Paramount Global said it added more than 10 million streaming subscribers globally in the fourth quarter, but losses on its direct-to-consumer business rose 15% to $575 million.
The company called Paramount Plus’s performance a win, but the streaming losses contributed to all but wiping out Paramount’s profits, which were down 99% from a year ago. Net income and revenue were slightly below Wall Street forecasts.
The theme of adding streaming subscribers while losses mount has become a familiar one in the media business.
Also Read: Paramount Lays Out Plan To Reduce Streaming Red Ink
On the company's earnings call, CEO Bob Bakish said the company planned to raise prices on Paramount Plus and control spending on programming by focusing on franchises.
The price for the premium tier of Paramount Plus -- including Showtime -- will rise $2 a month to $11.99. The basic essential tier, not including Showtime, will go up $1 to $5.99 monthly.
Combining Paramount Plus with Showtime is expected to save the company $700 million annually, CFO Naveen Chopra said.
Paramount Plus added 9.9 million subscribers in the fourth quarter, reaching a total of nearly 56 million. Revenue rose 81%. Global direct-to-consumer subscribers rose to 77 million, up 10.8 million in the quarter.
Direct-to-consumer revenue increased 30% to $1.4 billion, with subscription revenue up 48% to $936 million and ad revenue up 4% to $460 million.
The company’s ad-supported streaming platform Pluto TV added 6.5 million monthly active users, finishing the year with nearly 79 million.
Overall, the company reported that earnings dove to 21 million, or 1 cent a share, from $2.6 billion, or $3.16 a share, a year ago.
Revenue rose to $8.13 billion from $8 billion a year ago.
“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 Plus, which added a record 9.9M subscribers in the fourth quarter, driven by hit content like Top Gun: Maverick, 1923 and Criminal Minds: Evolution,” Bakish said.
‘In addition, in 2022, Paramount Pictures had six films open at No. 1 in the U.S. box office and Paramount regained its position as the most-watched media family in linear television,“ Bakish added. ”Our content and platform strategy is working and, with even more exceptional content coming this year, we expect to return the company to earnings growth in 2024.”
Paramount’s TV business reported a 5% increase in operating income to $1.3 billion. Revenues were down 7% to $5.9 billion. Ad revenues were down 7% to $2.7 billion and affiliate and subscription revenue was down 4% to $2 billion. Income grew because expenses were down 9% to $4.6 billion. ■
