Paramount Reports D2C Gains

Direct-to-consumer revenues were a bright spot in Paramount’s Q2 results, rising 40 percent while overall revenues slipped by 2 percent to $7.6 billion.

“In Q2, we maintained our focus on scaling our streaming platforms, maximizing our traditional business, and building a sustainable business model that will return the company to significant earnings growth in 2024,” said Bob Bakish, president and CEO. “Notably, Paramount+ revenue grew 47 percent, total DTC ad revenue increased 21 percent, and global viewing hours on Paramount+ and Pluto TV were up 35 percent year-over-year. And despite the environment, TV media continued to contribute significant earnings. As we look forward, we will continue to be guided by our content-first approach and seek to maximize its value across platforms and revenue streams, while also operating with the utmost efficiency through this year of peak streaming investment.”

TV media revenues were also down 2 percent, to $5.16 billion. Ad revenues were down 10 percent to $1.9 billion, affiliate and subscription fees fell by 2 percent to $2 billion and licensing revenues rose by 17 percent to $1.2 billion.

Direct-to-consumer revenues rose to $1.7 billion, with subs revenues at Paramount+ rising 47 percent to $1.2 billion and ad revenues from Paramount+ and Pluto TV hitting $441 million. Paramount+ added 700,000 subs in the quarter to reach 61 million.

Filmed entertainment was down 39 percent to $831 million, largely due to prior-year comparisons—Q2 2022 included Top Gun: Maverick.