The recent $8.4 billion merger between Paramount and Skydance is set to reshape the legacy media giant into a markedly different entity within the next two years, according to Doug Herzog, a former top executive at Viacom, now part of Paramount. Speaking on the TV of Tomorrow podcast, Herzog, who once led Viacom’s Music Entertainment Group, predicted that Paramount’s current structure will undergo significant changes as it adapts to the rapidly evolving media landscape. “You Need to Blow It Up” Said Former Comedy Central Chief Doug Herzog.
Herzog, who played a pivotal role in shaping MTV and Comedy Central during his tenure, emphasized the need for legacy media companies to reinvent themselves to remain competitive. The traditional media model, long reliant on dual revenue streams from distribution and advertising, is faltering due to widespread cord-cutting. Paramount, like other traditional players, has been redirecting resources to bolster its streaming services in an effort to catch up with industry leader Netflix. Herzog suggested that the company may need to radically overhaul its approach, describing the current model as fundamentally broken.
The merger with Skydance, finalized earlier this month, positions David Ellison, son of Oracle billionaire Larry Ellison, as Paramount’s new CEO. Herzog highlighted Ellison’s unique blend of technological savvy and content creation expertise, noting that Ellison has been running Skydance, his own studio, for years. This dual perspective could drive Paramount to embrace the tech world more aggressively, a shift Herzog sees as essential for survival in an industry where adaptation is not guaranteed.
Paramount’s leadership has recently dismissed speculation about spinning off its cable portfolio, a strategy pursued by competitors like Comcast and Warner Bros. Discovery. Instead, the company plans to redefine many of its networks and franchises rather than sell them outright. This approach follows Paramount’s decision two years ago, under former CEO Bob Bakish, to put BET Networks on the market, a move that ultimately did not result in a sale.
One of Paramount’s enduring successes is South Park, a franchise Herzog helped launch during his time at Comedy Central. The animated series, now in its nearly three-decade run, recently secured a $1.5 billion renewal deal with creators Trey Parker and Matt Stone. Herzog reflected on the show’s unlikely beginnings, noting that its provocative content made it a risky bet in its early days. The show’s debut was facilitated by the unique dynamics of Comedy Central’s joint venture between Viacom and Time Warner, which allowed for greater creative freedom than a single corporate owner might have permitted.
At the time, Comedy Central was a fledgling network, available in fewer than half of pay-TV households. South Park became its first major hit, establishing the network as a cultural force. Herzog credited the show’s success to the bold vision of Viacom’s Tom Freston and HBO’s Jeff Bewkes, who supported the series despite its controversial edge. The show’s longevity and continued relevance underscore its role as a cornerstone of Comedy Central’s identity.
As Paramount navigates its post-merger future, Herzog’s insights point to a company at a crossroads, balancing its storied legacy with the demands of a tech-driven media landscape. The path forward, he suggests, lies in bold innovation and a willingness to rethink traditional strategies to secure Paramount’s place in an increasingly competitive industry.
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