“Reshape..the Notion of Premium” Paramount Stock (NASDAQ:PARA) Notches up With Upfront Breakup

While we have heard before that entertainment giant Paramount (PARA) is making some changes in terms of its upfront promotions, the latest news suggests that this is not a temporary change. Rather, the change is about as permanent as it gets, and Paramount is sticking with the new concept. Investors are all right with anything that means more ad revenue, and sent shares up fractionally in the closing minutes of Thursday’s trading.

The upfront, for those not familiar, is something of a traditional event, in which a media platform shows off all its big upcoming shows or movies or the like, and tries to get interest built up in advance from companies looking to buy advertising space on those properties. Traditionally, this is done with a big, almost convention-style event. But Paramount has shaken things up, instead going with a series of smaller dinner events, and the reports suggest this battle plan is working out quite well for Paramount.

John Halley, chief of advertising with Paramount, noted that this approach is “…not just a big PR event and a bunch of linear, bombastic presentation.” In fact, the move to break up the upfront into smaller events has allowed more face time with clients. Halley noted that “…we will have spent something like 40 hours with our most important clients in weeks where there’s very little competitive messaging.” How well it works remains to be seen. But early reports suggest Paramount might be out in front of the upfront race after all.

Breaking History

As far back as 2023, reports noted, Paramount—who used to be known for some of the biggest and fanciest upfronts focused around New York landmarks like Carnegie Hall and the Plaza Hotel—has been pulling back to the small format. And, Halley noted, the results are starting to speak for themselves.

“Every year, we get the same feedback,” Halley noted, “which that the format is much better.” Thus, Halley noted, the idea of “…re-entering the fray…” just does not work for Paramount. And, as some rival ad sales executives are starting to discover, Paramount’s new format for upfronts is catching on. One, who remained uncredited, noted in a Deadline interview “ They’re now the only ones without a full presence…it really stands out.”

Is Paramount Stock a Good Buy Right Now?

Turning to Wall Street, analysts have a Moderate Sell consensus rating on PARA stock based on two Buys, seven Holds and six Sells assigned in the past three months, as indicated by the graphic below. After a 9.03% loss in its share price over the past year, the average PARA price target of $11.92 per share implies 2.58% upside potential.

See more PARA analyst ratings

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