Paramount Skydance Corporation (PARA) Earnings Call Transcript & Summary

It is a great pleasure to welcome Bob Bakish, CEO of ViacomCBS to our Bank of America Securities Conference. So welcome, Bob.

Thanks, Jessica. Great to be here.

It's great to see you not live, virtually.

It's a Zoom existence we're living these days. It's the next best thing, right?

It is. So with 9 months under your belt as CEO of the recombined Viacom/CBS, how have your key priorities changed?

Well the reality is our key priorities haven't changed. We continue to focus on and deliver on value creation. And for us, that means unlocking the power of ViacomCBS and specifically our synergistic combination of studios, networks and streaming. Each of those elements are significant on a stand-alone basis, but it's the combination that really unlocks enormous and powerful synergies. So we do that 3 ways. First, maximizing the power of our content, really leveraging our portfolio of compelling content and IP across this now larger asset base and, importantly, continuing to align content spend with growth potential in this shifting landscape. Second, we do it by unlocking value from our biggest revenue streams, and that's distribution, advertising, content licensing. And here, you've seen early signs of the power of the combination, particularly in distribution with, of course, more to come across all of those. And third, by accelerating our momentum in streaming. And we play across both free and pay globally. And here, we have a differentiated position and real momentum. Now as it relates to the pandemic, look, we're successfully managing through. Executing our strategy, rapidly integrating the company and harvesting synergies, producing operating momentum on multiple levels and delivering solid financial performance.

So since you brought up the pandemic, which is [indiscernible], anyway. But how -- has that changed your longer-term strategies at all?

Not really. Of course, we continue to monitor behavior, consumer behavior very carefully. And again, this goes to optimizing our -- on spending against growth potential. But we're focused on serving the broadest array of consumers. That's across linear. That's across streaming. Obviously, it's globally. So while we do very carefully pay attention to pandemic and the state of it across all different areas of the world, we're really continuing to execute our strategy and very pleased with our progress.

As the world is shifting to direct-to-consumer from linear, how are you planning to pivot your businesses in terms of originals versus reusing library content? And then can you talk about like content licensing to third parties versus keeping your content in-house?

So look, Jessica, streaming is clearly important, and we're progressively leaning more and more into it. And the good news, as a by-product, we're seeing strong momentum in users, in subscribers, in consumption, all of which are showing very material growth trajectories. You look at free or fast as it's now known, we have the #1 service in the U.S. in Pluto TV. It's really cranking. On our call for Q2, you heard that domestic MAUs grew over 60% to 26.5 million. And we remain confident that Pluto will reach 30 million domestic MAUs by year-end. In fact, Pluto has had record months of MAU growth both in July and August, and consumption is growing even faster. And importantly, it's not just usage. Monetization is extremely strong, too. Back -- look at August, our highest revenue month ever, including several of our highest revenue-generating days ever. And Pluto is back to pre-COVID growth and then some. So in parallel to all of that, our international expansion is off to a strong start. Again, in Q2, we delivered over 6 million MAUs across Europe and Latin America. So very happy with how we're playing in fast. And in pay, more commonly referred to SVOD, here, we have growing momentum as well. We ended the second quarter with 16.2 million paid subscribers. That was up 74% year-on-year. And in fact, we reached our year-end goal 6 months ahead of plan. So we're now on track to reach an increased goal of 18 million subscribers by year-end. The revenue side, subscription revenue has also been growing extremely fast, up over 50% in Q2. That was an acceleration from Q1. And we expect subscription revenue growth to accelerate again in Q3. Now here, I'm super excited about CBS All Access and its journey to becoming a super service. All Access, as you know, already has a strong foundation of entertainment, news and sports. Of course, it's entertainment spanning all CBS shows and a growing roster of All Access originals like Star Trek: Discovery, Picard and The Good Fight. Sports includes the NFL, college football, basketball, golf and soccer, plus national and local news and major events like the Grammys, the Tonys, Super Bowl. Now in late July, we added substantial Viacom Media Networks and Paramount content to CBS All Access, which, in effect, is a preview launch of where we're going. More specifically, we added over 190 Paramount movies plus 3,500 television episodes from Viacom brands like MTV, Nickelodeon and BET. And those changes are already paying off for us. Streams and time spent have increased significantly since the preview launch. In fact, in August, a strong double-digit percentage of time spent on the platform came from brands that were not on the service before. And we're also seeing a notable reduction in the average age of CBS All access viewers. So the preview launch is demonstrating the potential, and we're on track for our relaunch of the service in early '21. We'll rebrand All Access and have a significant marketing campaign. We're also expanding the original slate significantly to cover all of the brands. As an example, for Nickelodeon, Paramount's film Sponge on the Run will skip theatrical and make the streamer its exclusive U.S. home. And we'll drop Kamp Koral, which is a Spongebob spin-off series, as the first Nickelodeon original. As an example, with one brand, we're going to be doing stuff like that with all of the brands. The end result will be a compelling, differentiated ViacomCBS streaming super service, which offers consumers a broad and differentiated product at a compelling price point. And it's going to have wide demographic appeal: kids, young adults, millennials, older adults. It's going to have a very robust offering of entertainment plus sports and news. It's going to benefit from franchise IP and our substantial marketing assets. So stay tuned for upcoming announcements on this in the near future. And lastly, with regards to third-party licensing. Look, we maintain a disciplined and prudent approach here. And importantly, every decision we make on licensing is done in the context of the needs of our own streaming platform, and we have a multiyear view on that, that we use as the basis for decision making.

Great. So while these metrics are really impressive, you still don't break it out as a separate line item. Is DTC profitable? And at what point will you break out revenue and EBITDA, potentially allowing ViacomCBS to get more credit for these growing assets?

Yes. So Jessica, when we combined Viacom/CBS, one of the commitments we made was to enhance disclosure. And as part of that, we now report key streaming-related metrics on a quarterly basis. These metrics include Pluto MAUs, pay subscribers as well as domestic streaming and digital video. And to your comment, that disclosure shows that, as of Q2, we had over 16 million domestic subscribers in pay and 33 million global MAUs in free and, again, strong growth rates. It also showed we had close to $2 billion in domestic streaming revenue on an annual run rate basis. That's up -- it was up 60% in 2019. It's up 37% year-to-date in the second quarter, and that includes the impact of COVID on digital advertising in Q2. So we believe this disclosure is helping investors begin to understand the very real value we're creating, particularly in the streaming space. And this disclosure does mirror how we run the business. Because for us, streaming is embedded in -- across multiple business units, so we don't report it as a consolidated segment. Instead, we're using these additional metrics to provide investors the visibility they need to measure our growth. But that said, as our streaming efforts evolve, we're going to continue to assess whether changes in reporting are warranted.

Do you think of CBS All Access, Showtime and Pluto as completely separate products? Or will they be offered as bundled together?

Yes, it's a popular question. So what we're doing is building a linked ecosystem of free and pay streaming offerings, including our super service, Showtime OTT and Pluto TV, each of which will be available individually. Now we believe this approach serves the broadest set of consumers' needs and, therefore, the largest consumer base. It enables the most ubiquitous distribution. And we've learned over time ubiquitous distribution is extremely powerful. It maximizes the value of our content across all platforms and allows our company to benefit from an ecosystem which will become more integrated over time, which will enable cross-selling and other subscriber value-maximizing levers. Now one of the things we feel really great about with our streaming services is their broad distribution. And as we've done in the traditional ecosystem, we forge reliable and mutually beneficial partnerships with all the major streaming distribution platform. And that provides us with a very strong position in the marketplace, including relative to some of our competitors. So for example, we have partnerships with Apple, with Amazon, with Comcast, with Verizon, with Vizio, just to name a few. And there are, of course, many more. And importantly, many of these have preferred or built-in placement, which obviously benefits us from an audience perspective. And we can do this because we do have this range of services from free to basic to premium that work for a wide range of partners and serve different needs. We also benefit from not being vertically integrated with any one distribution platform. And look, I look at it and I believe this partnership model means we're extremely well positioned to continue to scale our streaming business. And on a related note, I'm pleased to share that we've just renewed our CBS All Access channel with Prime Video and entered into another multiyear distribution agreement with Amazon. They continue to be an excellent partner for us and we for them. Now to your specific point on bundling, our promotion with Apple is a perfect example of our broad distribution and our bundling. So through Apple, consumers can currently subscribe to a bundle of CBS All Access and Showtime for $9.99 a month. This bundle is beneficial to ViacomCBS as it will both drive subscribers and reduce churn. And the offering is beneficial to Apple as they look to increase their participation in the over-the-top space. So we're excited about it. And of course, we're going to explore other potential bundling opportunities as well as more generally increased distribution through other forms of streaming partnerships as we move forward. But again, this approach to distribution, we believe, is differentiated and highly advantageous for our company.

Right. So maybe switching gears a little bit, but this has been an exceptional news [ year ]. Has news been a big engagement -- driver of engagement for your streaming platform?

Well for sure, it's been an extraordinary year. And the good news is our news business has been performing really well. This starts on the linear side, where we continue to have important #1 positions, including with 60 Minutes, which is TV's #1 primetime news program; and with CBS Sunday Morning, which is #1 in that daypart. I'm also happy to note that, since March, total viewers for the CBS Evening News with Norah O'Donnell have grown double digits year-on-year. And we're gaining share during the week with CBS This Morning. So those are all good things for our news franchise. Now in streaming, our news franchise is growing even more dramatically. On All Access, year-to-date consumption, engagement and users have more than doubled versus the prior year. And total CBS new streaming consumption is growing even faster, benefiting from broader carriage, including on Pluto TV. And if you look at the first 8 months of 2020, they are the top 8 all-time months for both CBSN, which is our national news feed; as well as for CBSN Local. And both of those segments are delivering triple-digit year-over-year growth. And again, like the general streaming, it's not just usage, it's also monetization. We're seeing advertisers lean into this platform, which bodes well for the future. And I guess, on news, I'd make 2 final points. First, being in both linear and streaming news has real advantage. It allows us to leverage capabilities and amortize costs. And second, streaming news is a differentiating and added element for our overall streaming strategy, particularly when it comes to user engagement. So in an extraordinary year, news has become -- has continued to be a real asset for us, particularly as we pursue the streaming space.

And this must be a fairly large cost center. Longer term, do you feel like you're monetizing this as well as you can? Or are there other ways that you could drive profitability in this area?

Well I think it goes to 2 points. One is, it's why it's important to be in the multi-platform news business so you can amortize that cost base across a broader set of revenue streams. And second, it goes to the real benefit we're seeing from having rapid growth in usage in streaming and, in this case, in news because we're able to monetize that in the ad market. So I think that puts us on a very good trajectory for this segment of the business.

Turning to sports. How does sports play a role in your streaming strategy? And what sports are must-haves versus nice-to-have?

Well look, as in news, CBS has a really powerful foundation in sports. It's clearly part of the legacy of CBS. And like in news, we're leveraging that foundation as an integral part of our streaming strategy. Of course, we have NFL football, including exclusive in-market rights. We have college football. We have the NCAA basketball. We've got golf and now soccer on our All Access platform. And if you look at that relative to our competition, the inclusion of sports really is a significant differentiator for us in streaming. And if you look at the underlying data, or I should say, when we look at the underlying data, sports is a key driver of sign-ups and engagement with the service. And so we like the sports space, and we're not standing still. As you know, we recently added UEFA soccer, or European football, to the ViacomCBS portfolio, and that was an important incremental move. We were able to take advantage of a market development, which allowed us to pick that franchise up early. So now these matches are available exclusively in the U.S. on All Access through 2024. We are putting a small number of matches on linear, and that is something that really helped us in the process of getting these rights. And you look at the consumer of UEFA, it's young, it's diverse. It's a passionate fan base. And that's really going to help us grow the All Access subscriber base. And in fact, it already has. UEFA's performance for the first round of matches in August exceeded our expectations. So we're really happy with sports. We're happy with UEFA, and we feel it's just fundamental to our strategy in streaming. Popular question always is the NFL. Look, we are longstanding partnerships -- partners with them. The relationship has been mutually beneficial. As ViacomCBS, we're even better positioned to drive value for the league and ourselves. And guess what, we just proved it. This week, the NFL and Channel 5 inked a 3-year deal to -- Channel 5 is our U.K. broadcaster, to bring Monday night football live to British fans, and that's starting next week. It's actually a multi-platform deal. We're also going to do some NFL content across the MTV international digital platforms in the U.K. We're going to do a Sunday show. And simultaneously, we also extended our deal with the NFL on Pluto TV. So that sport is obviously important. Again, we have a long history with it, a mutually beneficial history with the league. And I'm confident that it's got a long run ahead of it. And I'm thrilled that the sport is coming back this week. So really exciting times for the NFL, really exciting times for sports, really exciting times for us in the streaming space and, again, integral to our strategy.

So with that, can you provide any update on the next round of NFL negotiation?

There's not really an update other than, as I said, we are strong partners with them. We're in dialogue with them all the time. They're obviously focused on getting this season up and running, which they're doing. But again, we just did 2 incremental pieces of business with them, which you should look at as important. One is extending the partnership to our international networks. That's something we've talked about conceptually. We've now done it practically with a new 3-year deal. I know the NFL is excited about it. And again, extending our partnership on Pluto TV. . These are all important elements. They highlight the power of ViacomCBS assets and the strength of our partnership. So I'm confident this partnership will go on for a while. But other than that, I don't have a specific update.

So we recognize how important the NFL is to ViacomCBS' traditional business, how will you value the out-of-market rights?

Well so we have -- the way the NFL works on All Access is obviously through our games that are played locally and then we have national games. So we value those rights significantly. We just picked up, again, U.K. Monday night football rights. So we look at all these on an individual basis and look to deploy them to create value for ourselves and, frankly, exposure for the league.

Who's your competition for these rights?

Well there's 2 forms of competition. Obviously, we're not the only broadcaster in the country. There's other broadcasters that exhibit the NFL and are interested in being that business presumably. And then there is other entities that have pursued them. But I can tell you that based on the conversations I've had numerous times with the leagues, the leagues value broadcast reach unquestionably. They value the very high-quality production that CBS brings and dependability of that. And they value the fact that we are increasingly a multi-platform player and a global player. So again, this positions us very well with the NFL and positions us to create value both for them and for ourselves.

Let's transition into advertising. How has the advertising market raised the return of sports?

So sports is good for advertising. And the demand for the return of sports has been very strong. We saw that first with golf in the summer. And we're seeing it again now with the NFL and with college football. Spending across most categories for sports has been robust with real strength from the insurance category and the fans. So advertisers love sports. Again, they're an important part of our offering both on CBS linear and on All Access. And the monetization of that has been proving to be strong because that content cuts through with the consumer.

And can you give us any update on what's going on in this incredibly unusual upfront market? And within that context, also talk about what's going on in the fall TV season in terms of production and scheduling. And I guess, finally on that [ market ], anything you can say on scatter market trends?

Well let's start with production just because it's a topic that's of interest to advertisers, and it will lead into why we're feeling very good about both the scatter market and the upfront. So production is clearly complicated in a COVID world, but it's rapidly moving in a positive direction. If you look at the network, CBS, we already have a range of fresh programming on air, 60 Minutes, Big Brother, Love Island, Amazing Race. Later in September and October, we're going to have -- -- we're going to take Star Trek Discovery, which is a CBS All Access series, and use it as new to broadcast. We also have One Day At A Time, and we have a show, Manhunt: Deadly Games. So we got a bunch of new content. We also have been ramping up production for primetime shows. So NCIS -- NCIS L.A. and S.W.A.T. are now back in production. We have another 10, maybe 11, shows as of yesterday that are clear to start production. And most of those are going to resume by the end of September. But I think the really interesting thing is, and it highlights the creativity and the robustness of our assets, if you look at our primetime original programming hours for September and October and you compare that to 2019, they will be either the same or potentially larger, depending how the SEC and some specials play out. So we have a very robust lineup of fresh programming for September, October. And then given the production I talked about that's going up now, we'll have a really full slate -- virtually full slate back, on air in November based on what we're seeing. So the network's in great shape. Likewise, the cable side has been moving quickly. You look at Trevor Noah. He's pretty much on air through the whole pandemic. Tosh.0 is back in production. That will premiere next week. Catfish and Ridiculous have been up since August. Teen Mom and Ghosted just returned. We got Yellowstone Season 4 now back in production. We have 2 Drag Race series in process. One is already wrapped and in post. One is in production. And on the animated side, Loud House Season 5, which is a hit, is coming this month; and the second season of Casagrandes, which is also a hit, coming in October. And so we got a lot going on, on production. Again, it's been complicated, but it's definitely moving in the right direction. And because of that, we've been able to give advertisers real specificity of what product they're going to be able to be part of, including in the fall, and that has helped us greatly. So let's talk a little bit more specifically about ad sales. Big picture, Q2 was clearly the bottom in terms of year-on-year rate of change in ad revenue, and we continue to expect to see meaningful sequential improvement in Q3 and Q4. Why? Because the scatter market continues to improve. If you look at the third quarter in broadcast, scatter is up strong double digits. And the scatter premiums are extremely strong in pricing. And in fact, I wouldn't have predicted this a month ago, but scatter premium is now higher than it was before COVID across all dayparts. So scatter is in great shape. Performance is really being driven by pharma, by retail, by insurance, by financials. Obviously, the film studios aren't really there. But in general, scatter market, very strong on the broadcast side. And cable has been picking up nicely, particularly relative to what we saw in Q2. So that's a good omen for the future and for the third quarter. On the upfront, things are very, very far along. We are feeling -- we always thought it would take longer, and it did. But we're feeling great about where things are shaking out both on volume and on price, again, particularly relative to what we feared we might be looking at just a couple of months ago. So that's in good shape. And now local and political is really starting to kick in. You look at local, which was probably the hardest hit of the ad markets, that continues to improve sequentially in Q3, with improvement across all categories. And by all, I mean retail, auto and services. Auto is critical to local, and we see that category having improved each month. And we believe it will be back to normal spending levels by the first half of 2021. And at the same time, political, I mean we talked about this extraordinary year we're in. 2020 is clearly on track to be a record political year. And that's something that will very significantly benefit our station group. So again, overall, Q2 clearly the bottom in advertising; very, very good trend line we're seeing in Q3, very solid upfront. So feeling very good about where that business is going.

Okay. Can you give any more color on political like what your expectations are on that front?

We don't break it out that way. Again, what we've said historically and what I'm going to stick to is clearly going to be a record year in political. It will overwhelmingly benefit late Q3 and Q4. But where you're seeing great demand, again, market by market.

And what are your contingency plans if production is further delayed? I mean you've seen that Batman had to be delayed in the U.K.. But do you have a plan B?

Oh, we've got at least through plan F. That's the beauty of ViacomCBS. We have tremendous breadth of programming assets. I'll give you some examples of what we're doing. So you look at Love Island as an example. It's production in a bubble in a Vegas hotel. And both for Big Brother and Love Island, we're doing more hours than we have historically, which is helping us. We've set up a number -- we're setting up an offshore reality hub for the media networks, where we're going to produce content, again, kind of in a bubble. Tyler, who works with us on the -- Tyler Perry, works on the BET side. He's been producing in Atlanta. He first produced Sistas with no issues, now The Oval. So that's working very well. And again, in terms of other kinds of contingencies, we took an All Access series, which was never seen on broadcast. So Star Trek: Discovery, we're going to air season 1 on broadcast. And by the way, we're going to promote to season 3 on All Access in October. So we think that's a great, great move. We're bringing the Paramount Sunday night movie block back. So we've got a range of real contingencies. And the other thing I would say is the COVID operations also highlighted the robustness of our broadcast and our news infrastructure, where as things happened, we were able to pivot and continue to keep product on air for the American consumer. So yes, there's a bunch of unknowns, but we got the breadth, we got the expertise. And look, we will unquestionably have some things that we're going to have to deal with, maybe some things shut down. But at the same time, we've got a lot of levers to pull. And it's not just TV. We started Mission: Impossible 7, the film, this week overseas. So things are clearly moving in the right direction. But obviously, you have to be on your feet because you have to react to issues.

Right. Let's move on to the cable networks. We're seeing massive declines in pay TV subs, not just in the U.S. with linear subs, linear advertising declining, content cost increasing. Can you talk about how you're planning to manage through this dynamic? And are there differences that you can take short term versus longer term?

Yes. So let's start with distribution in the cable space because I think it's a really powerful story. It highlights the power of ViacomCBS. And the fact of the matter is we've had a very successful run of renewal activities here. And by that, I mean we were in Comcast in January, Verizon in April, YouTube in May and DISH in July. And they're all examples of the power of the combination. They're the evidence of our strong and leading position in linear combined with our broader ability to create values for our partners. That might be through advanced advertising, through free streaming app like Pluto, through subscription apps like CBS All Access and Showtime OTT. So in a time where MVPDs are more difficult to deal with, we really have tremendous assets and ability to get deals done, and that's what we've been doing. So that helps our share, if you will, in the pay TV ecosystem. At the same time, we're benefiting from strong reverse comp renewals on the station side. So those are deals with Meredith and Nexstar earlier in the year. And then we more recently [Audio Gap] they have built in escalators. They set us up well for the balance of the year and beyond. And despite what you're seeing in terms of subs in the ecosystems, as previously guided, we continue to expect to see sequential acceleration in domestic cable affiliate and total cable affiliate revenue in Q3 and in Q4. And we expect total company affiliate revenue to grow for the year with growth in pricing, retrans, reverse comp and streaming more than offsetting subscriber decline. So this is a very important point. We have an affiliate business that is growing through the changing ecosystem, and it is clearly benefiting from the power of the combination. It's also worth noting that our ad business is benefiting from what we're doing on the distribution side. The 2 most notable points there are adding Viacom networks to YouTube TV, where they launched in July with a proof point for the power of the deal; and Pluto getting carried on Verizon not only for connected TV, but also for Verizon Wireless, which sets it up for a nice next leg of growth. And again, it's another example of the kind of things we can do with distributors who have different needs and really leveraging our assets to solve a broad range of problems for them.

With Sumner Redstone's passing away in August, has anything changed in terms of how the company is thinking about M&A or asset sales?

Look, Sumner was a true industry titan. His influence on the media and entertainment landscape cannot be overstated. And his guidance and leadership certainly have left a permanent stamp on our company and helped shape who ViacomCBS is today. But as it relates to M&A or asset sales, the fact is nothing changes as a result of his passing. In terms of M&A, we, as I said, remain focused on our transformational ViacomCBS deal. We have begun to extract the value from it and believe there's a lot more to unlock, and we're working hard to do that. And you will see us continue to deliver that. And we'll talk about that next -- probably on our third quarter call in November. In regard to asset sales, as I said in the beginning, our business strategy is focused on 3 interrelated businesses: studios, networks and streaming. If an asset falls into 1 of those 3 categories, we view it as core to our business. If it doesn't, we view it as a candidate for disposition. And we have previously announced 2 assets that don't fit that definition. And that's our Black Rock building in Manhattan as well as Simon & Schuster. Good news is we've seen significant interest in both assets. And while both -- we're not doing anything at the moment, we do look forward to proceeding with that sale -- those sales processes as market conditions allow. And by the way, as we've said previously, we will take proceeds from asset sales and use that to delever the company. We are in a very secure financial position today. We do have strong cash flow. We have very significant cash on our balance sheet. We have no upcoming maturities until 2022, but we will use excess cash to reduce debt and reach our 2.75x leverage target. And part of that, of course, will be driven by asset sales that we close over time.

So we have time for one more question before I'll turn it back to you. But once scripted production activity begins again in scale, how are you thinking about the level of cash content spend that you need to invest in both linear and direct-to-consumer content and the implications on free cash flow for the balance of the year and for 2021?

Yes. Sure, Jessica. So I'd start by saying we're very pleased with the free cash flow generation of this company in 2020. You look at the first half of the year when we've delivered very strong free cash flow, of course, that has benefited from COVID-related production delays. But it's also benefited from all the work we've done on the cost side, both operating cost and related to the integration. Now as we look to Q3, we expect cash flow generation to continue to be very strong, continuing to benefit from our integration savings, which, as you know, we increased on our second quarter call. And in the third quarter, we will continue to have a lower-than-normal level of production. So that will be a benefit. We do see production ramping up. As I said, we're starting to do that now pretty significantly. We think that materially impacts working capital more in the fourth quarter and as we get into 2021 than the third quarter. But bigger picture, I think there's 2 really important points here. One is we continue to be very rigorous about rationalizing our expense base. Again, you've seen us integrate assets in terms of combining cable networks into fewer groups. You've seen us combine -- create a single ad sales organization, single distribution organization, single content licensing organization. We are very focused on shifting the mix of our content investment from lower-growth areas to higher-growth areas. That's principally going to play out on the streaming side in terms of, as I said, when we get into '21, increasing that slate of originals on All Access, which will be rebranded. And that rigorous approach will benefit free cash flow over the long term. But of course, we do have to manage through this COVID ramp at Q4 and early '21.

Right. So I mean we're pretty much out of time, but I just wanted to see if you have any closing remarks that you wanted to make.

Well I'd start with thanks for having me. I mean it's really great to see you. We obviously miss in-person contact in this COVID environment, but it's great to see you virtually. I'd say a few points to wrap up. First, the integration of ViacomCBS is proceeding rapidly. COVID has not slowed us down. In fact, if anything, it speeded us up. We're capturing growing synergies on the cost side and already proving out the distribution value-creation thesis on the revenue side. Second, as we just talked about, we're proactively managing through COVID. Our cash flow generation is strong, and we're seeing a rapidly improving ad market. And third, streaming is a major focus for this company. Our strategy really is differentiated, and our exposure both to the free and pay segments will serve us well. You look at the numbers, we have very significant momentum. We're on a rapid growth trajectory, and we got more to come strategically. So very exciting. So I look forward to seeing you again, either virtually or in person, and updating everyone on our continued progress. In the interim, everyone, stay well and play through.

Thank you so much. Great to see you, Bob, and thank you so much for joining us.

Thanks, Jessica. Bye-bye.

Bye.