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Disney+ and Paramount+ Forge Strategic Partnership

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  Published in Media and Entertainment on Saturday, November 29th 2025 at 17:52 GMT by Los Angeles Times

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David Ellison’s Paramount Deal: A New Chapter in Streaming Alliances

On July 7, 2024, the Los Angeles Times published a detailed report on a breakthrough negotiation between Disney’s streaming chief, David Ellison, and the long‑time chair of National Amusements, Shari Redstone. The deal, described as a “strategic partnership” between Disney’s streaming platform Disney+ and the rival Paramount+, marks a significant shift in the competitive landscape that has seen streaming giants increasingly lock horns over content, audience reach, and brand identity.

The Negotiation at a Glance

Ellison, who has overseen Disney’s shift from a traditional media company to a streaming‑first powerhouse, reportedly struck a content‑licensing and co‑distribution agreement with Redstone that will allow Paramount’s library—spanning blockbuster films, original series, and classic television—to become available on Disney+. Conversely, Disney’s expansive catalog, which includes Disney, Pixar, Marvel, Star Wars, and National Geographic, will gain a platform on Paramount+. The deal is said to involve a revenue‑sharing model and a joint venture that could eventually merge the two services into a single, multi‑brand streaming ecosystem.

While the exact financial figures have not been disclosed, analysts estimate that the partnership could bring in tens of millions of dollars annually for both sides, based on current subscriber revenue models. The agreement also includes a clause that allows each company to showcase its flagship original content on the other’s platform, thereby widening the audience for series such as “The Falcon and the Winter Soldier” and “The Boys.”

Why This Matters

The streaming wars have been characterized by fragmentation and content hoarding. Disney, which launched Disney+ in 2019, had a relatively small catalog compared to competitors like Netflix and Amazon Prime Video, but it was able to mitigate this through exclusive Disney‑owned franchises. Paramount+, meanwhile, struggled to grow its subscriber base, lagging behind Disney+ and Netflix in key markets. By combining their libraries, both companies stand to expand their reach dramatically.

Ellison’s prior experience negotiating the Disney+ Hulu joint venture with Comcast in 2019 proved invaluable. He has built a reputation for being able to “speak the language” of both traditional studios and modern tech‑focused platforms. In the same way, Redstone, who has steered Paramount through the digital transformation of its content distribution, has shown a willingness to re‑evaluate long‑standing competitive postures. The deal thus signals a broader industry trend of cross‑company collaborations to survive a saturated market.

Strategic Implications for Each Player

For Disney: The partnership gives Disney immediate access to a library that includes high‑profile action and comedy titles that resonate with the adults demographic—a segment Disney has struggled to penetrate. By bundling Paramount’s content with its own, Disney can attract new subscribers who may have previously viewed Paramount+ as a better fit for their tastes. Moreover, the revenue‑sharing model reduces Disney’s risk of cannibalizing its own content.

For Paramount: The deal offers Paramount a pathway to scale its streaming service without the need for a costly, full‑scale marketing push. Disney’s vast distribution network—particularly its direct‑to‑consumer marketing infrastructure—provides Paramount with a channel to reach audiences that were previously out of its reach. In addition, the joint venture could bring in a new wave of investment and possibly lead to a re‑branding of Paramount+ to emphasize its broader content mix.

A New Era of Collaboration?

Industry insiders note that this partnership represents a break from the usual “keep‑your‑own” approach that has defined streaming relations. In the early 2020s, we saw Disney acquire a stake in Hulu, then sell its stake back to Comcast, only to later partner with Disney+ and Hulu again. Similarly, the 2023 “BFF” (Best Friends Forever) agreement between Netflix and a major studio for exclusive content distribution illustrates how streaming companies are looking beyond vertical competition.

Redstone’s involvement is particularly noteworthy. She has a long history of pushing strategic alliances that maximize value for her portfolio companies, whether that means partnering with Apple for the Disney+ “Star” content package or working with AT&T on the Paramount+ and HBO Max merger talks. Her negotiation with Ellison underscores a willingness to adapt in an environment where the old media business model is under threat.

Follow‑up Articles and Context

The LA Times article itself referenced two prior stories for readers seeking a deeper understanding of the dynamics at play. One link led to a 2023 exposé on Disney’s “streaming strategy” that highlighted the company’s earlier reluctance to partner with competitors, while another guided readers to a 2024 feature on Shari Redstone’s broader corporate strategy across National Amusements. By combining these pieces, the Times painted a full picture of how Ellison’s negotiation style—characterized by “data‑driven storytelling” and a deep understanding of content economics—meets Redstone’s “pragmatic partnership mindset.”

Looking Forward

The partnership is still in its early stages, and both companies will need to address technical integration and brand identity issues. Disney’s and Paramount’s content teams will have to decide how to present the co‑branded catalog—whether as a single merged platform or as distinct “channels” within a unified app. In addition, there are regulatory considerations; the U.S. Department of Justice will likely review the deal for antitrust implications given the potential consolidation of two major streaming services.

If successful, this partnership could serve as a template for other alliances. Companies such as Amazon Prime Video and Netflix may take note of the strategic advantage that comes from pooling resources, especially as the streaming market enters a phase of consolidation. Moreover, smaller studios could leverage this partnership model to get their content onto larger platforms without the need for separate deals with each streaming giant.

In short, the Ellison‑Redstone deal signals a turning point in the streaming wars: a move from aggressive competition toward strategic collaboration that prioritizes consumer access and content diversity. As Disney+ and Paramount+ begin to merge their libraries, audiences may find themselves in a more enriched streaming ecosystem—one that balances the blockbuster appeal of Disney’s franchises with the gritty realism of Paramount’s originals. Whether the partnership will ultimately deliver the expected revenue growth and subscriber gains remains to be seen, but it is clear that the landscape of streaming media is evolving, and the next chapter promises to be as intriguing as the first.