Paramount is making a major change to its linear and streaming businesses, merging Paramount+ and Showtime in both areas.

Paramount CEO Bob Bakish announced the move in a memo to staff Monday afternoon, confirming rumors that have been brewing for some time.

For starters, both the Showtime linear pay-TV channel and the premium tier of Paramount+ will be rebranded as Paramount+ with Showtime, with Chris McCarthy to lead the Showtime studio and linear channel, and Tom Ryan overseeing the streaming business.

Bakish added that the changes will also “unlock operational efficiencies and financial benefits” for the company.

“While we are confident this is the right move for our company, our consumers, and our partners, we know this change brings uncertainty for the teams working on these brands and businesses,” Bakish wrote. “We are committed to being as transparent and thoughtful as possible throughout this process, and we expect to share additional details in the coming weeks.”

In a memo of his own, McCarthy touted the “complementary” audiences of Showtime and Paramount+, while adding that the company plans to lean into shows that tightly associated with Showtime’s “brand strengths and content filters,” touting programs like Yellowjackets, Billions, Dexter and The Chi.

“To do this, we will divert investment away from areas that are underperforming and that account for less than 10% of our views,” McCarthy wrote. “We have already begun conversations with our production partners about what content makes sense moving forward and which shows have franchise potential.”

More to come.

Bakish’s memo is below:

Team,

Almost one year ago, we announced that ViacomCBS would become Paramount — harnessing the power of our combined portfolio to become one, integrated company. Since then, I have been tremendously proud of the many ways we have worked together across platforms, brands, and continents to consistently deliver as global leaders in the future of entertainment.

In that same spirit, I’m thrilled to share the next step in our company’s evolution. Today, we’re announcing that we will be fully integrating SHOWTIME into Paramount+ across both streaming and linear platforms later this year — providing even more popular franchises and hit originals for viewers to enjoy. To reflect this change, both our premium streaming tier on Paramount+ and the SHOWTIME linear network will become “Paramount+ with SHOWTIME” in the U.S.

SHOWTIME has captivated audiences for decades with ambitious original series that defined premium content and fandom. Its name will always stand for critically acclaimed, groundbreaking entertainment and creative excellence. Now, with SHOWTIME’s content integrated into our flagship streaming service, and select Paramount+ originals joining the linear offering, Paramount+ will become the definitive multiplatform brand in the streaming space — and the first of its kind to integrate streaming and linear content in this way.

This new combined offering demonstrates how we can leverage our entire collection of content to drive deeper connections with consumers and greater value for our distribution partners. This change will also drive stronger alignment across our domestic and international Paramount+ offerings, as international Paramount+ already includes Showtime content. And, very importantly, this integration will unlock operational efficiencies and financial benefits across our broader portfolio.

Chris McCarthy will continue to lead the SHOWTIME studio and oversee network operations for the linear channel. In tandem, he will work closely with Tom Ryan, who will oversee the “Paramount+ with SHOWTIME” streaming business.

While we are confident this is the right move for our company, our consumers, and our partners, we know this change brings uncertainty for the teams working on these brands and businesses. We are committed to being as transparent and thoughtful as possible throughout this process, and we expect to share additional details in the coming weeks.

In the meantime, I would ask for your continued focus. Because of your hard work, dedication and collaboration, Paramount+ with SHOWTIME is set up for success. Thank you, as always, for all that you do.

Best,

Bob