16 Oct 2008

Paramount cuts costs and films

11:29 am on 16 October 2008

Paramount Pictures has reduced its schedule of film releases and cut costs by about $US50 million in what the studio called a "volatile" economy.

Shares in parent company Viacom Inc closed down nearly 8.9% after Paramount said it would release 20 films in 2009, down from 25 in 2008 and 26 in 2007.

Studio chief executive Brad Grey said in an interview on Wednesday that no industry is immune to the market turmoil of the past few weeks.

The company, which is nearly 100 years old, recently parted ways with Steven Spielberg's DreamWorks SKG, which it bought in 2005.

Walt Disney Co also decided to cut its number of releases and focus on big event movies a few years ago.