Paramount Delivers Subscriber Gains, Sees Ad Revenues Fall

Paramount’s Q4 revenues were relatively stable at $8.1 billion, a 2 percent increase, with record subscriber gains at Paramount+, while ad revenues fell in its TV media segment.

“Paramount continues to demonstrate the success of its global multiplatform strategy, with popular content at its core,” said Bob Bakish, president and CEO. “Nowhere was this more evident than in the growth of Paramount+, which added a record 9.9 million subscribers in the fourth quarter, driven by hit content like Top Gun: Maverick, 1923 and Criminal Minds: Evolution. In addition, in 2022, Paramount Pictures had six films open at number one in the U.S. box office, and Paramount regained its position as the most-watched media family in linear television. 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.”

In the TV media segment, revenues fell by 7 percent to $5.9 billion, with ad revenues down 7 percent to $2.7 billion, affiliate and subscription revenues falling 4 percent to $2 billion and licensing and other down 11 percent to $1.2 billion.

Meanwhile, direct-to-consumer revenues rose 30 percent to $1.4 billion, with a total DTC subs base of 77 million. At Paramount+, the subs base grew to 56 million, with revenues up 81 percent. Pluto TV increased its global monthly active users by 6.5 million. Subscription revenues in the DTC segment were up 48 percent to $936 million, while ad revenues increased by 4 percent to $460 million. The segment’s loss widened to $575 million, with expenses up by 25 percent.

Filmed entertainment revenues rose 35 percent to $936 million, with theatrical revenues of $97 million and licensing up 28 percent to $833 million.