Paramount Global Sees Growth in Direct-to-Consumer (DTC) Revenue

Paramount Global had a good start to the year with direct-to-consumer revenues increasing by 9 percent in the first quarter. The company saw an overall revenue decrease of 6 percent to $7.2 billion, but turned things around from a year-ago operating loss to record a $550 million operating profit.

Co-CEOs George Cheeks, Chris McCarthy, and Brian Robbins shared their enthusiasm for the quarter’s performance. They credited a strong content lineup and focused execution for their success. Paramount+ continued to shine with the second-most top 10 SVOD originals, and CBS is on track to be the most-watched network for the 17th season in a row.

The direct-to-consumer segment saw revenues of $1 billion, with advertising down 9 percent to $473 million, while subscription revenues rose by 16 percent to $1.5 billion. Despite a loss of $109 million, the segment is making progress. Paramount+ ended the quarter with 79 million subscribers and a 2 percent increase in ARPU.

On the TV media front, revenues fell by 13 percent to $4.5 billion due in part to Super Bowl comparisons from the previous year. Ad revenues dropped by 21 percent to $2 billion, and affiliate and subscription fees fell by 9 percent to $1.8 billion. Licensing revenue, however, rose by 4 percent to $674 million.

In the filmed entertainment segment, revenues decreased by 4 percent to $627 million, with a 3 percent drop in theatrical revenue offset by a 6 percent increase in licensing and other revenues.

Paramount is expecting to close the Skydance transaction in the first half of the year, pending regulatory approval. All in all, it was a solid quarter for Paramount Global, with a promising outlook for the future.