Comcast and Paramount are exploring strategic options for their European streaming joint venture SkyShowtime, including a possible winding down of the service.
“SkyShowtime operates in one of the most competitive markets in our industry. Despite the excellent work of the team and the strength of what you and the team have built, the landscape continues to evolve rapidly, and remains highly challenging,” the SkyShowtime board wrote in a letter to CEO Monty Sarhan that was shared with staff on Monday. “Against that backdrop, SkyShowtime’s shareholders are commencing a review of strategic options for the business, which includes the possibility of a wind down. No decisions have been made, and all options remain under consideration.”
The letter emphasized that the update is “the beginning of a dialogue, not the end of one” and that the service would continue to operate as normal for customers and partners.
“At this time, we ask that the team remain focused on bringing our audiences the quality of service and programming you have all expertly delivered over the years, and maintaining momentum of the operating business into 2027,” the letter continued. “Where any proposal could affect employees, we will follow the information and consultation processes required in each of our markets. Final decisions will be made after those conversations have taken place.”
Representatives for SkyShowtime and Paramount declined to comment. A spokesperson for Comcast did not immediately return TheWrap’s request for comment.
News of the strategic review, which was first reported by The Hollywood Reporter, comes nearly four years after the service began rolling out across 22 markets in Europe.
SkyShowtime is available in Albania, Andorra, Bosnia & Herzegovina, Bulgaria, Croatia, Czechia, Denmark, Finland, Hungary, Kosovo, Montenegro, North Macedonia, Norway, Netherlands, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain and Sweden. Since launch, it has grown to nearly 10 million subscribers, an insider familiar with the matter told TheWrap.
Per its latest available regulatory filing, SkyShowtime posted an operating loss of €543.7 million and revenue of €275.1 million in 2024, compared to a €561.95 million and €207.8 million in the prior year period. For the period covering November 2021 to December 2022, it also generated revenue of €133.25 million and a loss of €190.09 million.
“I know this news creates uncertainty and, as we work through what comes next, my priority and that of the leadership team, is to be there and support all of you.
Together, we have created a community and culture with empathy, opportunity, and innovation at its heart. Whatever comes next, we will all continue to be there for one another,” Sarhan said in a separate note to staff. “As a team of builders and believers, you bring passion, energy, and enthusiasm to everything you do – and I know that even through this difficult time, you will continue to do that. We will continue to keep you updated and share more in the coming weeks.”
The strategic review of SkyShowtime also comes as Paramount is in the midst of a legal battle with 12 state attorneys general and the Writers’ Guild of America who are looking to block the closing of its $110 billion merger with Warner Bros. Discovery.
The deal has already received clearance from regulators and government bodies representing 68 jurisdictions, including the European Commission. However, Paramount has agreed to delay the closing until five days after the outcome of a trial, or June 1, 2027, whichever is earliest. The final deadline to close the merger is June 4, 2027, per the terms of the agreement.
In order to clear the deal in Europe, Paramount agreed to terminate its stake in United International Pictures, a separate international film distribution joint venture with the Comcast-owned Universal Pictures, within 13 months. For a period of 10 years, it will also not directly or indirectly enter into any agreement or understanding with Universal to jointly co-distribute films the European Economic Area (EEA).
During that period, it also won’t shift the distribution of Warner’s films from Warner’s existing distributor to the theatrical distributor used by Paramount, where that distributor also distributes Universal’s or Disney’s films in all UIP countries in the EEA. Additionally, in the UIP countries where Paramount and Universal don’t share the same distributor, it won’t shift the distribution of Paramount’s films from Paramount’s existing distributor to the theatrical distributor used by Warner, where that distributor also distributes Universal’s or Disney’s films.
Countries that fall under the EEA include Bulgaria, Croatia, Czechia, Cyprus, Denmark, Estonia, Finland, Greece, Hungary, Iceland, Latvia, Lithuania, Norway, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden
