Paramount cuts annual release target to 20 films (Reuters)

LOS ANGELES (Reuters) - Paramount Pictures said on Wednesday that it had cut its release target to 20 films annually to more effectively compete in the changing marketplace and realize new operating efficiencies, and parent Viacom Inc's shares fell 9 percent.

The number of films from which the slate was reduced was not immediately available.

Paramount, which recently saw the departure of DreamWorks SKG principals Steven Spielberg, David Geffen and Stacey Snider, said it now planned to release 12 films, including MTV Films and Nickelodeon Movies, and up to four additional releases from its Paramount Vantage unit.

Paramount will also continue to distribute two to four films a year produced by DreamWorks Animation SKG Inc, a separate, publicly traded studio run by Jeffrey Katzenberg, and Marvel Entertainment Inc's Marvel Studios.

Paramount said the new release strategy complemented efficiency efforts announced earlier in the year.

In June, the company combined certain Vantage departments with Paramount's, eliminating redundancies and cutting costs.

Moving forward, Vantage's new creative strategy will be to release up to four lower priced, cutting-edge films a year, it said.

Paramount said the departure of the DreamWorks principals enabled it to further integrate creative operations to maximize top talent.

Viacom's Class B shares were down $1.83 at $18.60 in midday New York Stock Exchange trade.

(Reporting by Sue Zeidler; Editing by Lisa Von Ahn)