By Dawn Chmielewski
(Reuters) – Skydance Media Chief Executive David Ellison on Monday outlined a vision for Paramount Global as a hybrid technology and media company at a time when Hollywood is competing for attention with tech giants that are entering the entertainment business.
In an hour-long presentation to the financial community following the announcement of a merger deal with Paramount, Ellison invoked Steve Jobs, describing the late Apple co-founder and Pixar Animation Studios leader as a mentor who informed Ellison’s vision for the relationship between art and art. technology.
“Art challenges technology and technology challenges art,” said Ellison, recalling a favorite Jobs quote. “We believe that understanding the symbiotic relationship between art and technology is essential to be able to face this moment.”
A “key thesis” behind the merger of Skydance, a media company launched in 2010 to capitalize on the rise of streaming media, with century-old Paramount, whose roots stretch back to the silent film era, is to position the company to better serve to the demands of a changing market. Ellison discussed changes to the Paramount+ streaming service and suggested the use of artificial intelligence.
“There are a lot of technology companies that are rapidly expanding into media,” Ellison said. “We believe it is essential for Paramount to be able to expand its technological capabilities, to be a media and technology company.”
Ellison told investors he would work to improve the algorithmic recommendation engines that Paramount+ uses, hoping subscribers will spend more time on the streaming service and cancel less.
He also proposed updating advertising technology to provide marketers with more information about the audiences they reach.
A slideshow accompanying the investor call described how artificial intelligence would “turbocharge content creation” and help drive “efficiencies” and streamline operations.
“One of the things that people are underestimating” about Ellison “is his sense of technology, compared to some of the other guys… maybe with the help of his father or just his education,” said Endeavor CEO Ari Emanuel , in an interview with Reuters in April. Ellison’s father is Oracle co-founder Larry Ellison.
Ellison’s technological pedigree factored into Paramount controlling shareholder Shari Redstone’s decision to strike a deal with Paramount’s longtime production partner Skydance, according to a source familiar with the discussions.
“Skydance is well aware of what we have accomplished over the years and it is for this reason that they sought a combination with Paramount,” Redstone wrote in a note, seen by Reuters, to Paramount employees on Sunday night following the announcement of the deal. Fusion.
“They have a clear strategic vision for the future and the resources to leverage Paramount Global’s competitive advantages to drive the company’s success.”
Ellison described how Skydance worked with Oracle to create a cloud-based animation studio. Skydance used this “cloud studio” to produce part of “Spellbound,” an animated film set to be released this fall on Netflix. He said the approach increased efficiency and reduced costs.
“We intend to expand this business across all of our production and animation workflows,” said Ellison.
Technology is also at the heart of storytelling from Skydance’s two interactive gaming teams, a virtual reality development studio behind “The Walking Dead: Saints and Sinners” and an interactive group partnering with Walt Disney and Marvel to produce the next title, “Marvel 1943: Rise of Hydra.”
Ellison is using AI in a way he described as “really pushing the boundaries of what’s possible in the game,” said a person close to Ellison, adding that the executive “strongly believes” in AI’s potential to transform the business. from media.
(Reporting by Dawn Chmielewski in Los Angeles; Editing by David Gregorio)
