DTC Gains for Paramount in Q3

Direct-to-consumer was a bright spot for Paramount in the third quarter as weaker performances in TV and film saw overall revenues drop by 6 percent to $6.7 billion.

“Our hit content drove strong performance in Q3 where Paramount+ added 3.5 million new subscribers, solidifying our position as the number four global SVOD service,” said co-CEOs George Cheeks, Chris McCarthy and Brian Robbins. “Our DTC segment successfully delivered profitability for the second quarter in a row, improving by more than $1 billion over the past four quarters, and, across the company, we continue to successfully execute non-content cost reductions that will result in $500 million in annual run rate savings. With two very strong quarters under our belt, it’s evident that we have clear momentum and that our plan is working thanks to our very talented teams and creative partners.”

Direct-to-consumer revenues rose 10 percent in the period to $1.9 billion, with subs revenues rising 7 percent to $1.3 billion and ad revenues rising 18 percent to $507 million across Paramount+ and Pluto TV. Paramount+ revenues were up 25 percent, with subs up by 3.5 million to 72 million. ARPU at the SVOD service rose by 11 percent. Adjusted OIBDA at the segment was up to $49 million from the year-ago loss of $238 million.

TV media revenues fell 6 percent to $4.3 billion, with affiliate revenues dropping 7 percent to $1.9 billion, advertising falling 2 percent to $1.7 billion and licensing down 12 percent to $760 million. Adjusted OIBDA was down 19 percent to $936 million. Filmed entertainment fell 34 percent to $590 million, with a plunge in theatrical revenues to $108 million, while licensing slipped 6 percent to $480 million. Adjusted OIBDA emerged from the year-ago deficit of $49 million to a profit of $3 million.

The merger with Skydance is expected to close in the first half of 2025.