Paramount to combine Showtime with its main streaming service

Why it matters: Streamlining the entities will help Paramount unlock "operational efficiencies and financial benefits" across the company's broader portfolio, CEO Bob Bakish said in a note to staff announcing the changes.

• His memo implied that organizational changes, which typically include layoffs, could be on the horizon.
• "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," he noted.

Zoom in: The changes are meant to help position Paramount as the company's premier brand across streaming and linear television.

• Later this year, Paramount will rename its premium tier for Paramount+ as Paramount+ with Showtime.
• Showtime's U.S. linear network will also be rebranded to the same name.

What's happening: Showtime's content will be integrated into the premier subscription tier of Paramount+.

• Some Paramount+ original content will make its way to the rebranded linear network.
• Chris McCarthy, who currently leads all of Paramount's media networks, will continue to lead Showtime's studio and oversee network operations for its linear channel, Bakish said. Tom Ryan will oversee the streaming side.

Be smart: The changes have been anticipated for months. Paramount Global said it would bundle Paramount+ and Showtime for a discounted rate last September.

• Paramount already offers some of its Showtime content on its international Paramount+ streaming product.

Go deeper: Paramount+ adds Showtime as more streamers offer bundle deals