Business
NFL, Paramount discussing media deal that could mean CBS pays an extra $1 billion or more
NFL Commissioner Roger Goodell at the CNBC CEO Council in Arizona, May 19, 2025.
Chris Coduto | CNBC
The NFL and Paramount Skydance‘s renewal talks on a deal to keep the league’s Sunday games on CBS are beginning to take shape, CNBC has learned.
NFL and CBS executives are negotiating a price increase, with a bid-ask spread midpoint around 50% or 60%, according to two people familiar with the negotiations, who asked not to be named because the discussions are private. CBS currently pays around $2.1 billion a year, on average, for its Sunday afternoon games, CNBC has previously reported. A 50% increase would mean CBS would pay more than $3 billion in its next deal.
In return for the increased revenue, the NFL would eliminate the opt-out clause after the 2029-30 season that it put in its original deal with Paramount, part of an 11-year agreement that runs through the end of the 2033-34 season. That clause would have given the league the chance to walk away early.
CBS would begin paying the new fee as soon as next season for the next eight years for the same package of games.
Paramount’s adjusted projection for its earnings before interest, taxes, depreciation and amortization for 2026 is $3.6 billion. If Paramount’s merger with Warner Bros. Discovery is approved by regulators, the combined company would have an adjusted EBITDA projection of $18 billion, Paramount Chief Financial Officer Dennis Cinelli told investors this month.
“We have a phenomenal relationship with the NFL, and we anticipate that continuing for the foreseeable future,” Paramount CEO David Ellison told CNBC earlier this month. “They are one of our most important partners, and we plan for them to stay one of our most important partners, having just delivered a historic season in partnership with them. And, you know, ongoing negotiations, we’re not really in a position where we can comment. I promise we’ll share something as soon as we have something to say.”
Comcast‘s NBCUniversal, Amazon Prime Video and Fox are also subject to the 2029-30 opt-out clause in their deals. Disney‘s ESPN and ABC have until 2031.
Referee Shawn Smith talks to New England Patriots and Seattle Seahawks players before the coin toss for the 2026 Super Bowl, at Levi’s Stadium, Santa Clara, California, on Feb. 8.
Carlos Barria | Reuters
The league has chosen to begin negotiating with Paramount’s CBS before any of its other media partners because a change-of-control provision — stemming from Skydance Media’s acquisition of Paramount Global — allows the NFL to break its deal by 2027.
The NFL might negotiate with Fox next after CBS because the terms of the deal should be similar — both companies own Sunday afternoon packages, one of the people familiar with the matter said.
Fox currently pays slightly more than CBS for its package of games — about $2.2 billion, according to a person familiar with the matter. Fox will “certainly look to [be] continuing that mutually beneficial relationship going forward” with the NFL, but it hasn’t had any “material conversations” on a renewal yet, CEO Lachlan Murdoch said earlier this month at the Morgan Stanley Technology, Media & Telecom Conference.
The NFL also hasn’t begun material discussions with Amazon, NBC or Disney, according to people familiar with the matter. It’s unclear if the league would look to push forward with a similar 50% increase for all three of those packages.
Some executives at NBC and at Disney believe the relative strengths of their packages — Sunday Night Football and Monday Night Football — have diminished as the NFL has given Amazon better games for its Thursday Night Football in recent years, according to people familiar with the matter.
ESPN already pays $2.7 billion for Monday Night Football. A 50% increase would mean ESPN would pay more than $4 billion for that package — a number Disney would likely balk at, according to people familiar with the matter.
Downstream implications
The timing and scope of the NFL’s new deals could have a significant effect on the value of other sports’ rights in the coming years.
The NHL currently has TV deals with Disney and Warner Bros. Discovery, which expire after the 2028 season. NHL Commissioner Gary Bettman has had a number of conversations about renewing a deal before the NFL, according to two people familiar with the matter. Still, he will likely have to wait until Paramount’s deal to acquire WBD closes before inking a new agreement.
“As with an ongoing relationship, you’re always talking about the future, and from our standpoint it’s not in the context of the NFL,” said NHL spokesman Jon Weinstein.
Murdoch said last month that Fox would have to “rebalance” its sports portfolio once it pays the NFL.
Versant CEO Mark Lazarus said earlier this month he’s “prepared for the sports landscape to be shifting,” given the outsize cost of the NFL. That could allow Versant, which owns the USA Network and other cable channels, to buy rights to sports such as the NHL or MLB “that we might not have otherwise gotten involved with,” he said.
Disclosure: Versant is the parent company of CNBC.
Business
Lite fares: Air India may unbundle meals on domestic and short international flights; lounge access for business flyers – The Times of India
New Delhi: Desperate times call for desperate measures. Full service Air India is planning to make meals optional on its domestic and short international (under two hour) flights. Once this “unbundling” rolls out in the next month or two, passengers opting out of meals could have upwards of Rs 250 shaved off their ticket price. While this move, say people in the know, is “on the anvil,” the airline is looking at several other unprecedented measures to fly through the severe cost-revenue turbulence caused by the unending West Asia war.
Air India meal
While not opting for meals could lead to slightly cheaper economy tickets, AI is looking at unbundling lounge access for business class passengers because those opting out of this, could get their tickets cheaper. On an average, lounge operators charge Rs 1,100-1,400 per user at metro airports and Rs 600-700 at non metros. The average spend is about Rs 1,000 per lounge. Many business class flyers are frequent travellers who just make it to airports in time for their flight and do not head to the lounge. If unbundled, this could be a saving in their ticket cost. Banks have been reducing lounge access for credit card users for the same reason to cut their costs.“From Day One, Air India has had meals bundled in its ticket price. Now the way aviation turbine fuel (ATF) price is rising and the rupee crashing since Feb 28, ticket prices are going up. India is a price-sensitive market and raising fares beyond a point leads to a fall in traffic with many opting to travel by train or road. This has led to the rethinking to unbundle meals on some flights. Other steps are also being considered,” said people in the know. Several airlines globally have over the past few years unbundled their onboard offerings. Many international full service airlines offer a basic meal in economy while giving the option of buying gourmet meals at an additional cost. Ditto for alcoholic beverages, with cheaper beer and wines being given at no extra cost while the others being charged for. “For passengers, the distinction between full service and low cost airlines is blurring very fast,” said an industry old-timer.Almost all narrow body aircraft being delivered to AI group will be sent to AI Express fleet for lower cost and more revenue as these single class planes have more seats and don’t offer lounge access and free meals. To increase revenue, the group is looking at having ads behind the boarding cards of Air India Express flights — AI boarding cards have the same already. The Iran war has impacted airlines globally and AI is no exception. The Tata group airline has lost about Rs 24,000 crore last fiscal; has sought funds from promoters Tata Sons and Singapore Airlines; is the worst impacted Indian carrier by airspace closures to the west that have made its Europe, UK and North America nonstops much longer and is looking for a new CEO.
Mercedes-Benz and two other lenders are set to challenge the financial watchdog’s compensation scheme for motorists mis-sold car loans.
The Financial Conduct Authority (FCA) faces a legal battle over its redress programme, as a consumer group has also lodged an appeal.
This development follows days after several of the UK’s biggest lenders opted not to pursue similar challenges.
A spokeswoman for Mercedes-Benz said: “Given that this is subject to ongoing legal proceedings, we cannot comment further.”
The German carmaker is exposed to the car finance mis-selling saga through its financial services arm.
The FCA also confirmed that two other lenders were appealing. It did not name the firms but reports have said that Volkswagen Financial Services was one of the companies involved, according to Sky News.
A spokeswoman for the FCA said: “We have received challenges from three lenders in addition to the challenge from Consumer Voice, represented by Courmacs Legal.
“We are considering our approach and will set out more later this week.”
Earlier this week, it appeared that the watchdog had a clearer path to proceed with the compensation plans after the main industry body joined major lenders in backing out of any legal challenge.
The Finance and Leasing Association (FLA) said it had “concerns” about the programme but that it was choosing not to raise a challenge, while Santander, Barclays and Lloyds had also decided to accept the scheme as it is.
The FCA estimates that payouts are due on 12.1 million mis-sold car finance deals from an array of lenders, expected to result in compensation totalling around £7.5 billion.
The deadline for companies to lodge legal challenges to the watchdog’s scheme passed on Monday.
While the lenders are likely to be resisting the billions of pounds of compensation that they are required to pay, the FCA is also being challenged on the other side of the coin by a group representing consumers.
Consumer Voice has applied to the Upper Tribunal for a review of the scheme over concerns that it could leave millions of consumers out of pocket by several hundred pounds per claim.
The consumer group said it supports the need for an industry-wide scheme but argued that it should “fairly reflect” the harm drivers have suffered, with “properly calculated compensatory interest”.
Business
Paramount CEO David Ellison wants to release 30 films annually. History and Hollywood say it’s unrealistic
CEO of Paramount Skydance David Ellison speaks on stage during the Paramount Pictures presentation at CinemaCon at The Colosseum at Caesars Palace on April 16, 2026 in Las Vegas, Nevada.
Valerie Macon | AFP | Getty Images
Paramount CEO David Ellison is trying to do something that no other studio has done in the modern age of cinema — release 30 films annually.
Ellison once again promised this theatrical feat in front of thousands of exhibitors at CinemaCon earlier this month. Applause erupted from the crowd after he made the pronouncement.
But privately, movie theater operators have expressed concerns and skepticism about the proposed future slate of films. While a massive string of releases would help cinemas, companies doubt he will be able to follow through on the promise.
His 30-film plan would hinge on Paramount receiving regulatory approval for its proposed merger with Warner Bros. Discovery, which the latter company’s shareholders approved last week. Ellison noted that each studio would produce 15 films a year.
However, Ellison has not provided many details about those 30 releases, and it’s not clear how he would hit the ambitious goal. Representatives for Paramount did not reply to CNBC’s request for comment.
It’s unclear if all of the films would have wide releases (meaning they eventually play in at least 1,500 theaters, though the typical benchmark is 2,000). It’s also not certain whether the company will count films it distributes but doesn’t produce as part of this figure, or how many of those proposed titles will be considered tentpole blockbusters.
Movie theater operators and industry experts are skeptical that Paramount would be able to sustain a 30-film slate after the initial merger. After all, part of the consolidation process is eliminating redundancies, which inevitably leads to layoffs as well as cost-cutting measures that often result in fewer productions.
“When it comes to traditional brand-new wide release films, 30 movies a year is a lofty plan given that most distributors are releasing on average anywhere from 10 to 15 wide releases each year,” said Paul Dergarabedian, head of market trends at Comscore.
In fact, in the last 25 years, no studio has released 30 films in a single year. The combination of 20th Century Fox and Searchlight came close in 2006 when the studios had 25 wide releases, according to data from Comscore.
The data also show that when studios have merged in the past, the result has been fewer theatrical releases, not more.
Prior to acquiring 21st Century Fox and its studio assets, Disney was averaging 12 films a year dating back to 2000. Meanwhile, the combined efforts of 20th Century Fox and Searchlight averaged 16 films during that same time. Not including 2020, in which theatrical releases were impacted by pandemic-related cinema closures, Disney has averaged around 13 films a year following the 2019 merger.
The line chart shows the annual film releases by Disney and 20th Century between 2000 and 2019 ahead of the two companies’ eventual merger.
“I don’t remember any instance with consolidation where one plus one equals two,” Eric Handler, managing director and senior research analyst at Roth Capital Partners, told CNBC.
Additionally, a combined Paramount and Warner Bros. slate would face some logistical issues in placing 30 films on a 52-week calendar, as well as competition for coveted premium large format theaters.
The wider Hollywood cohort has also balked at the merger, citing similar concerns about job losses and reduced productions. More than 4,000 A-listers, including Robert De Niro, David Fincher, Pedro Pascal and Florence Pugh have signed an open letter opposing the combination of the two companies.
At least one theater operator, however, is supportive of the merger. AMC CEO Adam Aron came out in favor of Paramount’s acquisition of Warner Bros. during CinemaCon earlier this month.
“Of particular importance are David’s public commitments to expand film distribution by Paramount and Warner to at least 30 movies per year, and his vocal embrace of a 45-day exclusive theatrical window,” he wrote in a statement.
“I am confident that David Ellison is sincere as to his intentions, and truly believe that he in fact will wind up delivering on these commitments,” he added.
‘Empty seats and vacant screens’
However, Ellison’s target would not only be higher than any recent precedent — it would be significantly more.
“Historically, the max you’re seeing out of the studio is sort of 20 a year,” said Doug Creutz, senior research analyst at TD Cowen.
He noted that studios like Disney, Universal and Warner Bros. have the funds to make 30 films annually, but they don’t not only because is it not profitable to do so, but also because few studios have enough quality IP or original stories to put out in a year.
“If you had 30 good ideas, then I’d say do it, but you won’t,” he said. “Most studios don’t have 20 good ideas.”
“I think that the reality of it is that they’ll realize that, they probably realize it already, but they’re saying 30 because you’re trying to get the deal approved,” Creutz added. “I would say my guess is that there isn’t a year where Warner plus Paramount release 30 films unless the slates are already set pre-merger.”
This sentiment was repeated by industry analysts, movie theater owners and even rival studios during private conversations CNBC had at CinemaCon earlier this month. More so, there was an overwhelming sense of tension between studios and cinema operators, particularly when it came to the number of theatrical titles being offered up.
Theater companies would welcome more quality releases, but there has been a shortage of them following the Covid pandemic.
“I tell people that the only thing that exhibition has are empty seats and vacant screens until the studios step up and give us something to play,” one veteran movie theater executive, who requested anonymity to speak candidly, told CNBC. “We have no other alternative.”
The executive noted that re-released films, live sports and concert screenings “don’t pay the bills,” and even concession sales aren’t driving the same kind of revenue that they used to.
“We can’t survive without movies,” they said.
Movie theaters have struggled in the wake of the pandemic because of a lack of titles. Production was slowed due to Covid-related shutdowns and exacerbated when both the writers and actors guilds went on strike just a few years later. At the same time, streaming has become more prominent and studios are producing fewer titles for theatrical release.
Fewer films has led to lower domestic box office hauls. Prior to the pandemic, annual ticket sales routinely topped $11 billion in the U.S. and Canada, but in the years after, the combined efforts of the studios have yet to surpass $10 billion.
This year could break that trend, as the slate of films is significantly larger. However, if a merger does take place, the expectation is that the release schedule will once again shrink.
“We know what’s going to happen,” the veteran theater executive said. “We know that when Paramount eats Warner, it’s going to be exactly like Disney-Fox. There is no difference.”
Other theater operators echoed these sentiments when speaking anonymously to CNBC. They, too, questioned how the gaps in the slate would be filled if Paramount can’t deliver on its 30-film plan.
Amazon MGM has already stepped up to the plate in recent years and has promised at least 15 theatrical releases per year starting in 2027. The studio is on pace to have 13 releases in 2026. One of its recent films, “Project Hail Mary,” which arrived in theaters in March, has set box office records for the studio and delivered audiences to theaters.
However, Amazon’s 15-film annual addition to the overall slate was already replacing the films lost from the Disney-Fox merger. It wouldn’t be enough to also account for any losses in titles from a merger between Paramount and Warner Bros.
“It’s not great for exhibition,” the cinema veteran said. “It’s a lose-lose proposition.”
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