Paramount reduces streaming losses in fourth quarter

Paramount Global recently released its earnings report for the latest quarter, revealing a 5% increase in revenue compared to the same quarter last year. Despite this growth, the company reported a net loss of US$224 million due to operating costs associated with an upcoming merger with Skydance Media.

The company’s Direct-to-Consumer unit, which includes Paramount+, Pluto TV, and BET+, narrowed its loss position significantly from US$490 million in Q4 2023 to US$286 million in the most recent quarter. Paramount+ in particular saw significant growth, adding 5.6 million new subscribers and increasing revenue by 8% year-over-year to US$2 billion. SpongeBob SquarePants was the top-performing title on Paramount+, attracting the most viewers among kids and families.

The co-CEOs of Paramount Global, George Cheeks, Chris McCarthy, and Brian Robbins, expressed optimism about the company’s future as it transitions to a “streaming-first company.” They highlighted the improved profitability of the Direct-to-Consumer unit, which saw a US$1.2 billion increase in 2024, driven by Paramount+ adding 10 million new subscribers and a 33% revenue boost. The company is confident that Paramount+ will achieve full domestic profitability in 2025.

Paramount is also on track for its merger with Skydance, expected to be completed in the first half of 2025. In terms of revenues, the company saw a 4% decline in quarterly TV media revenue, while operating profit dropped by 17%. On the film side, revenue increased by 67%, with the success of movies like Sonic the Hedgehog 3 contributing to this growth. The third installment in the Sonic franchise has generated US$483 million in ticket sales against a budget of US$122 million.

Overall, Paramount Global’s latest financial results point to a promising future as the company continues to focus on expanding its streaming services and delivering engaging content to viewers.