Paramount Skydance (PSKY) is planning to revive the legacy of its MTV music channel and regain its position as a “music tastemaker” in America’s pop culture. CEO David Ellison is launching an ambitious plan to revive legacy cable networks following its recent merger and has challenged MTV executives to reinvent the channel.
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The broader strategy includes leveraging MTV’s extensive archives, staging live events, and expanding its digital footprint to attract and engage younger audiences. While competitors like Comcast (CMCSA) and Warner Bros Discovery (WBD) are spinning off traditional cable assets, Paramount Skydance plans to retain and revitalize networks like MTV, Comedy Central, and Nickelodeon by making better shows and adding more streaming options, without increasing spending.
PSKY Strategizes More Content Without Spending
According to the data analytics company Nielsen, MTV’s median viewer is currently 56 years old, reflecting a shift in its audience away from younger demographics. Paramount aims to reconnect with young people by creating fresh, exciting shows and increasing MTV’s presence online. The company’s goal is to make MTV a place where fans can connect more deeply with music and artists, going beyond typical streaming services.
Ellison said he has received calls from people with ideas for the cable network, including music executive Irving Azoff, Universal Music Group (UMG) CEO Lucian Grainge, and several artists interested in partnering with MTV.
His vision to revive traditional networks comes amid the company’s efforts to cut more than $2 billion in costs and invest in premium content. The media giant has recently signed a $7.7 billion deal for exclusive streaming rights to the UFC (Ultimate Fighting Championship) over the next seven years. Moreover, it secured a new $1.5 billion deal with “South Park” creators Trey Parker and Matt Stone for all existing episodes plus 50 new episodes over five seasons on Paramount+.
Is PSKY Stock a Buy, Hold, or Sell?
Analysts remain cautious about Paramount Skydance’s long-term outlook due to its already high valuation. On TipRanks, PSKY stock has a Hold consensus rating based on two Buys, 10 Holds, and six Sell ratings. The average Paramount Skydance price target of $12.27 implies 18.2% downside potential from current levels. Year-to-date, PSKY stock has gained 44.7%.
