Paramount+ profit surprise
February 29, 2024
Paramount Global has reported revenues down YoY in Q4, but the studio saw notable streaming gains. Paramount+ reached 67.5 million subscribers during the quarter, a net increase of 4.1 million, and recorded 69 per cent revenue growth YoY. The company said it expects to achieve profitability for the SVoD service by 2025.
Subscription revenue grew 43 per cent, partially driven by price increases, and revenue across its entire direct-to-consumer segment grew 34 per cent. Paramount also reported a 27 per cent rise in global viewing hours across Paramount+ and AVoD service Pluto TV during Q4. Revenue for filmed entertainment decreased 31 per cent, which was primarily attributed due to lower licensing revenue.
Overall, Paramount’s Q4 net income was $514 million (€474m), up from $21 million a year ago, when the company took $309 million in restructuring charges. Revenue fell to $7.6 billion from $8.1 billion.
The company – home to brands including CBS, Showtime, BET and Nickelodeon – said it will take a $1 billion write-down in the current quarter for layoffs and restructuring.
CEO Bob Bakish commented: “Our disciplined execution and strong content offering drove our results in 2023, as we continue to evolve our business for profitable growth in 2024 and beyond. In Q4, Paramount+ revenue increased 69 per cent, DTC Adjusted OIBDA improved for the third consecutive quarter, and we now expect to reach domestic Paramount+ profitability in 2025 – a significant milestone. Looking ahead, we continue to be focused on maximising the return on our content investments and scaling streaming, while transforming the cost base of our business. And I couldn’t be more thrilled with the early momentum we’ve had across every platform in 2024, demonstrating the power of our strategy and assets.”