, and nary changes are imminent, the radical said.

"We are ever exploring options to maximize the worth of our contented concern by giving consumers entree to large Paramount contented — including the iconic, groundbreaking and premium contented offerings of Showtime -- crossed an array of services and platforms," a Paramount Global spokesperson said.

"This alteration has besides fixed america the accidental to much intimately align our studios, networks and streaming operations arsenic we execute connected our imaginativeness and strategy for the future," Chief Executive Officer Bob Bakish said successful the statement.

Paramount+ has 43.3 cardinal planetary subscribers and expects to deed 100 cardinal by 2024. The institution hasn't elaborate its fig of Showtime subscribers but last reported astir 64 cardinal subscribers crossed each of its streaming services — Paramount+, Showtime, Noggin, BET+ and immoderate different smaller products. Bakish besides said earlier this year that Showtime mislaid 500,000 subscribers successful the archetypal 4th arsenic millions of radical cancel linear wage TV each year.

Paramount Global announced a bundled promotion successful August, allowing Paramount+ subscribers to ticker Showtime's contented wrong the Paramount+ app for $7.99 per period with advertizing oregon $12.99 per period without commercials. That connection was the archetypal measurement toward perchance making Showtime a tile wrong Paramount+, afloat merging the 2 services, the radical said.

One obstacle to pushing Showtime unneurotic with Paramount+ is existing wage TV distributor agreements. The Wall Street Journal reported past period that Paramount has discussed simply shuttering the standalone Showtime web with astatine slightest 1 pay-TV partner.

Another thought nether information by Paramount Global executives is to determination Paramount+ originals and movies to Showtime, efficaciously making Showtime a reflector to Paramount+'s contented that doesn't look connected different TV networks, 2 of the radical said. That could assuage pay-TV providers, who could set pricing against the merged streaming product.

Showtime's imaginable improvement into Paramount+ reflects a larger inclination successful media and entertainment. HBO, Starz, Showtime and Epix — premium cablegram networks that person agelong existed arsenic add-ons to basal cablegram — don't person the standard to past against the biggest streaming services. As a result, they're looking for ways to adhd contented and broaden their audiences. HBO contented is featured connected HBO Max, which volition merge with Discovery+ adjacent year. Starz is looking to abstracted from Lionsgate truthful it tin perchance merge with different contented providers to summation scale.

Eliminating Showtime arsenic an autarkic entity would besides travel with outgo savings from caput number reductions, specified arsenic Nevins' departure, and exertion and selling duplications.

WATCH: CNBC's afloat interrogation with Paramount Global CEO Bob Bakish