Paramount Executives Highlight CBS and Paramount+ positives

Paramount executives recently shared some positive news during the company’s earnings call, highlighting the growth of CBS and Paramount+. According to George Cheeks, the CBS network saw a 3% increase in audience compared to last year, which jumped to 12% without sports. Streaming of CBS primetime shows on Paramount+ also saw a significant surge, up by 35%.

During the call, Cheeks addressed a question about the potential impact of changes in reverse compensation from affiliates. He emphasized the mutually beneficial relationship between CBS and its affiliate partners, highlighting the valuable content CBS provides and the scale distribution from affiliates. Cheeks expressed concerns about the potential harm to affiliates and viewers if this dynamic were to shift.

The quarterly report revealed that Paramount’s overall revenue decreased by 6% compared to the previous year, totaling about $7.2 billion. The TV media division saw a 13% decline in revenue, primarily attributed to the absence of the Super Bowl. Excluding the Super Bowl, revenue numbers would have shown a 2% increase overall.

Despite these challenges, there were several notable achievements. CBS is on track to win its 17th consecutive season as the most-watched broadcast network, with top shows dominating the rankings. Audience growth for CBS network was strong, and streaming on Paramount+ soared by 35%, outpacing its competition.

In the direct-to-consumer unit, Paramount+ saw a 9% increase in revenue, reaching over $2 billion. The platform ended the quarter with 79 million global subscribers, up 11% year-over-year. Streaming watch time per user increased by 17%, and churn rates improved significantly.

Overall, Paramount remains optimistic about the future, with plans to close its Skydance transaction in the first half of the year. Despite challenges in the advertising landscape, the company expects a stabilization of supply-demand dynamics in the streaming space. The macro environment remains dynamic, but Paramount is focused on expense reductions to mitigate potential impacts on revenue and cash flow.