Paramount Global unveiled its fourth-quarter financial results on Wednesday, revealing a persistent streaming loss even as it braces for a merger with Skydance Media, expected to close in 2025. The major studio reported yesterday a loss of $286 million for its direct-to-consumer (DTC) segment—which includes Paramount+, Pluto TV, and BET+—a marked improvement from the $490 million loss in Q4 2023. Despite this narrowing gap, the loss continues to underscore the struggles of major studios to find a way to become profitable with streaming 2025.
For the full year, Paramount’s DTC segment slashed its loss on streaming by $1.2 billion, landing at $497 million compared to 2023’s deeper deficit. Paramount+ drove much of this progress, adding 5.6 million subscribers in Q4—up from 3.5 million in Q3—to reach approximately 77.5 million total subscribers, bolstered by hits like Landman, Tulsa King, and Lioness. Yet overall, the company swung to a Q4 net loss of $224 million, a stark reversal from the year-earlier net earnings of $514 million, with revenue climbing 5% to $7.98 billion from $7.63 billion. The per-share loss hit 33 cents, down from 77 cents in earnings a year ago, while operating income dipped to $129 million from $404 million, reflecting a challenging quarter tempered by strategic gains.
Breaking it down, DTC revenues rose 8% to $2.01 billion, fueled by subscriber growth and cost efficiencies, though growth is expected to slow in Q1 2025 due to content timing. TV media revenues, however, slipped 4% to $4.98 billion, dragged by declining linear ad sales and fewer CBS sports events, despite a boost from political ads. The filmed entertainment division shone brightest, with revenues soaring 67% to $1.08 billion, propelled by theatrical successes Gladiator II and Sonic the Hedgehog 3. “Across the business—film, television, and streaming—we continue to focus on franchise growth and management, capitalizing on Paramount’s rich library and IP,” co-CEO Brian Robbins told analysts during a post-market call.
“We’re proud of the transformative year we delivered since becoming co-CEOs,” Robbins, alongside George Cheeks and Chris McCarthy, said in a statement. “DTC profitability improved $1.2 billion in 2024, driven by an impressive year at Paramount+, where we added 10 million new subscribers and delivered a 33% increase in revenue.” This confidence underpins their forecast for Paramount+’s domestic profitability in 2025—a pivotal goal as Paramount, controlled by Shari Redstone’s National Amusements, nears its Skydance merger, announced earlier this year.
The results arrive amid a shifting landscape. Cable TV’s 2024 loss of over 5 million subscribers highlights the urgency of Paramount’s streaming pivot, though its $497 million annual DTC loss—while improved—shows the transition’s cost. With Skydance poised to take the reins, Paramount’s Q4 underscores a company at a crossroads: leaning on theatrical wins and streaming growth to offset linear declines, all while betting its future on a leaner, digital-first identity. Investors and analysts will watch closely as the deal looms, with Paramount’s streaming trajectory a key barometer of its post-merger fate.
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