Ellison: AI to Boost Hollywood, Not Threaten It
As the dust settles on the monumental $8 billion merger between Paramount Global and Skydance Media, newly appointed Chairman and CEO David Ellison is setting a clear course for the combined entity, now known as Paramount, a Skydance Corporation. Far from viewing artificial intelligence as a threat, Ellison champions it as a vital “multiplier” for Hollywood’s future, an approach he believes will revolutionize content creation, distribution, and discovery.
Ellison’s vision, laid out on what he termed “Day One” of the new Paramount, positions technology not as a replacement for human creativity but as a powerful enhancer. This philosophy underpins a comprehensive strategy to integrate AI across the company’s newly organized three core divisions: Studios, Direct-to-Consumer, and TV Media. Skydance’s existing expertise in AI and cloud-based production tools is slated to scale across Paramount’s studios, promising to reduce production costs by up to 30% and significantly accelerate time-to-market for new content. Specific applications include leveraging virtual production stages to expand filmmakers’ imaginations and employing AI-assisted localization to bring shows to new language markets overnight.
A key focus for the new Paramount is the evolution of its streaming services, Paramount+ and Pluto TV. Ellison has announced plans to unify their tech stacks starting next year, aiming to improve performance, reduce operational costs, and enhance the overall consumer experience. This integration is expected to bolster content discovery through improved recommendation engines and position Pluto TV strategically as a “top of the funnel” to attract new subscribers to Paramount+. Beyond streaming, the company also intends to utilize a proprietary ad-tech stack to maximize yield across both streaming and traditional linear platforms. Ellison also foresees AI playing a role in the burgeoning gaming sector, with titles like The Walking Dead: Saints and Sinners potentially being reimagined with AI interactivity, tapping into a market projected to reach $200 billion by 2030.
The merger itself represents a significant financial restructuring, with Skydance’s substantial cash infusion and capital injection reducing Paramount’s debt by 40%. The new leadership aims to achieve $2 billion in annual cost savings by 2026 through operational efficiencies, workforce optimization, and the divestiture of underperforming assets. While acknowledging that the path to profitability for Paramount+ remains challenging, having incurred a $497 million loss in 2024, Ellison expressed confidence in a strategic, balanced financial approach focused on maximizing long-term shareholder value.
Despite the ambitious technological roadmap, the new Paramount faces inherent challenges, including the ongoing profitability struggles of its flagship streaming service and the complexities of integrating such a vast entertainment empire. The recent merger process itself was protracted and politically charged, including a notable settlement with former President Donald Trump over a CBS News broadcast. Nevertheless, under David Ellison’s leadership, the combined Paramount, a Skydance Corporation, is poised to blend Hollywood’s creative legacy with Silicon Valley’s innovative spirit, betting that technology will not only streamline operations but also unlock new avenues for storytelling and audience engagement.