Paramount Skydance Corporation (NASDAQ:PSKY) CEO David Ellison is reportedly exploring ways to bring new life to MTV and other legacy cable networks as pay TV declines.

Comcast Corporation (NASDAQ:CMCSA) spun off its cable networks into a new entity, Versant. Similarly, Warner Bros. Discovery Inc. (NASDAQ:WBD) plans to split its studio and streaming operations from its traditional cable assets.

Also Read: Paramount Skydance Turnaround Could Take Years To Materialize, Says Analyst

At a recent private dinner, Ellison and his team, including company president Jeff Shell, discussed with former MTV executives how the network, once a cultural powerhouse, could reclaim its role as a music tastemaker.

Ellison acknowledged that MTV's brand faces significant challenges but also holds potential. He has received suggestions from music industry veterans such as Irving Azoff and Universal Music Group (OTC:UMGNF) CEO Lucian Grainge.

The Wall Street Journal report highlights that ideas included leveraging MTV's archives, hosting live events, and expanding its digital footprint to engage younger audiences.

Andy Gordon, chief strategy officer at Paramount, told WSJ that brands like MTV could thrive beyond traditional cable formats. With streaming services eating into pay TV audiences, Paramount's cable operations are under pressure.

Nielsen reports that MTV's median viewer age is 56, highlighting the urgency of attracting younger viewers. Paramount executives plan to revitalize networks like MTV, Comedy Central, and Nickelodeon without increasing costs. Their strategies include expanding digital content, enhancing brand investments, and seeking new revenue streams outside cable.

The company recently signed a $7.7 billion deal for Ultimate Fighting Championship rights and partnered with creators of "Stranger Things" to bolster its entertainment lineup.

Yet, executives are weighing whether to retain or sell networks like BET. If kept, streaming head Cindy Holland has proposed investing more in premium content, with budgets exceeding $7 million per episode for original programming, surpassing standard production costs.

Despite the challenges, cable networks still contribute significantly to Paramount's earnings. Content from Nickelodeon and others also supports the company's streaming platforms.

Price Action: PSKY stock closed at $15 on Friday.

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