As Paramount Global Shares 4Q4 Ad Sales Decline, Streaming Costs Rise; Paramount+ adds 9.9 million subscribers; Film Bright on ‘Smile’
Paramount+ added 9.9 million subscribers last quarter to 56 million, an 81% year-over-year revenue increase as higher spending on streaming and parent Paramount Global widened stepper losses in a mixed quarter. Total revenue was almost flat with lower ad sales. Profits plummeted. Shares fell in pre-market trading.
The studio looked bright last quarter on horror thrillers smileReleased on September 30
Total revenue of $8.1 billion was up 2% from the prior year.
Streaming subscriber growth was driven by a strong content slate, including NFL, expansion of existing franchises. Top Gun: Maverick and the success of new franchises such as 1923 Tulsa King And smileas well as CBS’ overall entertainment slate.
Global DTC subscribers have grown to over 77 million.
Streaming revenue rose 30% year-over-year to $1.3 billion, including an 81% jump at Paramount+. Toll subscription revenue grew 48% year over year, reflecting Paramount+. Streaming ad sales were up 4% and subscriptions were up 48%. Adjusted loss increased by $73 million to $575 million. Costs rose from $1.57 billion to $1.97 billion.
In TV and media, advertising revenue fell 7%. Affiliate and subscription revenue decreased 4%. Licensing and other revenues declined 11%. Operating profit rose 5% but on lower costs.
It’s been a tumultuous few weeks for the company amid a sweeping shift toward TV with Showtime’s merger with Paramount+ and its merger with MTV Entertainment Studios, a merger that led to layoffs, with 120 internally dubbed The Valentine’s Day Massacre this week at the premium network. .
Some investors are taking note: Warren Buffett’s Berkshire Hathaway boosted its investment in Paramount by an additional 2.4 million last quarter.
“Paramount continues to demonstrate the success of its global multiplatform strategy, with popular content at its core. Nowhere was this more evident than in the growth of Paramount+, which posted a record 9.9 in the fourth quarter, driven by hit content such as Top Gun: Maverick, 1923 and Criminal Minds: Evolution. million subscribers added. Also, in 2022, 6 films from Paramount Pictures opened at #1 at the US box office and Paramount regained its position as the most-watched media family on linear television. Our content and platform strategy is working and this year with more exceptional content. , we expect the company to return to revenue growth in 2024,” said CEO Bob Bakish.
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