Paramount Global has reported mixed results in its third-quarter earnings, with streaming service Paramount+ gaining 3.5 million subscribers but overall revenue declining due to significant drops in its television and film businesses.
Decline in Traditional Businesses:
The company, which owns CBS, Paramount Pictures, and cable networks like Comedy Central and MTV, saw its Q3 revenue fall 6% to $6.73 billion, compared to $7.13 billion in the same period last year. This decline was attributed to a 6% drop in revenue from its TV properties and a substantial 34% decline in its film business.
Streaming Growth:
Despite the struggles in its traditional businesses, Paramount’s direct-to-consumer operations showed positive growth, with revenue rising 10%. Paramount+ added 3.5 million subscribers in the quarter, reaching a total of 72 million.
Challenges in the Changing Media Landscape:
Paramount, like other traditional media companies, is facing challenges in adapting to the evolving media landscape. The shift towards streaming and on-demand viewing has impacted its traditional TV and film businesses, particularly its entertainment-focused cable networks.
Cost-Cutting Measures:
In recent months, Paramount has implemented cost-cutting measures, aiming to reduce expenses by $500 million. The company is also awaiting a merger with Skydance Media, which is expected to bring further cuts once the deal closes in the first half of 2025.
Focus on Streaming Profitability:
Despite the overall revenue decline, Paramount highlighted the profitability of its direct-to-consumer segment for the second consecutive quarter. “Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters,” said the company’s CEOs.