Paramount struggling to convert successful linear TV business into streaming, says Wolfe Research's Pete Supino

February 17, 2026 - 18:20

While the potential merger of Paramount and Warner Bros. Discovery captures headlines, a fundamental issue remains at the heart of Paramount's strategy. According to Wolfe Research analyst Pete Supino, the media giant's core struggle is its inability to successfully translate the strength of its traditional television business into streaming success.

Paramount boasts a powerful portfolio of linear TV assets, including CBS and popular cable networks, which continue to generate substantial revenue. However, converting that legacy audience and profitability into a thriving direct-to-consumer streaming model has proven difficult. The company's Paramount+ service, while growing, operates in a fiercely competitive and expensive landscape, requiring immense content investment to attract and retain subscribers.

This challenge forms the critical backdrop to any major corporate move, such as a merger. Combining with another entity may offer scale and content library depth, but it does not automatically solve the underlying business model transition. The industry-wide pivot from linear's steady profits to streaming's subscriber-driven growth continues to pressure legacy media companies. For Paramount, bridging this gap remains its most pressing task, regardless of its corporate structure.