The question of what will happen to Paramount Global’s quite considerable international footprint has been a live one throughout the media giant’s protracted Skydance merger journey.
Now that the $8.4B deal has finally been waved through, those questions are becoming more pronounced as fears mount over the future of small but mighty assets such as the UK’s 5 (formerly Channel 5), Australia’s Network 10 and Latin America’s Telefe.
While Paramount and Top Gun studio Skydance are remaining tight-lipped until the merger is done and dusted, one ex-5 employee in the UK described the mood amongst the network’s staffers as “anxious” as they await more news about their future. “There’s so much nervousness because there’s so much change,” added the ex-employee.
The fear, we are told, is that 5 could now be ripe for sale or have its hefty £200M ($265M) originals budget parred back majorly. “I think they are right to be anxious,” said a former Paramount UK executive. “I can see a world where 5 is sold off or returns to its pre-[content boss] Ben Frow world of U.S. imports plus repeats of Paramount+ content.”
That world is one that 5 thought it had left behind. Under the highly-rated Frow and Paramount UK chief Sarah Rose, the network has become a mini powerhouse, boosting linear ratings in the face of rivals’ declines, winning awards and creating the seemingly impossible by making modestly-budgeted drama that brings in millions of viewers. The All Creatures Great and Small reboot, which is co-produced with PBS, has been a revelation. Other big hitters include David Suchet-starrer The Au Pair and thriller The Feud.
Channel 5’s diverse output and £200M annual originals budget runs completely counter to a bygone era of American imports and trashy TV, when the network was owned by porn baron Richard Desmond. In recent years, however, the channel has integrated more and more closely with commissioning for Paramount+ UK. If its future American ownership therefore wants to retrench to Hollywood fare, sources raised concerns that 5 could become something of a shop window for Paramount+, in effect a return to those American import days.
In direct opposition to this notion and as rival Channel 4 experiences issue after issue, 5 has seen its popularity rise with small independent UK producers, many based outside of London. This has aided its popularity with the UK’s Culture, Media & Sport department. Culture sec Lisa Nandy has previously urged broadcasters to better represent all of the UK in its entirety.
Keeping in the good books of the government could also be hampered by any future alteration to 5’s diversity policy. These directives are in the spotlight after Paramount and Skydance committed to foregoing DEI programs several months back under a notoriously anti-diversity initiatives Donald Trump administration, and the decision was reiterated last week to the Federal Communications Commission. In February, Skydance’s General Counsel said the company will “eliminate or modify DEI programs across the company to ensure that they are consistent with the company’s commitment to equal opportunity and governing law.” That included eliminating what McKinnon called “aspirational goals” related to hiring of female employees and people of color, which came as a wealth of big American media organizations also tore up diversity commitments.
This development under Trump doesn’t reflect the state of things in the UK, where giving under-represented people a voice has been the TV sector’s top priority over the past few years, and is reflected in much of 5’s recent output. After the Black Lives Matter protests of summer 2020 and under the then-named ViacomCBS Networks UK, 5 introduced a ‘no diversity, no commission’ policy to help promote diversity both on-screen and behind the scenes.
That policy has remained in place for the past five years. Paramount, Skydance and 5 declined comment on whether it will continue to be built into 5’s commissioning after the merger, but The Telegraph reported in March that 5 was splitting with its American owners and defying Trump on diversity. One 5 insider pointed Deadline to the fact that the ‘no diversity, no commission” directive remains live on 5’s website.
Sale talk
Still, sale chatter abounds. Public service broadcasting champion Rose has previously stressed Paramount’s commitment to 5 as part of the American giant’s “ecosystem.” She has steered the ship with aplomb over the past few years and is viewed as a fierce public service protector, yet is deemed a frontrunner to become the next CEO of Channel 4, with multiple sources highlighting her credibility as a candidate. With Frow long touted as a future Channel 4 content boss and incumbent Ian Katz’s future uncertain, there is a chance that both Rose and Frow could have jumped ship from 5’s Camden premises to C4’s Horseferry Road HQ by this time next year.
If, further into the future, a sale is what Paramount-Skydance opts for, this would of course mean a dramatic shift for 5, whether Rose is in post or not. The UK government has made clear its desire to make pubcaster consolidation easier, but two connected sources downplayed the idea that Channel 5, which turned a £112.4M ($150M) operating profit last year while making an overall loss of £159.5M due to a one-off payment to a Paramount Global subsidiary, will quickly be shipped off, mainly due to the difficulty of finding a buyer in today’s M&A world.
“They do their advertising through Sky, don’t own IP and [BVoD player] My5 isn’t valuable, so what you’re buying is effectively a brand and an Ofcom license,” added the ex-5 staffer. “I don’t think there will be many offers on the table. The cable brands are most at risk [of sale] by miles. They could put them up for sale or place them into an [operating company] like Warner Bros. Discovery has.”
Those cable brands and Paramount’s shrinking international production assets are also up for discussion. There is also the matter of the future of Paramount-owned Network 10 in Australia and Argentina/Chile’s Telefe, the latter of which was reported by local outlets to be close to a sale last month.
For now, 5 pushes on. Insiders stressed that no decision has been made about its long-term future and pointed to 5’s excellent record over the past few years. In the meantime, we are told Frow’s team is still commissioning far in advance, with staples like the Jane McDonald shows expected to air up until 2027.
“The hand is still on the tiller for now,” said the ex-Paramount UK executive.
The course that tiller charts or who will be steering it in a few months’ time remains the subject of intense speculation. Paramount, Skydance and 5 declined comment for this article.
