Paramount+, Faire, Havas: The Business Models Shaking Up Media and Commerce

The Strategic Shifts at Paramount+, Faire, and Havas

In a week marked by business model recalibrations, Paramount+ is quietly preparing a "free front porch" of ad-supported content that does not require a paid subscription. The move, reported by Business Insider, would require a user login—creating a direct funnel for upselling subscribers while serving personalized ads. It comes just after Netflix executives reiterated they would not follow a similar path, citing cannibalization fears, underscoring the high-stakes trade-off between audience reach and premium revenue.

Meanwhile, wholesale marketplace Faire announced the expansion of its Promoted Listings product into Europe. The platform lets consumer brands target the retailers and wholesale buyers who decide what stock gets ordered, flipping the typical retail media model that focuses on end consumers. Faire CRO Jen Burke described the approach as "fishing with dynamite" compared to broad consumer targeting, with new video and takeover formats on the roadmap for later this year.

On the agency side, Havas CEO Yannick Bolloré told investors the holding company has reached "90% AI proficiency" among its teams, anchored by proprietary tools like the Converged AI operating system. The milestone helped win new US accounts including Farmers Insurance and contributed to 2.5% organic growth in Q2—essentially flat compared to the same period last year—highlighting that AI adoption is now table stakes, not a growth silver bullet.

What These Moves Mean for Streaming, Commerce, and Agencies

Paramount+'s Free Front Porch: Calculated Risk or Cannibalization Catalyst?

By requiring a login for free content, Paramount+ can harvest user data and target ads with precision—a model its sibling Pluto TV already uses, but without the paywalled hit library that hooks viewers. The strategy mirrors Apple TV's free episode previews and a rumored Disney initiative. Netflix's public hesitancy is notable: its co-CEO Greg Peters explicitly warned about "cannibalization of paid tiers." If Paramount+ can navigate that risk while churning free viewers into subscribers, it could pressure rivals to follow suit. The threat is that a poorly gated free tier simply trains audiences to avoid paying, especially if ad loads become intrusive.

Faire's Wholesale Targeting: Retail Media's Next Battlefield

Traditional retail media networks—from Amazon to Walmart—optimize for the shopper. Faire's wholesale promoted listings invert this by letting brands target the business buyers who make stocking decisions. This B2B2C approach could unlock marketing budgets that aren't yet tapped by consumer search or social platforms. Expansion into Europe, plus planned off-platform extensions, signals that Faire sees wholesale buyer targeting as a distinct ad category, not a niche. The risk: brand advertisers may struggle to measure ROI when the ultimate purchase happens at the retail level, and established retail media networks could quickly copy the model.

Havas's AI-First Claim: Efficiency, Not (Yet) Acceleration

Bolloré's assertion of 90% AI proficiency across agencies suggests a deep operational integration, but the financial results tell a more sober story: organic growth was essentially unchanged year-on-year. AI is helping win pitches—see the Farmers Insurance and Vinted wins—but it hasn't yet expanded margins or billings in a transformative way. The real test will be whether Havas can convert its AI backbone into higher-value creative and media services, or whether AI primarily automates existing tasks without altering the competitive landscape. For holding companies broadly, the Havas data point suggests AI is becoming a hygiene requirement for staying relevant, not a reliable growth engine.

Implications for Competitors and Investors

• Streaming platforms: Paramount+'s login-gated free tier creates a direct pipeline for upselling. Competitors wary of cannibalization should study its conversion rates once launched; a low-risk test could involve selective content windows rather than a permanent free library.
• Retail media networks: Faire's wholesale targeting opens a new B2B ad spend stream. Networks with rich buyer-side data (e.g., commerce platforms and wholesalers) should evaluate whether they can offer "buyer targeting" alongside existing consumer-focused products, especially as Faire eyes off-platform extensions.
• Agency holding companies: Havas's flat growth despite 90% AI proficiency implies that AI is infrastructure, not a growth lever. In pitches, agencies must articulate how their AI capabilities lead to demonstrable client outcomes—not just internal efficiency—to justify premiums and win accounts like Havas did with Farmers Insurance.