David Ellison has a message for Paramount staffers: tech is a key to winning

• Paramount Skydance just reported its first full quarter under CEO David Ellison.
• In a note to staffers, Ellison highlighted Paramount’s tech investments.
• Read Ellison’s full staff memo about the company’s latest quarter.

Paramount Skydance CEO David Ellison gave employees a shoutout after the media company roughly met Wall Street’s estimates in the fourth quarter.

“The progress we’ve made over the past 6+ months — from advancing our strategy to strengthening our portfolio and reorganizing our businesses to operate more efficiently and effectively — is a direct reflection of your hard work and commitment,” Ellison wrote in an email to staffers, which was viewed by Business Insider.

Ellison, who wants to turn his 114-year-old Hollywood studio into a tech-forward company, said in his memo that Paramount is focused on supercharging its tech and data capabilities.

“We recognize that in today’s highly competitive marketplace, sustainable growth depends not only on what people watch, but on the quality of the overall user experience,” Ellison wrote. “That’s why we are prioritizing investments in advanced technology and data capabilities to strengthen and differentiate our DTC offering. We are making meaningful investments across the company in innovation and technology, and we look forward to sharing more details in the coming months.”

That message comes weeks after Ellison made data a bigger part of Paramount by expanding the role of the company’s streaming data and insights team.

Paramount is planning to add short-form video to Paramount+ and is exploring ways to bring interactive features and user-generated content to its streamers, Business Insider previously reported.

In the memo, Ellison also emphasized storytelling, saying that he wants Paramount to be “the home for the industry’s leading creative talent.” While Ellison lured former Netflix original content executive Cindy Holland to run its streaming business, Paramount is losing star TV creator Taylor Sheridan to rival NBCUniversal when his contract expires.

Paramount’s biggest initiative is its quest to buy Warner Bros. Discovery, which seems increasingly open to Ellison’s advances, even though it has a signed deal with Netflix.

Paramount’s results were roughly in line with analyst expectations in its latest quarter, the first full quarter since Ellison took the helm in early August. As expected, Paramount’s full-year revenue shrank for a second straight year to $28.89 billion, just under the estimate of $28.95 billion.

Paramount+ now has 78.9 million paid subscribers, up from 77.9 million last quarter and 4% higher than a year ago. Paramount’s product chief told employees that its flagship streamer added about 1 million customers on the first day it carried UFC rights in the US, Business Insider previously reported.

Read Ellison’s memo to Paramount employees here:

Team,

Today we held our 4th quarter and fiscal year-end earnings call, where we reviewed our performance and reinforced our commitment to executing against our strategy and roadmap. Anchored by our North Star priorities, we continue to drive measurable progress across all areas of the business and remain confident that we are on the right path to deliver sustained, long-term value for our shareholders.

First and foremost, I want to take this opportunity to thank all of you. The progress we’ve made over the past 6+ months — from advancing our strategy to strengthening our portfolio and reorganizing our businesses to operate more efficiently and effectively — is a direct reflection of your hard work and commitment.

This shared commitment powers our primary focus here at Paramount: delivering exceptional storytelling. We want to be the home for the industry’s leading creative talent, ensuring they have the resources, platform and reach to bring their best stories to the broadest possible audience across film, television and streaming. Every decision we make — from capital allocation to operational priorities — is in service of this objective. And our increased investment in content creation reflects this commitment, with 11 films and 11 series greenlit since August and more to come.

We recognize that in today’s highly competitive marketplace, sustainable growth depends not only on what people watch, but on the quality of the overall user experience. That’s why we are prioritizing investments in advanced technology and data capabilities to strengthen and differentiate our DTC offering. We are making meaningful investments across the company in innovation and technology, and we look forward to sharing more details in the coming months.

One of our greatest strengths as a company is our ability to mobilize the entire ecosystem behind key priorities and events through our “Paramount One” initiative. We saw this clearly demonstrated with the launch of the UFC on Paramount+ in January. Every part of the organization — from CBS Sports to Pluto, marketing to ad sales — contributed to the promotion of this landmark partnership. This all-hands on deck mentality is a true force multiplier for the Company — and I know you’ve put the same firepower behind Survivor 50, premiering tonight on CBS!

I encourage you to review our shareholder letter for more details on our quarter and full fiscal year 2025 performance. A replay of the earnings call will be available shortly on our Investor Relations site.

I couldn’t be prouder of this team. Keep up the great work.

Let’s go!

Best,

David