"Paramount Pictures Extends Output Deal with MGM+"

 

Title: "Paramount Pictures Extends Output Deal with MGM+ Through 2025 in Surprise Move"

Article: In an exclusive development, Paramount Pictures has quietly prolonged its output agreement with MGM+ until 2025, insiders reveal to Deadline. The previous deal, sealed in 2021, was set to conclude in December 2023. The decision to extend wasn't a foregone conclusion due to significant transformations at the network, formerly known as Epix, over the past two years. The network underwent a change in ownership and rebranded to MGM+ after Amazon's acquisition of MGM in 2022.

According to an insider, the extension of the Pay 1 deal occurred last year, aligning with the renegotiated terms of the 2021 agreement. This agreement permits the majority of Paramount Pictures' theatrical releases to debut initially on Paramount+ before transitioning to MGM+. The upcoming blockbuster, "Mission: Impossible – Dead Reckoning," slated for a January 25 premiere on Paramount+ in the U.S. and Canada, followed by an international rollout in February, exemplifies this strategy.

Title: "Paramount+ Becomes Exclusive Streaming Home for New Paramount Pictures Releases from 2024 Onward"

Article: In a significant move announced by Paramount Global in 2022, starting with the 2024 film releases, Paramount+ will serve as the exclusive streaming platform for all new Paramount Pictures movies in the U.S. post their theatrical releases.

This agreement encompasses high-profile releases like the anticipated box office hit "Mean Girls," marking the studio's inaugural major film of 2024. Paramount, under its arrangement with MGM+, has been securing Pay 1 windows for films premiering first on Paramount+.

In the ever-evolving landscape of the streaming era, strategies surrounding the Pay 1 window have become more intricate. Traditionally, these deals were the financial backbone of the film release model, providing stability in the volatile movie business. Recent shifts in consumer behavior and challenges to traditional moviegoing due to the pandemic have prompted major media companies to reconsider established structures. NBCUniversal's Peacock, for instance, has made Universal's slate available in the Pay 1 window, citing it as a key driver for new subscriptions.

The 2021 Epix agreement modified Paramount Pictures' original five-year output deal, initially signed during the co-venture launch with Paramount, Lionsgate, and MGM in 2017. Following full ownership by MGM, Epix rebranded to MGM+. Under the 2021 deal, Paramount Pictures has also been compensating MGM+ to sub-license older titles and non-Paramount movies originally licensed by the network. This includes titles from MGM and Sony Pictures, redirecting the films from Paramount Pictures to Paramount+. Previous "white label" deals with Amazon and Hulu have expired, further consolidating Paramount Pictures' content on Paramount+.