DTC Gains for Paramount Global

Direct-to-consumer was a bright spot in Paramount Global’s first quarter, with revenues rising 9 percent as Paramount+ expanded its base to 79 million subs.

Overall revenues at the company were down 6 percent to $7.2 billion, but it emerged from the year-ago operating loss of $417 million to record an operating profit of $550 million.

Co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said, “We are very pleased with our performance in the quarter, driven by a powerful content slate and focused execution. Paramount+ again had the second most top 10 SVOD originals, and CBS is poised to be the most-watched network for the 17th consecutive season. We are particularly proud of our progress in DTC, where Paramount+ saw continued improvement in subscribers, user watch time, and churn and remains on track to reach domestic profitability for 2025. Taken together, this contributed to a nearly $180 million improvement in DTC profitability. These impressive results were driven by our talented teams and creative partners, and we are grateful for their contributions.”

DTC revenues in the period were $1 billion, with advertising down 9 percent to $473 million while subs revenues rose 16 percent to $1.5 billion. The segment narrowed its loss to $109 million. Paramount+ ended the quarter with 79 million subs and an ARPU that was up by 2 percent.

TV media took a hit, falling 13 percent to $4.5 billion, partly due to prior-year comparisons when CBS was home to the Super Bowl. Ad revenues dropped by 21 percent to $2 billion, and affiliate and subs fees fell by 9 percent to $1.8 billion, while licensing rose by 4 percent to $674 million.

Filmed entertainment revenues fell by 4 percent to $627 million, with theatrical down 3 percent while licensing and other revenues rose by 6 percent.

Paramount says the Skydance transaction is expected to close in the first half, pending regulatory approval.