Jaime Morris: Operator, we have time for one last question, please.
Operator: The next question goes to Robert Fishman of MoffettNathanson. Robert, please go ahead. Your line is open.
Robert Fishman: Hi. Good afternoon. I have one for Bob and one for Naveen, please. Bob, can you talk more about the potential licensing opportunities? I’m thinking specifically for Paramount+ exclusive original content, to potentially third parties, and your view on keeping that original content and even your bigger library that’s already in Paramount+ to yourselves versus looking to monetize that content to help drive upside to cash flows going forward? And then, Naveen, any way to help frame how much the Hollywood strikes benefited either the quarter or the full-year 2023? And then on the related note to the first question, as you think about growing free cash flow in 2024 despite the increase in content spending, just if you can help us think about how much licensing helps drive that growth?
Robert M. Bakish: Yes, sure, Robert. So, start with the fact that we continue to believe building a scaled streaming business is an attractive value creation path. If you think about it historically, networks of which streaming is the next or current iteration have had superior value characteristics relative to studios. They allow more control over monetization, particularly in success. They allow control over marketing and promotion, which importantly allows you to use one hit to build another, think the old concept of lead in. And you have direct connectivity with viewers and that’s particularly true in streaming. And I’d remind you that Paramount+ our network really has sustained momentum. It’s ahead of time in terms of the past profitability and it is poised for domestic profitability in 2025.
That being said, we recognize the inherent value of our content and we know that others do too. And that is optionality we maintain, which we believe has real value because the market for high-quality content, feature films, signature series, kids franchises, which is really our wheelhouse in general and certainly with respect to Paramount+, that market remains strong and it just relate back to being at Mipcom in October, where countless clients that I met with and the whole team was there, were looking for great content and needing our partnership, if you will. So, there is a tremendous opportunity there. Again, we think using our content to drive asset value creation in the form of Paramount+ given the momentum we have, is the right Plan A, but we have optionality in that regard and we clearly have valuable product.
Naveen Chopra: Let me try to hit your question, Rob, on free cash flow, licensing, strikes, etcetera. And I’d start by just saying we are intending to deliver free cash flow growth in 2024. That’s very important. And the biggest driver of that is significant improvement in OIBDA, and we’ve talked about the various contributors to that. Licensing is one of the contributors. As I said, I expect licensing revenue to grow in the year, and that benefits both OIBDA and cash flow. But I wouldn’t say that it’s sort of an inordinate impact relative to what it has been in prior years. I’d also note that our cash spend in ’23 came in at about $16.5 billion. That was lower than the prior year as a result of the strikes. And our plan for ’24 contemplates spending really only about 50% of, call it, the strike savings back.
And, that’s a critical ingredient in our ability to drive healthy growth in free cash flow in the year. So, that’s something we’re looking forward to executing against.
Robert M. Bakish: Yes. So in closing, we’re really proud of what we accomplished in 2023. And as we look ahead to 2024 and beyond, we’re focused on disciplined execution and in doing so, positioning the company to return to significant total company’s earnings growth this year and Paramount+ domestic profitability next, generating more value for our shareholders. With that, thank you for joining us. Be well, and we’ll talk to you soon.
Operator: Thank you. This now concludes today’s call. Thank you for joining. You may now disconnect your lines.
